PLAY, the Icelandic low-cost airline that replaced WOW Air, ceased operations on September 29, 2025, and is no longer flying.
Founded by former WOW Air executives in 2019, the carrier was offering low-budget travel options to and from Iceland.
The company operated a fleet of 8 aircraft (A320 Family) and offered connections to more than 20 EU and US destinations.
Icelandic low-cost carrier PLAY has announced the immediate closure of its operations, a shocking closure that reflects the volatility of the low-cost aviation sector in Europe. The company grounded all flights and cancelled its services.
Approximately 400 employees are laid off and thousands of travellers are left without a flight. The PLAY Airlines board extends its apologies to everyone affected by the negative consequences.
The airline, officially known as Fly Play hf., confirmed the move in a statement issued via the London Stock Exchange. The company cited a series of challenges, including poor financial performance, declining ticket sales, and internal disputes among staff following the implementation of new policies.
“The board of Fly Play has decided to cease all operations, with all company flights being cancelled,” the statement begins.
“The reasons for the decision are many, including poorer fiscal performance than expected, ticket sale has underperformed in recent weeks following negative media coverage about the company’s management, and disputes among some of the company’s staff about its adjusted policies,” the statement outlines.
As the company closes, PLAY’s management emphasized that every effort was made to avoid this decision, which comes after several months of disappointing performance in both operations and sales.
The PLAY management mentioned the declining ticket sales as a major factor contributing to its decision to cease the activity. According to the statement, this was caused by the negative media coverage of the company’s performance.
As a result, around 400 employees are expected to lose their jobs, and thousands of passengers will now need to find alternative travel plans. The decision is being managed under the European regulation on air passenger rights.
Meanwhile, the PLAY website published instructions for those who have already booked their flight with the airline. Its Website instructions read as,
Refunds and passenger rights
PLAY has announced that it will engage in talks with workers and authorities to facilitate the orderly shutdown of operations.
The airline’s closure also leaves several business partners facing financial losses. The board said that while they had placed significant hope in their updated business model, it had ultimately proven insufficient to address the deep-rooted issues facing the company. “In retrospect, they should have been implemented earlier,” the statement added.
PLAY’s directors apologised to all affected, stating: “Everything has been tried to ensure that the outcome would be different. This decision is the most difficult in the situation.”
News on Play Airlines from the past.....
