Two Airlines Collapse: What Does This Mean for Palma de Mallorca Passengers?
Friday, October 3rd, 2025
Fly PLAY Ceases Operations
Icelandic low-cost carrier Fly PLAY has officially shut down after almost five years in the skies. The airline, which connected Reykjavik with several European destinations, including Palma de Mallorca, has cancelled all flights and advised passengers to rebook with other carriers.
The collapse has left around 500 employees out of work. PLAY followed in the footsteps of other short-lived Icelandic airlines such as WOW Air and Primera Air, both of which went under in the late 2010s. Despite efforts to restructure and pivot towards leisure routes, the airline continued to post heavy losses – reportedly around £49 million in 2024 alone – making operations unsustainable.
For travellers in Mallorca, the loss of PLAY reduces direct connections to Iceland and onward links to North America via Reykjavik. The gap, however, is expected to strengthen the position of Icelandair, which has long dominated this niche market.
Braathens International Airways Files for Bankruptcy
Another airline casualty this season is Braathens International Airways, part of the Swedish Braathens Aviation group. The carrier, which also operated flights to Palma de Mallorca for Scandinavian tour operators, has filed for bankruptcy following delivery delays of new aircraft and a downturn in demand.
Only launched in 2022, the Airbus-focused operation never managed to overcome liquidity challenges. Rising costs, coupled with reduced bookings from its partner tour operators, forced the board to discontinue services. About 200 jobs are expected to be affected, though Braathens will continue some regional services with ATR aircraft under separate subsidiaries.
What This Means for Mallorca Travellers
Both PLAY and Braathens offered seasonal routes into Palma, particularly serving the Scandinavian and Northern European markets. Their withdrawal will reduce seat capacity to and from Mallorca, particularly for holidaymakers from Iceland and Sweden.
Passengers booked on either airline are advised to seek alternative flights as soon as possible, with other carriers expected to absorb demand over the coming months.
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