Due to financial problems and an unsuccessful initial business strategy, Icelandic low-cost airline PLAY is now forced to find ways to remain competitive. One component of its new strategy is leasing its aircraft to SkyUp Airlines, among others.
According to the CFTS portal, this was reported by the publication Avianews.
According to the report, four PLAY aircraft have already been or will soon be at the disposal of SkyUp, which was forced to base its operations outside Ukraine after Russia invaded the country in 2022.
SkyUp is already using the aircraft leased from the Icelandic airline to operate scheduled flights out of Chisinau, as well as from airports in Poland and Romania.
The establishment of the PLAY low-cost airline was announced in late 2019. The airline was supposed to replace the low-cost carrier WOW Air. However, the pandemic delayed investors' plans. Nevertheless, PLAY eventually received its first aircraft and began operations in 2021.
The initial strategy was for PLAY to operate flights from Europe to America, using Reykjavik as an intermediate hub. However, this model could not withstand market competition.
According to Avianews, the new plan of the company's owners focuses on its survival. Therefore, starting in the fall of this year, the carrier will cease all flights to North America and reduce the number of flights to Northern European cities. The new strategy focuses on direct flights from Iceland to tourist destinations in Southern Europe, which are traditionally more profitable.
Another element of the new strategy is a significant reduction in the size of its aircraft fleet. Six of the ten aircraft operated by the airline will be leased to other European carriers.
Notably, since the beginning of the war and the subsequent relocation of its fleet to European airports, SkyUp Airlines has been forced to wet-lease its aircraft to other carriers. However, the Ukrainian carrier resumed scheduled flights under its own brand on 18 April 2025, using Chisinau as a hub.
SkyUp Airlines began operating regular flights from Poland on 27 May.
