PLAY Airlines: A Sudden Fall from the Icelandic Skies
PLAY Airlines, Iceland’s low-cost carrier, abruptly ceased operations on September 29, 2025. This sudden move left thousands of passengers stranded and resulted in the layoff of approximately 400 employees.
The airline, which had been operational for a mere four years, attributed its immediate shutdown to a combination of factors. These included prolonged financial underperformance, weak ticket sales following negative media coverage, and internal staff discontent.
Established in 2021 as a successor to the defunct WOW Air, PLAY had aimed to bridge North America and Europe via Iceland’s Keflavik Airport. However, it grappled with an unsustainable business model, reminiscent of its predecessor, despite attempts to restructure operations by prioritizing European routes over transatlantic services.
The collapse of PLAY Airlines further complicates Iceland’s troubled aviation history. Interestingly, the stock of competing airline Icelandair surged by 30% following the news.
Passengers who had booked flights with PLAY are advised to:
- Contact their credit card companies for refunds
- Check with other airlines for potential rescue fares
PLAY Airlines, which had a fleet of Airbus A320neo and A321neo aircraft, transitioned to private ownership in 2025. This move coincided with an increase in wet-lease operations as scheduled flights took a backseat.
Source: www.aerotime.aero