Icelandic airline Play bankrupt, all flights cancelled

Icelandic low-cost carrier Play has ceased operations and canceled all flights with immediate effect, the company said Monday. In a statement filed to the stock exchange, the board cited prolonged underperformance, weak ticket sales in recent weeks following negative media coverage, and internal discontent over strategy changes.

“Thousands of passengers will need to reorganize their return journeys” and about 400 employees will lose their jobs, the board said, adding that Play will work with authorities and staff on an orderly wind-down.

Play’s board and management said they had “made every effort” to reach a different outcome, but concluded that “all other options were deemed exhausted,” and apologized to those affected.

The airline, founded in 2019, had positioned itself as a low-fare competitor on routes linking Iceland and Europe (and previously North America) before today’s decision to halt operations.

What this means for travelers: All scheduled Play flights are canceled from today; passengers are being told the company is shutting down and to make alternative arrangements as authorities and the airline coordinate next steps during the wind-down.