Talks underway on repatriation Flights after Play collapse

Icelandair is in discussions with the Ministry of Infrastructure about operating extra flights to bring home travelers stranded abroad following the bankruptcy of Play Airlines.

“We are in talks with the authorities regarding additional flights. Those discussions are with the Ministry of Infrastructure,” said Bogi Nils Bogason, CEO of Icelandair.

He expressed sympathy for Play’s passengers and employees:

“The first thing that comes to mind with this news is how difficult the situation is for Play’s passengers and staff, and our thoughts are with them.”

Limited impact on Icelandair

Bogason noted that the impact on Icelandair will be minimal, since competition from international airlines remains strong.

“Play had already announced significant changes to its business model, so the environment had shifted even before this news,” he said.

Running an airline from Iceland will remain challenging: “There is massive competition, with more than twenty airlines flying here. Inflation is high, the króna is strong, and wages have risen sharply. Airlines around us are merging and expanding, and we must simply continue to perform.”

Ticket prices

Asked whether Play’s closure might lead to price increases on some routes, Bogason replied:

“Not because of this. We operate in a dynamic environment, and competition will remain intense. Play had already changed its setup, and we’re competing with some of the largest airlines in Europe and the U.S.”

He acknowledged there might be some effect in the leisure travel market, where Play had been active, but emphasized that Icelandair’s main focus remains its international network, as more than 80% of its passengers are non-Icelandic travelers.

Icelandic roots remain

Bogason dismissed any idea of Icelandair relocating its air operator’s certificate, as Play had done by moving its license to Malta:

“We are an Icelandic airline, and that is our focus. The company has been built on that for decades, and it will continue to be run from here. There are no plans to seek an operating license elsewhere.”