Icelandair Acquires 49% Stake in Maltese AOC Holder

Icelandair Group has acquired a 49% stake in Fly Play Europe Holdco (FPE), gaining access to an additional European Air Operator Certificate as part of a strategy to increase operational flexibility and develop new international business opportunities.

Icelandair will pay $686,000 for the stake in FPE, whose subsidiary Fly Play Europe Limited holds a Maltese AOC. The shares are being acquired from FPE hs., a fund managed by Isafold Capital Partners.

The transaction follows a letter of intent announced earlier this year and is intended to give Icelandair greater flexibility in structuring its operations. The airline said the additional European AOC could help simplify and streamline operations in Iceland, support international expansion and diversify revenue streams.

Icelandair and FPE have also entered into a shareholders’ agreement and financing arrangements, while Icelandair has secured options allowing it to increase its ownership stake at a later stage.

Completion remains subject to several conditions, including reaching an agreement with Maltese aviation authorities regarding the continued use of Fly Play Europe’s AOC.

Icelandair expects the transaction to have an immaterial impact on its 2026 financial performance and balance sheet but views the investment as a long-term strategic opportunity.

CEO Bogi Nils Bogason said access to the Maltese AOC is intended to strengthen Icelandair’s competitiveness and create additional opportunities while supporting the continued development of its Keflavik hub and aviation employment in Iceland.

Arma Advisory acted as financial adviser to Icelandair on the transaction.