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Play, a low-cost Icelandic airline, has shut down. The carrier is telling passengers: \u201cAll flights have been cancelled. We are deeply sorry for the disruption this causes and thank you for your understanding.\u201d<\/p>\n
Around 500 staff have lost their jobs.<\/p>\n
The airline had been in existence for about five years. It follows former Icelandic carriers Primera Air<\/a> and Wow Air<\/a> into aviation<\/a> oblivion. Those airlines failed in 2018 and 2019 respectively.<\/p>\n Play is telling passengers who have forward bookings: \u201cWe kindly advise you to check flights with other airlines.\u201d<\/p>\n These are the key questions and answers.<\/p>\n What was Play Airlines?<\/p>\n Play was created in 2019 by two Wow Air executives, after that airline went bust. It started flying on 24 June 2021.<\/p>\n The business model was similar to Wow Air \u2013 and, indeed the national carrier Icelandair<\/a>, which continues to be successful.<\/p>\n The aim was to cater for \u201cpoint to point\u201d traffic between Keflavik International airport outside Reykjavik<\/a> and locations in Europe, as well as running a network to the US that capitalised on Iceland<\/a>\u2019s prime North Atlantic location.<\/p>\n Until Monday morning, Play was serving European destinations including London Stansted, Amsterdam, Paris CDG, Alicante and Faro. The last flight from Reykjavik to Stansted arrived on schedule at 10.40am on Monday. The aircraft is still on the ground, with the return to Reykjavik cancelled.<\/p>\n Departures from Monday afternoon onwards are grounded, including on the sole remaining US route to Baltimore Washington International.<\/p>\n What went wrong at Play?<\/p>\n Prodigious financial losses throughout its brief existence. While many carriers lost money during Covid, most of them have recovered. Not Play.<\/p>\n In February 2025, the chief executive, Einar Orn Olafsson, claimed the airline had been turned around, saying: \u201cThe transformation of Play\u2019s business model is becoming increasingly evident \u2026 our revised flight schedule is already driving higher revenues and improved financials. Looking ahead to 2025, we are optimistic about continued progress.\u201d <\/p>\n But that was at the end of a year in which Play had lost $66m (\u00a349m), the equivalent of \u00a331 for every passenger carried, which was evidently not sustainable.<\/p>\n Play\u2019s most recent financial results were in August 2025, when it predicted profitability would begin in 2026.<\/p>\n The aviation analyst Sean Moulton said: \u201cPlay tried to replicate Wow Air, connecting secondary cities Europe to the US. But the market is limited and low yield.<\/p>\n \u201cWhilst they tried to change strategies by focusing on point-to-point, leisure destinations, the Icelandic population is small and any airline would struggle with this alone.<\/p>\n \u201cThe gap will allow Icelandair to expand.\u201d<\/p>\n The Independent estimates around 120,000 passengers have forward bookings with Play.<\/p>\n I am stranded due to the collapse of Play \u2013\u00a0what should I do?<\/p>\n Sit tight for a few hours or days. Standard airline practice is to offer \u201crescue fares\u201d to passengers whose carrier goes bust. These are seats at low prices sold to travellers who can prove they have a valueless Play booking. Icelandair<\/a> and easyJet are expected to offer fares of around \u00a350 between the UK and Iceland.<\/p>\n Between Baltimore and Iceland, Icelandair may offer a fare of around \u00a3100. While you are waiting, travel insurance may pick up the bill for your living expenses.<\/p>\n I have a forward booking with Play. What are my rights?<\/p>\n Andrew McConnell, spokesperson at the UK Civil Aviation Authority, said: \u201cIt\u2019s always unfortunate when an airline ceases operations, and we understand that Play Airlines\u2019 decision will be unsettling for its employees and customers.<\/p>\n \u201cUK customers seeking the latest information are advised to visit the Civil Aviation Authority\u2019s website.\u201d<\/p>\n The chances are that you paid with a credit or debit card. UK financial institutions will typically refund the payment without fuss.<\/p>\n If you have booked a package holiday for the future that includes flights on Play, the organiser of the trip is obliged to find an alternative way for you to reach the destination, or offer a full refund.<\/p>\n My Play flight last month was late or cancelled. Will I get the compensation I am due?<\/p>\n