REYKJAVÍK, ICELAND – Play Airlines, a low-cost Icelandic carrier, ceased operations abruptly on Monday, September 29, 2025, leaving thousands of passengers stranded across multiple airports and disrupting travel plans for the upcoming weeks.
The airline, known for its budget-friendly fares connecting North America and Europe via Iceland, issued a statement early this morning confirming the immediate cessation of all flights. The announcement cited “unforeseen financial challenges” and “untenable market conditions” as the primary reasons for the collapse.
Passengers at Keflavík International Airport (KEF), as well as key hubs in Europe and the United States, were met with canceled flight boards and confusion. Many learned of the airline’s folding only upon arrival at the airport or through social media.
“We just checked in our bags when the screens went red with ‘canceled’ next to our flight,” said Sarah Jenkins, a passenger attempting to fly from Boston to Paris. “No one from Play Airlines was here to tell us anything. It’s a nightmare, and now we’re stuck trying to figure out how to get home.”
The airline’s collapse marks another turbulent period for the Icelandic aviation sector, following previous high-profile failures of budget carriers. Experts suggest a combination of rising fuel costs, intense competition, and a highly seasonal market contributed to Play Airlines’ difficulties.
Authorities in Iceland have urged stranded passengers to contact their credit card companies or travel insurance providers for potential refunds or assistance with alternative travel arrangements. However, the immediate priority for many is securing a flight on another carrier, often at significantly higher last-minute prices.
“Our immediate focus is on assisting affected passengers to the best of our ability, though our resources are limited given the sudden nature of the closure,” stated a representative for the Icelandic Transport Authority, who requested anonymity as investigations are ongoing. “We advise passengers to monitor official airport channels and explore all available options for rebooking.”
The Icelandic government has not yet indicated whether it will intervene to repatriate stranded travelers. The sudden shutdown has also raised concerns about the impact on Iceland’s tourism industry, which relies heavily on accessible and affordable air travel.
Passengers holding future tickets with Play Airlines are advised that operations have ceased permanently and to seek refunds through their payment providers or travel insurance. The airline’s website has been updated with a brief notice regarding the cessation of services.
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