Braathens, PLAY, SAS and Finnair : Scandinavian skies are in turmoil

Braathens International vanishing from the skies

Then, there was 8 days ago the bankruptcy of low-cost Icelandic carrier PLAY. It was followed a day later by Braathens International Airways, a historical brand in Scandinavia. For many Northern Europeans, Braathens has been a name linked to Norway for decades and then to Sweden.

At the end of August, Braathens’ Board of Directors decided to focus on a growing fleet of the ATR72-600 turboprop, while Airbus aircraft linked to agreements with tour operators and other airlines would be gradually phased out. At that time, the Board of Directors and management were engaged in activities to secure financing for continued operations during the phase-out of the Airbus fleet.

The financing activities initiated by the company have however not been successful. As a result, the Board of Directors of Braathens International Airways AB has been forced to file for bankruptcy for the companies linked to the Airbus operations – Braathens International Airways AB and Braathens Crew AB. This means that all Airbus flight operations had to be discontinued immediately. The companies have a total of approximately 200 employees, all of whom are covered by the state wage guarantee.

Braathens International Airways AB was established in 2022 to offer Airbus flights to tour operators. The establishment process was more complex than expected and delayed aircraft deliveries as well as higher startup and operating costs resulted in financial challenges.

In 2023, the group of companies underwent a reorganization to which the situation in Braathens International Airways AB was a strong contributing factor. Since then, demand from tour operators has continued to decline. Despite cost-saving measures, it was not enough to ensure continued operations.

On 27 August 2025, the Board of Directors therefore decided to discontinue the Airbus business through a gradual phase-out. To secure the costs of continued operations during the phase-out, extensive additional financing was required. It unfortunately did not succeed. Since the pandemic, the owners have invested over US$32 million (300 million Swedish crowns) without succeeding in achieving profitability in the Airbus business. The Board of Directors and management deeply regret the situation. But given the acute financial situation, there are no alternatives left.

Regional affiliate remains active

“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,” explained Per G. Braathen, Chairman of the Board and majority owner of Braathens.

Braathens Regional Airlines AB, Braathens Regional Airways AB, Braathens People AB and Braathens Support AB are not subject to the bankruptcy proceedings. Operations will continue in these companies. It means that Braathens’ ACMI flights with ATR72-600 for other airlines will continue as planned.

Follow-up processes such as union negotiations are now being initiated, mainly linked to redundancies in the administration due to the situation in Airbus operations. Within shortly, the Board of Directors and management will implement measures to safeguard the parts of the business that still show demand and long-term viability.