11/06/2025
Play to remit the Icelandic Air Operator Certificate.
Earlier this year, PLAY announced a new strategy , concentrating on the profitable aspects of the business, namely “sunny destination flights” and discontinuing those that have not yielded results.
In the same time, two of the largest shareholders in the airline are planning to make a takeover offer for all outstanding shares in the company and delist it from the stock exchange. Alongside the offer, a share capital increase would take place.
This year only the share value has dropped by 67,15%, raising doubts on whether or not the delisting from the stock exchange is the result of the company failing to maintain the listing requirements.
PLAY’s stock has plummeted nearly 97% since it was listed on the First North market in summer 2021, when the IPO price was ISK 18 per share. The company was later moved to the main market in 2024. PLAY has struggled financially, repeatedly raising capital and restructuring its business model in an effort to find a sustainable path forward.
After an initial post-IPO surge, with shares briefly exceeding ISK 20, the stock began a steady decline. At the start of 2022, the share price was ISK 23.7, but it ended that year at ISK 13.1. By the end of 2024, it had dropped to ISK 1, hitting a low of ISK 0.64 on March 12, and closing at ISK 0.81 yesterday.
With this planned takeover and delisting, many investors are expected to realize substantial losses. One of the largest shareholders, Birta Pension Fund, holds a 10.35% stake in the company. Still, the offer price represents a 24% premium over yesterday's closing price.
The group plans to focus on the following key operational areas:
-Strong offering of flights from Iceland to sunny destinations.
-All flights to North America to cease as of October 2025.
-Fewer city destinations in Northern Europe.
- Operations will continue under a Maltese Air Operator Certificate (AOC), and the Icelandic AOC will be returned.
-Four aircraft will operate flights to and from Iceland, mainly to sunny destinations.
-The remaining six aircraft will be leased to other airlines in profitable ACMI projects.
-The company will be delisted from the stock exchange.
-Increased emphasis on the company’s offices in Malta and Lithuania.
Uncertainty exists on the repercussions on the local labour force,after the recent union’s contract.
Two of the largest shareholders in Icelandic airline PLAY, CEO Einar Örn Ólafsson and Deputy Chairman Elías Skúli Skúlason, have announced plans to launch a takeover bid for all outstanding shares of the company at a price of 1 ISK per share, with the intention of delisting the airline from the...
