Icelandic carrier Play has secured an air operator certificate (AOC) for its new Maltese subsidiary as part of a restructuring process.
The new carrier, known as Play Europe, plans to offer aircraft leasing and operational support services for other European airlines.
Play has already secured its first agreement with an unnamed operator in Eastern Europe, which includes the lease of three aircraft under the new Maltese AOC. The aircraft will operate exclusively outside of Iceland and not under the Play brand.
“This is an important step for us,” Play CEO Einar Örn Ólafsson says. “These leasing projects will generate profitability for Play in line with previous projections and will make the company’s operations more predictable and stable, with a positive financial outlook.”
Play announced plans to establish its Maltese subsidiary last October amid a major shift in its business model and route network due to “disappointing” yields from its connecting flights between Europe and North America.
Alongside the Maltese venture, Play is now focusing on expanding point-to-point services to leisure destinations in Southern Europe and scaling back its reliance on connecting passengers through Reykjavik Keflavik Airport to North America.
The first aircraft registered under the Maltese AOC is a 2018-manufactured Airbus A321neo. Pilots and senior cabin crew for these operations will be employed directly by Play Europe and based in the countries where operations occur.
In February, Play reported a 17% rise in revenue per available seat kilometer (RASK) for the fourth quarter of 2024, due to higher average prices and better load factor, which was 4.2 points higher at 82.5%. Load factor for 2024 as a whole improved from 83.4% to 85.3%. However, a fourth-quarter net loss of $39.8 million was recorded alongside a $66 million net loss for the year, due to write-down of tax assets of $24.1 million.
The airline carried 1.6 million passengers in the full year of 2024, of which 336,000 passengers were in the fourth quarter. Play had 10 aircraft in its fleet and 42 destinations in its route network by the end of the year.
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