PLAY airline has ceased operations and cancelled all flights

Icelandic low-cost airline PLAY is ceasing operations on 29 September 2025 and cancelling all future flights. Even after many efforts to stabilise the financial situation, bankruptcy has not been averted.

Brief official information about the cancellation of all flights can be found on the airline's official website: flyplay.com/news/important-information.

PLAY is going bankrupt - what to do if I have a purchased flight

The airline is unable to meet its financial obligations and is ceasing operations with immediate effect.

Due to its relatively large route network, this cancellation will affect tens of thousands of passengers who have already purchased tickets.

What to do in this case?

Chargeback - directly with the issuer of the card you used to pay for the ticket.
- The surest option if you bought the flight on your own
Your travel insurance company
- This is the best option with the best chance of getting your money back, but beware, some travel insurance policies exclude airline bankruptcy
Travel agent - if you bought your flight through a travel agent, for example as part of a package holiday, contact the travel agent first.

In the event of a chargeback, contact your card company or bank as soon as possible and request a chargeback. This is used if you pay for a service that has not been delivered or is not certain to be delivered.

While PLAY operates most of its routes to European Union countries, EU Directive 261/2004, which covers air passenger rights, does not apply to airline bankruptcies.

A flight you have already bought will be 100% cancelled without refund and you will probably not be refunded directly by the airline.

Alternatives for travel to Iceland

If you are still planning to travel, you will need to buy a new ticket with another airline, such as Icelandair, which operates on many of the same routes as PLAY.

Iceland is also served by low-cost airlines such as easyJet (mainly from the UK, Milan and Paris), Wizz Air (mainly from Poland, Italy and Hungary) and many others.

Compare flight prices to Iceland

Where does PLAY fly to?

The company had its main base at Iceland's largest airport Keflavík KEF.

Initially, the airline focused on transfer passengers between Europe and the US/Canada with quick and convenient connections in Iceland. For example, PLAY was the only foreign airline flying to New York's Stewart SWF or Toronto's Hamilton YHM.

Flights to North America were gradually phased out, focusing on transporting Icelanders to seaside holiday destinations and also on routes with the opposite potential - bringing tourists to Iceland. For example, routes from Prague PRG, Warsaw WAW, London STN, Vilnius VNO or Paris CDG were popular.

This is what the latest route map from 2025 looked like: