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Fri, Oct 03, 2025

Iceland-Based Budget Airline Shuts Down, Cancels All Flights

Unexpected Decision Leaves Travelers Stranded Abroad

In a single announcement, ultra-low-cost airline Play revealed that it would be shutting its doors and cancelling all future flights. This leaves paying customers, some already in their destinations, scrambling for last-second tickets.

Until now, Play had been operating transatlantic services to Baltimore, Boston, Washington Dulles, and Newburgh, New York, linking those airports to destinations across Europe via Iceland.

In a short public statement, Play apologized for the disruption but offered no path to rebooking. Instead, it directed travelers to search for flights with other airlines, some of which may provide so-called “rescue fares” for stranded passengers. Embassies are also standing by for customers abandoned overseas.

Refunds will seemingly depend on how tickets were purchased. The airline advised travelers who booked directly with a payment card to contact their card issuer for reimbursement. Those who purchased packages that included flights and accommodations through travel agencies in the European Economic Area were told to seek help from those providers. Lucky for EU passengers, regulations may allow additional compensation in some cases… though in the event of bankruptcy, claims will ultimately go through an appointed administrator.

The decision may have come as a shock for passengers, but the signs have been there for those looking closely. WOW Air, which once followed a similar model of funneling US passengers to Europe through Reykjavik, shut down in 2019 after uncontrolled expansion and financial losses. Play was founded in 2019 as WOW’s successor, setting it up for failure from the get-go.

The carrier tried to keep fares low while trimming costs through a narrow focus on point-to-point operations, but ultimately faced the same challenges as WOW: tight margins, rising costs, and competition from both legacy carriers and other budget airlines.

“We are deeply sorry for the disruption this causes and thank you for your understanding,” Play said.

FMI: www.flyplay.com

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