Icelandair Group has acquired a 49% stake in Fly Play Europe Holdco (FPE), giving the airline access to an additional European Air Operator Certificate (AOC) as it seeks greater operational flexibility and new international growth opportunities.
Icelandair is acquiring the stake from FPE hs., a fund managed by Isafold Capital Partners, for US$686,000. FPE’s subsidiary, Fly Play Europe Limited, holds an AOC in Malta. The deal follows a letter of intent announced earlier this year.
Icelandair said access to the Maltese AOC could help simplify and streamline its Icelandic operations while supporting the development of its international business. The investment is also intended to diversify revenue streams and strengthen the group’s long-term competitiveness.
As part of the transaction, the parties have entered into a shareholders’ agreement and agreed financing arrangements. Icelandair has also secured options to increase its stake in FPE at a later date.
Completion remains subject to an agreement with the Maltese aviation authorities over the continued use of Fly Play Europe’s AOC, among other conditions.
Icelandair expects the transaction to have an immaterial impact on its financial performance and balance sheet in 2026 but described the investment as a long-term strategic opportunity.
Arma Advisory acted as financial adviser to Icelandair on the transaction.
