Icelandic low-cost carrier PLAY has ceased operations, effective immediately, and canceled all flights, the airline announced on its website. Passengers are advised to seek alternatives with other carriers, some of which offer “rescue fares,” and to pursue refunds through payment providers or travel agents where applicable.
National and industry outlets in Iceland confirmed the abrupt closure, noting that about 400 employees are affected and thousands of travelers face disruption as schedules were halted at short notice. The company’s board attributed the decision to prolonged financial underperformance and weak recent ticket sales, following months of strain and strategic changes that failed to restore profitability.
PLAY launched scheduled flights in 2021 as Iceland’s second budget carrier, pursuing Europe–North America connections over Keflavík. The shutdown underscores the persistent challenges of long-thin, ultra-low-cost transatlantic models, even amid strong post-pandemic demand.
Sources: AeroTime, Simple Fluing, The Independent
Images: Jetphotos