Icelandair Gains Foothold in Malta With Stake in Fly Play Europe

Icelandair Group has acquired a 49% stake in Fly Play Europe Holdco, giving the Icelandic airline group a second European operating platform through a Malta-registered subsidiary that holds a Maltese Air Operator's Certificate (AOC).

The deal, announced on 20th August, sees Icelandair acquire the stake from FPE hs., a fund managed by Isafold Capital Partners, for US$686,000. The parties have also reached a shareholders' agreement and financing arrangements, with Icelandair holding options to increase its ownership further, though no timetable or price has been disclosed for any future stake increase. The transaction is expected to have an immaterial effect on Icelandair's 2026 financial results.

Fly Play Europe's Maltese subsidiary was originally established by Icelandic low-cost carrier PLAY to support European operations, and its regulatory platform remained relevant even after PLAY ceased flying. Icelandair first signalled interest in April 2026, when it announced a letter of intent to explore the acquisition.

Access to the Maltese AOC gives Icelandair greater operational flexibility, from potentially diversifying revenue through ACMI and charter flying to supporting its core Icelandic operations out of Keflavík. No new routes, aircraft deployments or passenger services have been announced yet, and completion still depends on reaching agreement with Malta's aviation authorities over continued use of the AOC.

The deal lands against a backdrop of strong momentum in Malta's own tourism sector, which recorded 4 million inbound visitors in 2025, up 12.9% year-on-year, with growth continuing into 2026. For Malta, the investment adds another international aviation player to its regulatory ecosystem, reinforcing the country’s position as a credible base for aviation operators looking to expand their European footprint.