Icelandair (FI, Reykjavik Keflavik) has reached an agreement with the owners of PLAY Europe (FPE, Malta International) to acquire a 49% stake in the company’s Maltese AOC, the flag carrier said in a press release, with an option to increase its stake at a later stage. The announcement follows Icelandair’s confirmation of talks over the transaction in April 2026.

According to the deal, Icelandair has purchased the shareholding in Fly Play Europe Holdco ehf (the legal name of PLAY Europe) from FPE hs., a fund managed by Isafold Capital Partners hf., for USD686,000.

The deal is subject to regulatory approval, including an agreement with the Maltese aviation authorities regarding the continued use of the company’s AOC.

"Acquiring a stake in a Maltese air operator certificate is primarily intended to increase operational flexibility, strengthen Icelandair’s competitiveness, and create new opportunities, all with the aim of supporting the continued development of our Keflavik hub and thereby safeguarding jobs and a strong operating environment for the aviation industry in Iceland for the years to come," Icelandair CEO Bogi Nils Bogason said.

PLAY Europe’s Maltese AOC, #MT-85, remains suspended for the time being, publicly available data from Transport Malta shows. The Maltese unit has no aircraft registered to it. Meanwhile, Icelandair operates a fleet of 39 aircraft, comprising one A320-200, six A321-200NX(LR)s, seventeen B737-8s, four B737-9s, eight B757-200s, two B767-300ERs, and one B767-300ER(BCF), plus three DHC-8-Q200s, and three DHC-8-Q400s under subsidiary Flugfélag Íslands.