Low-cost Icelandic airline PLAY, known officially as Fly Play, has ceased operations on 29 September 2025 with immediate effect following a period of heavy financial losses for the company. The airline had over 400 employees, and the cessation of operations has left many passengers stranded, including many flying between Reykjavík and London Stansted, among other destinations.
PLAY Ends Operations After Four Years
PLAY was founded in July 2019 by two former executives from Wow Air, another Icelandic low-cost airline. It commenced operations in July 2021 and served destinations in Europe, North Africa, Asia and North America from its hub at Reykjavík–Keflavík International Airport (KEF). It also held virtual interlining agreements with multiple airlines such as easyJet and Spirit Airlines. The airline, like many others, suffered severe financial losses during the COVID-19 pandemic and resulting lockdowns around the world as flights were grounded. However, PLAY struggled to recover, leading to its eventual downfall. The last PLAY flight from Reykjavík to London Stansted (STN) landed on schedule at 10:40 local time on 29 September, although the return flight to Reykjavík has been cancelled.
Passengers checking their email inboxes or the airline’s website for further information have received the following statement:
“Dear passenger,
Fly PLAY hf. has ceased operations, and all flights have been cancelled.
Travel alternatives
We kindly advise you to check flights with other airlines. Some carriers may offer special “rescue fares” considering the circumstances.
Refunds and passenger rights
- If you purchased your ticket with a payment card, please contact your card issuer regarding a refund.
- If you booked your ticket as part of a package (flight + accommodation or services) through a travel agency in the EEA, please contact your travel agent for assistance.
- Some rights may also apply under EU Air Passenger regulations. In case of bankruptcy, claims should be directed to the appointed administrator.”
PLAY Passengers Stranded
British newspaper The Independent has estimated that around 120,000 passengers had forward bookings with PLAY before the airline’s cessation. Many passengers, especially those travelling to or from London Stansted, have been left with questions and concerns regarding their return journey now that their airline is no longer operating.
Andrew McConnell, spokesperson for the UK Civil Aviation Authority (CAA) said:
“It’s always unfortunate when an airline ceases operations, and we understand that Play Airlines’ decision will be unsettling for its employees and customers. UK customers seeking the latest information are advised to visit the Civil Aviation Authority’s website.”
When an airline ceases operations and leaves passengers in need of flights home, other airlines usually offer “rescue fares”, discounted fares for passengers who can no longer fly home on their original airline. EasyJet and Icelandair are expected to offer these to passengers at around £50 per person between Iceland and the UK.
Have you or anyone you know been affected by PLAY shutting down? Share your experiences in the comments.
