Another low-cost airline has gone bust – here’s what you need to know about your flights
Flights cancelled as low-cost airline shuts down
- Play, a low-cost Icelandic airline, has ceased operations, leading to the cancellation of all flights and the loss of approximately 500 jobs.
- The airline, which commenced flights in 2021, operated for about five years and follows the earlier failures of Icelandic carriers Primera Air and Wow Air.
- Its collapse is primarily due to substantial financial losses, including a reported $66m (£49m) loss in 2025, despite previous optimistic forecasts of profitability.
- Around 120,000 passengers with future bookings are affected and are advised to seek alternative travel, with rescue fares expected from airlines such as Icelandair and easyJet.
- Affected passengers may be eligible for refunds through credit or debit card payments, or via package holiday providers, though compensation under air passenger rights rules is unlikely.