It’s GAME OVER for PLAY Airlines, as the Icelandic low-cost carrier has announced that it has ceased operations, cancelling all flights with immediate effect.

In a very brief statement on their website, they announced the shutdown, advising customers to reach out to their banks and travel booking partners for refunds.

Dear passenger,

Fly PLAY hf. has ceased operations, and all flights have been cancelled.

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 credit 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.

More informationFor updates and guidance, please refer to:

  • www.icetra.is
  • www.kefairport.com

We are deeply sorry for the disruption this causes and thank you for your understanding.

PLAY Airlines was originally founded in July 2019 by two ex-WOW Air executives. After acquiring Airbus A321neos, the airline launched flights between Keflavik and a number of European destinations.

Over time, the airline expanded it footprint to more European cities, Morocco, Turkey and even the United States.

Even with expansion, PLAY unfortunately lived up to the color of its livery, with their financials constantly being in the red. They even established a subsidiary airline called PLAY Europe using a Maltese AOC, hoping to better capitalize on the European market.


The subsidiary brand was set up to also offer ACMI and charter services, operating flights on behalf of other airlines as a result of showing ticket sales on their end. They also surrendered their Icelandic AOC, and was allowed to operate instead as a virtual airline.

At the close, PLAY employed more than 450 workers, and operated a fleet of six Airbus A320neos and four Airbus A321neos. As sad as it is to see another airline close its doors, the Icelandic market has always proven to be very difficult to operate in.

With Iceland’s small population and seasonal tourism market, it’s not really sustainable for multiple carriers to compete with each other for a limited number of purchased seats. With connections to many cities across North America, Europe, Iceland and Greenland, I really can’t see anyone else trying to outcompete Icelandair.

Also, many low-cost brands attempted to offer cheap tickets between North America and Europe via Iceland, but this only worked in times when fuel prices were very low, making it easier for them to compete against other legacy brands.