Fly Play Cancels All Flights After Declaring Bankruptcy

Icelandic low-cost airline Fly PLAY hf., commonly known as PLAY, has declared bankruptcy and ceased all operations with immediate effect, cancelling every scheduled flight. The airline posted a brief message on its website confirming the shutdown:

 

"Fly PLAY hf. has ceased its operations and all flights have been canceled."

The announcement follows a prolonged period of financial difficulty and a restructuring process that ultimately failed to reverse the company’s downward trajectory.

Founded in 2019, PLAY had positioned itself as the successor to Iceland’s tradition of budget carriers, leveraging Keflavík International Airport as a transatlantic hub connecting Europe and North America. Over the years, the airline operated a fleet of Airbus aircraft and became a popular choice for low-cost transatlantic travel. It offered direct connections from several Spanish airports to Reykjavik, among other destinations.

Despite carrying millions of passengers, PLAY consistently reported negative financial results, which ultimately led to the collapse of the airline.

What This Means for Passengers

The sudden shutdown has disrupted the travel plans of thousands of passengers, many of whom are now seeking refunds or alternative arrangements. Affected travelers are entitled to request a full refund for their tickets. However, given the bankruptcy proceedings, direct reimbursement from the airline may be delayed or blocked.

Passengers who purchased tickets using credit or debit cards are advised to contact their bank to initiate a chargeback process. It is important to keep all booking and payment documentation. Those who booked flights as part of a package holiday should file claims through their tour operator.