Icelandic Panpan Gaming Airlines will end all flights to the U.S. in October, leaving the market 3 1/2 years after betting that the transatlantic flyers will flock to its low-priced fares.
According to the agency’s website, the competition will end on September 1 from Keflavik International Airport (KEF) to New York Stewart International Airport (SWF), arrive at Boston Logan International Airport (BOS) on September 15, and head to Baltimore/Washington International Thurgood Marshall Airport (BWI) on October 24.
The airline will focus on leisure travelers between Iceland and Europe, essentially it will try to reduce the size by leasing six of its 10 Airbus A320NEO family aircraft to other airlines.
help! What to do if your flight is cancelled or delayed
Travelers still have the option between Iceland and the former US destinations on Play. Iceland Airlines flies from KEF to BWI and BOS, data from Aviation Analytics Cirium shows. And, while it doesn’t fly to SWF (on the northern edge of the New York City metropolitan area), it does connect KEF to two major airports in New York City: Newark Liberty International Airport (EWR) and New York John F. Kennedy International Airport (JFK).
Play’s exit from the U.S. market is part of a strategic hub for improving profitability. The airline told investors on Tuesday that the North American market has “changed a lot” since the start of flights in April 2022. These changes include additional transatlantic capabilities for traditional carriers, new and continuous developments in long-term narrow aircraft such as the Airbus A321XLR, and a general shift in travelers’ desire for more quality products.
Daily Newsletter
Reward your inbox with TPG Daily Newsletter
Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG experts
Play follows a typical budget airline business model, with bargaining fares and fees for all other amenities, from allocated seats to checked baggage. Its best quality onboard products is a limited number of time-room seats.
The airline took off in 2021, a reboot of Iceland’s failed Discounter Wow Air. At the time CEO Birgir Jonsson accepted the comparison, touting Iceland’s strong tourism market and the budget needed to replace Iceland’s aviation. He said the game won’t repeat World of Warcraft errors by saving growth.
Jonsson said when he landed in Baltimore in April 2022 that demand for its first route entered as planned, with most travelers booking routes connecting the itinerary to Europe.
Pro Tip: The biggest mistake people make with travel reward credit cards
Investor speeches painted different pictures. Play’s North American flights only profited in the second and third quarters of 2023, and they lost money throughout the rest of their existence, according to the airline.
Einar Orn Olafsson, who replaced Jonsson as Playsson’s CEO in March 2024, told TPG in May that he focused on putting airlines into a solid financial foundation. North America’s growth will slow as European flights become more profitable, but aircraft carriers still see opportunities in the United States and Canada.
By the end of 2024, Play’s pivot away from the United States and Europe has become obvious. The airline ended its flight to Dulles International Airport (IAD) in December, and then flew to John Monroe Hamilton International Airport (YHM) near Toronto in April 2025.
Related readings:
