Icelandic low‑cost airline PLAY entered administration and ceased operations on September 29, 2025, with all flights cancelled and around 400 staff affected
Hundreds of workers were made redundant after a low-cost carrier announced it had entered administration.
Icelandic airline PLAY, headquartered in Reykjavík, confirmed it had ceased operations and grounded all its flights last September. A statement on the carrier’s website at the time read: “Dear passenger, Fly PLAY hf. has ceased operations, and all flights have been cancelled.”
According to local media outlet RUV, the move resulted in 400 people facing redundancy, with the company “trying to pay staff their wages”. It is unclear whether the affected employees have received their full payments.
PLAY was established in July 2019, starting operations from its base at Keflavík International Airport, Reykjavik, in June 2021. The carrier initially served six European destinations: Alicante, Tenerife, London, Paris, Copenhagen and Berlin. PLAY also ran services between London and Reykjavik, although prior to the announcement there were no seats on sale after November 1.
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The board of PLAY said in a statement at the time: “The board of Fly Play hf. has decided to terminate operations, and all of the company’s flights have been cancelled. The company will work closely with authorities and employees to implement the necessary steps for winding down operations.
“There are many reasons behind this decision. The company’s performance has long fallen short of expectations, ticket sales have been poor in recent weeks and months following negative media coverage, and internal disagreements among some employees regarding strategic changes have further strained the situation.”
Information disclosed by the board concerned modifications that failed to produce the required outcomes. They added: “Last fall, Play introduced a new business model that initially inspired significant optimism.
“Unfortunately, it has now become clear that these changes cannot deliver the results needed to overcome the airline’s deep-seated financial troubles. In hindsight, these measures would have needed to be implemented much earlier.”
