Icelandic airline PLAY plans to cease all flights to North America in October and scale back its European network following a takeover bid by the carrier¡¯s two largest shareholders.

The buyout is being led by PLAY CEO Einar ?rn ?lafsson, who?stepped into the role in March 2024, and vice chairman of the board El¨ªas Sk¨²li Sk¨²lason, who intend to purchase all outstanding shares at ISK 1 (US$0.008) per share, and delist the company from the stock exchange.

In a statement on Tuesday (10 June), the carrier also outlined planned changes to its operations, including ceasing all services to the US and flying to fewer city destinations in Northern Europe.

Operations will continue under a Maltese Air Operator Certificate (AOC), the carrier said, and the Icelandic AOC will be returned.

The budget carrier¡¯s fleet consists of?10 A320/321neo aircraft, four of which will operate flights to and from Iceland, ¡°mainly to sunny destinations¡±, while the remaining six aircraft will be leased to other airlines.

¡°This is primarily a plan for practical changes to the operations of the Icelandic airline PLAY,"??lafsson said. "We¡¯re focusing on the profitable aspects of the business ¨C sun destination flights ¨C and discontinuing those that have not yielded results.¡±

PLAY, which was?created in 2019?following the demise of Wow Air, had been building up its transatlantic route network from its Reykjavik base to destinations in Europe and North America following the pandemic.

The proposed changes will "strengthen" profitable operations, the carrier said, while its branding will remain the same and crews will continue working under Icelandic labour agreements.

The acquiring entity will be funded with a minimum investment of US$20 million, of which more than a third has already been secured, according to the company.