Air travelers have endured all kinds of disruptions the past few years, but hundreds of would-be passengers got an especially startling message Monday: The airline they were expecting to fly with had shut down.
Travelers who had booked tickets with low-cost Icelandic airline Play were told Monday that the airline had ceased operations and that all of its flights were canceled effective immediately. If any individuals were stranded, the company said, they should check for alternatives with other airlines.
“Dear passengers,” a notice from the airline said. “Fly PLAY has ceased operations, and all flights have been canceled.” Some airlines may be willing to offer stranded passengers discounted tickets, or “rescue fares,” the airline advised. It said in its statement that passengers who purchased their plane tickets using credit cards could contact their card issuers for refunds.
Play operated flights between Reykjavik, Iceland, and cities in Europe, Canada and the United States. Gudjon Helgason, a spokesperson for Keflavík Airport near Reykjavik, said the airline’s closure affected about 1,750 passengers on 12 flights on Monday.
Play flights that had been scheduled to fly to Baltimore; Barcelona, Spain; and Lisbon, Portugal, were canceled, as were flights to Reykjavik from cities including Paris, London and Copenhagen, Denmark.
Helgason said he did not know how many people booked on those flights had been in the middle of their trips or were stuck in destinations away from home.
In a statement, Helgason said that Keflavík Airport immediately activated its contingency plan for airline cessation. Airport staff members were assisting passengers and informing them of their rights in line with guidance from the Icelandic Transport Authority, the statement said.
“Outstanding debts owed by PLAY to Keflavík Airport are limited to the months of August and September,” the statement said. Isavia, which manages the airport, is reviewing available legal options to pursue collection of these claims, it added.
Play, which launched in 2021, aimed to fill a void left by the collapse of WOW Air, another Icelandic budget airline, which went bankrupt in 2019.
Play carried 1.6 million passengers last year, and it had 10 aircraft in its fleet and 42 destinations in its route, according to its annual financial results, published in February. About 40% of passengers flew Play to connect to other destinations beyond Iceland.
In its latest quarterly financial results, published last month, Play acknowledged it was facing challenges, with headwinds including unfavorable exchange rates, lower demand and the extended downtime of an aircraft because of engine maintenance.
The company’s earnings before interest and taxes was “substandard” — negative $31 million last year — it said. But Einar Orn Olafsson, Play’s CEO, said in February that he was optimistic that strategic changes, including shifting to serving more vacation destinations, would drive higher revenue in 2025. He did not respond to a request for comment Monday.