Airline’s Sudden End Of Operations Reportedly Leaves 1,750 Travelers Stranded And 500 Employees Fired

On September 28, Iceland-based carrier Play Airlines announced that it had canceled all of its flights due to the cessation of its operations. The airline shared a short informational statement on its website regarding its closure. It directed its passengers with upcoming flights to rebook with other lines and look into following up with their banks or travel agents about refund information. Though Play Airlines didn’t say it was or has filed for bankruptcy, it added that, “Some [passenger] rights may also apply under EU Air Passenger regulations. In case of bankruptcy, claims should be directed to the appointed administrator.”

“We kindly advise you to check flights with other airlines. Some carriers may offer special ‘rescue fares’ considering the circumstances,” Play Airlines told its flyers. “We are deeply sorry for the disruption this causes and thank you for your understanding.”

What Else Is There To Know About Play Airlines’ Closing?

The wake of Play Airlines’ closure has reportedly been dramatic for the carrier’s passengers and employees. The budget airline was founded in 2019 and operated flights to cities in North America and Europe. Its base is at Keflavik International Airport, located just outside Iceland’s capital, Reykjavik.

Gudjon Helgason, a spokesman for the airport, told the New York Times that Play Airlines’ closing impacted 1,750 passengers on September 29. Additionally, The Independent reported that 500 of the carrier’s workers have been let go.

As of this reporting, the carrier is still advertising “30% off flights to Iceland” on its website’s homepage.

In February 2025, Play Airlines released its 2024 “Financial Results.” In it, the carrier revealed that it served 1.6 million passengers in 2024. The company also noted that its cash position, business prospects, and customer satisfaction improved compared to figures from 2023.

“Our key focus in 2025 is to maximize cost efficiency, and we have already taken measures expected to reduce overhead costs by 15-20% during the year. We remain committed to identifying innovative ways to further improve services while controlling expenses with higher yields and lower costs, we anticipate considerable improvements in our operations,” said CEO Einar Örn Ólafsson at the time.

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