The Nordic airline market is undergoing significant changes, with major carriers adjusting their business models to respond to the growing challenges of the aviation industry. Play, Finnair, SAS, and others are rethinking their strategies in order to stay competitive in a rapidly evolving landscape.
Icelandic low-cost carrier Play has completely overhauled its strategy. Originally focused on transatlantic flights between Europe, Iceland, the U.S., and Canada, the airline now plans to transport Icelandic vacationers to popular destinations in Southern Europe. Play intends to establish a base in Tenerife, and part of its fleet will be registered in Malta. Additionally, the airline will offer wet lease services to other carriers, similar to what Finnair is doing.
Play currently operates in Germany with flights to Berlin, Düsseldorf, and Hamburg, but the long-term future of the route network remains uncertain.
Finnair’s strategy has shifted in response to the closure of Russian airspace. Previously known for its strong presence on Asian routes, Finnair now focuses more on short- and medium-haul flights. The airline is still expanding its U.S. network with more frequent flights to Dallas, Chicago, and Los Angeles, while also returning its attention to East Asia. Starting in summer 2025, Finnair will operate daily flights to Osaka and Tokyo, with new routes to destinations like Kirkenes in Norway.
SAS experienced a major transformation in 2024. Not only did the airline emerge from bankruptcy, but it also switched from the Star Alliance to the Skyteam alliance, joining forces with Air France-KLM, Delta Air Lines, and others. This change means the end of partnerships with Lufthansa and United Airlines. SAS is now concentrating more on regional routes and will add new long-haul flights to Seattle starting in May 2025. Additionally, Swedish regional airline Braathens will cease its passenger operations and begin flying for SAS under wet lease.
With SAS’s departure from the Star Alliance, Lufthansa has partnered with Norwegian regional carrier Widerøe to fill part of the gap. The new codeshare agreement will allow Lufthansa to offer more direct flights to Norwegian destinations such as Bergen, Trondheim, and Tromsø. The aim is to bring passengers closer to their destinations in Norway.
Icelandair is expanding its partnerships to capitalize on the growing tourism demand in the Nordic region. The airline has teamed up with Air Greenland and Atlantic Airways to strengthen connectivity between Iceland, Greenland, and the Faroe Islands. Icelandair is also collaborating with U.S. carrier Southwest and TAP Air Portugal. Unlike Play, Icelandair remains committed to its original business model of ferrying travelers between Europe and North America via Iceland.
The Nordic airline market is undergoing a period of rapid change, with carriers adjusting their business models and forging new partnerships to meet the challenges and opportunities of an increasingly competitive landscape. Whether it’s Play, Finnair, SAS, or Icelandair, these airlines are finding new ways to navigate the evolving aviation industry while addressing shifting demand and global competition.
More on the Nordic airlines (in German).
Header: © Finnair Mikko Pylkkö