Budget airline Play is the latest Icelandic carrier to close its books. Four years after its first flight took off, Play has cancelled all future flights and fired some 500 staff.
Play, which was officially founded in 2019 by two executives from Wow Air – another Icelandic budget carrier that went down that same year – has been running point to point traffic between Keflavik International airport outside Iceland’s capital Reykjavik and a number of destinations in Europe (including London Stansted, Amsterdam, Paris CDG, Alicante, and Faro) and the US (Baltimore Washington International).
It thereby copied former Wow Air’s business model, and its finances proved to be problematic. In 2024, for example, Play lost about $66 million. And while the airline remained optimistic, predicting in August 2025 that profitability would begin in 2026, it has now gone into administration.
“The board of Fly Play has decided to cease all operations, with all company flights being cancelled. The reasons for the decision are many, including poorer fiscal performance than expected, ticket sale has underperformed in recent weeks following negative media coverage about the company’s management, and disputes among some of the company’s staff about its adjusted policies. Last fall, Play introduced a new business model that initially inspired significant optimism. Unfortunately, it has now become clear that these changes cannot deliver the results needed to overcome the airline’s deep-seated financial troubles. In hindsight, these measures would have needed to be implemented much earlier”, the board of Play said in a statement.
PLAY has ceased operations and canceled all flights. The airline had been been trying to shift its business model, but says accumulated problems and continuing loses have forced this outcome. The airline currently has a fleet of 6 A320neos. https://t.co/JxiOfwvCwW pic.twitter.com/TyIV5TOmiv
— Flightradar24 (@flightradar24) September 29, 2025
Looking for alternatives
The last flights carried out by Play took place on Monday, 29 September. As of then, all 500 staff have lost their jobs and all future flights have been cancelled. According to the British newspaper The Independent, some 120,000 passengers had forward bookings with Play. The airline has recommended that passengers contact card issuers for possible refunds for tickets booked using credit cards, while those who booked a Play flight as part of a larger travel package should contact their travel agent, as they are generally entitled to an alternative or a refund.
“Dear passenger, Fly PLAY hf. has ceased operations, and all flights have been cancelled. We kindly advise you to check flights with other airlines. Some carriers may offer special ‘rescue fares’ considering the circumstances. We are deeply sorry for the disruption this causes and thank you for your understanding”, the airline stated on its website.
Another airline has gone bust — PLAY have just cancelled all of their flights with 400 staff laid off 🤯
— Jack's Flight Club (@jacks_flights) September 30, 2025
Not sure what to do when an airline collapses and your tickets are stuck? Keep reading… 👀
#PLAY#PLAYairlines#traveltips#traveladvise#travelnews pic.twitter.com/E5Lqcgqi3R
Icelandair, Iceland’s flag carrier, has already announced it would not be offering special fares to those impacted by Play’s shutdown. However, the airline has said it is looking into increasing availability on routes previously operated by Play. Everyone impacted by Play’s cancelled flights is advised to look for an alternative as soon as possible, as flights might quickly fill up.
