Nordic airline immediately halts flights after filing for bankruptcy

Low-cost Icelandic airline Play also shut down this week

Braathens established Braathens International Airways AB in 2022 (Getty Images)

A Nordic airline has announced it will stop flights immediately following aircraft delivery delays and “financial challenges”.

Braathens, a Swedish regional airline, has been forced to file for bankruptcy for operations on its Airbus fleet after just three years due to a “lack of liquidity”.

In 2022, Braathens established Braathens International Airways AB and Braathens Crew AB to offer Airbus flights to Scandinavian tour operators.

The airline said in a statement that delayed aircraft deliveries, high operating costs, and a decline in demand from tour operators had resulted in “financial challenges” despite “cost-saving measures”.

On 27 August 2025, the board of directors decided to gradually discontinue the Airbus business, but “extensive additional financing” was not secured to phase out operations.

Braathens said: “The Board of Directors and management deeply regret the situation, but given the acute financial situation, there are no alternatives left.”

Leased flights with Braathens’ ATR72-600 aircraft for other airlines will continue as scheduled.

According to the airline, union negotiations have been initiated to manage redundancies for approximately 200 employees and “safeguard jobs within the business”.

It added that the companies Braathens Regional Airlines AB, Braathens Regional Airways AB, Braathens People AB and Braathens Support AB are not involved in bankruptcy proceedings.

Per G. Braathen, majority owner of Braathens, said: “It is with great sadness that the Board of Directors tonight has been forced to file for bankruptcy for the Airbus business.

“Unfortunately, the funding that we have tried to get in place for a controlled phase-out has not been achieved, and I understand that those affected are sad, shocked and disappointed. Now we have no choice but to focus on the part of the business that can achieve long-term profitability.”

Braathens International Airways AB isn’t the only airline to stop operations this week.

Play, a low-cost Icelandic airline, shut down on Monday, with around 500 staff losing their jobs.

The carrier told passengers: “All flights have been cancelled. We are deeply sorry for the disruption this causes and thank you for your understanding.”

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