Play Airlines Cancels All Flights, Leaves Passengers and Employees Stranded
On September 28, 2025, Play Airlines, a budget airline based in Iceland, announced the sudden cancellation of all its flights. The airline, which operated flights to North America and Europe, shared a brief statement on its website informing passengers of the closure. It also advised them to rebook with other airlines and seek refunds from their banks or travel agents. While Play Airlines did not explicitly mention bankruptcy, it did acknowledge that some passenger rights may apply under EU Air Passenger regulations and directed claims to the appointed administrator.
The airline also suggested that passengers check for rescue fares from other carriers and apologized for the inconvenience caused by the sudden closure. The news of Play Airlines’ closure has reportedly caused chaos for both passengers and employees. The carrier, which was founded in 2019, had its base at Keflavik International Airport near Reykjavik, Iceland’s capital.
According to Gudjon Helgason, a spokesman for the airport, the closure affected 1,750 passengers on September 29. The Independent also reported that 500 employees were let go as a result of the airline’s sudden closure. Despite this, Play Airlines is still promoting “30% off flights to Iceland” on its website’s homepage.
In February 2025, Play Airlines released its 2024 “Financial Results,” which showed that the carrier served 1. 6 million passengers in 2024. The company also reported improvements in its cash position, business prospects, and customer satisfaction compared to the previous year. CEO Einar Örn Ólafsson stated that their main focus in 2025 was to maximize cost efficiency, with measures in place to reduce overhead costs by 15-20%. The airline remains committed to finding innovative ways to improve services while controlling expenses, which they believe will lead to significant improvements in their operations.
The sudden closure of Play Airlines has left many questions unanswered, and passengers and employees are still seeking answers. With the airline’s financial results showing improvements in 2024, the reasons behind its closure are unclear. However, for now, stranded passengers are advised to seek alternative flights, and former employees are left to find new job opportunities. The abrupt end of operations for Play Airlines serves as a reminder of the unpredictable nature of the airline industry and its impact on both travelers and employees.