It’s the end of the runway for one of Europe’s most buzzed-about budget airlines.
Icelandic low-cost carrier PLAY Airlines abruptly ceased operations this week, cancelling every remaining flight worldwide and stranding thousands of passengers.
“Dear passengers, Fly PLAY has ceased operations, and all flights have been canceled,” the airline wrote in a notice on its website, apologizing for the sudden disruption.
What travelers need to know
- If you booked with a credit card: You may be able to request a refund through your card issuer.
- Rescue fares: Germany’s Condor Airlines has stepped in to offer special fares for stranded Play passengers, including flights to/from Berlin, Paris, and Prague through November 30.
- Other carriers: Icelandair has added some additional service between Keflavík Airport (KEF) and Europe, but so far is not offering discounted fares to Play customers.
According to Icelandic officials, about 18,000 passengers were booked to fly with PLAY in the coming week, including many U.S. travelers.
On the day of the shutdown alone (Sunday), 12 flights were cancelled, affecting about 1,750 people.
PLAY first launched U.S. service in 2021 and at one point connected New York Stewart International Airport (SWF) in the Hudson Valley to Iceland and Europe with eye-catching fares sometimes under $200.
Though those flights had already been suspended, the airline’s worldwide collapse could now push transatlantic ticket prices higher with one less budget option in the market.
As travel expert Katy Nastro told Travel + Leisure: “Now that PLAY ceases to exist, legacy carriers can dominate, which may light the match to higher prices. This opens the path for Icelandair to stake its claim to the transatlantic highway.”
PLAY’s shutdown comes just six years after the collapse of fellow Icelandic budget airline Wow Air in 2019.
Both followed the same model: deeply discounted fares via Iceland with fees for add-ons.
But both struggled with profitability in the competitive transatlantic market.
PLAY had been attempting to pivot toward more leisure-focused routes in Europe, but the airline posted heavy losses in 2024 and 2025 and had recently cut all U.S. service, including New York, Boston, and Baltimore.
The carrier operated just 10 aircraft and flew to 42 destinations at its peak.
If you booked a PLAY flight recently, contact your credit card company right away and check whether Condor or another carrier is offering rescue fares.
And if you’re planning a trip to Iceland or Europe in the future, brace yourself: with PLAY gone, cheap fares to Reykjavik may be much harder to find.