Icelandair Group has acquired a 49% stake in Fly Play Europe Holdco (FPE) as part of a strategy to enhance operational flexibility and create new international business opportunities.
Icelandair will pay $686,000 for the stake, which it is acquiring from FPE hs., a fund managed by Isafold Capital Partners. FPE’s subsidiary, Fly Play Europe Limited, holds a Maltese Air Operator Certificate (AOC).
The investment follows a letter of intent announced earlier this year and is designed to provide Icelandair with greater flexibility in structuring its operations. The additional European AOC could help streamline operations in Iceland, facilitate international expansion and support the diversification of revenue streams.
As part of the transaction, Icelandair and FPE have entered into a shareholders’ agreement and financing arrangements. Icelandair has also secured options that could allow it to increase its ownership in FPE in the future.
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Completion of the transaction remains subject to several conditions, including an agreement with Maltese aviation authorities concerning the continued use of Fly Play Europe’s AOC.
Icelandair expects the investment to have an immaterial impact on its 2026 financial performance and balance sheet. However, the airline considers the deal a long-term strategic opportunity to strengthen its competitive position.
“Access to the Maltese AOC is intended to strengthen Icelandair’s competitiveness and create additional opportunities,” said Bogi Nils Bogason, CEO of Icelandair. He added that the investment would support the continued development of the airline’s Keflavik hub and aviation employment in Iceland.
