This Low-cost Airline Just Shut Down and Cancelled All Remaining Flights—What Travelers Should Know

It’s the end of an era for a low-cost airline.

Icelandic carrier Play Airlines ceased operations and cancelled all remaining flights around the globe over the weekend, the airline announced Sunday. The decision comes months after Play suspended all flights to the United States.

“We are deeply sorry for the disruption this causes and thank you for your understanding,” the airline wrote in a statement, adding “We kindly advise you to check flights with other airlines. Some carriers may offer special “rescue fares” considering the circumstances.”

The airline recommended customers with future travel plans who purchased their ticket with a credit card to contact the card about potential refunds.

German carrier Condor Airlines told Travel + Leisure it would offer special fares to Play passengers affected by the closure in an effort to “ease the inconvenience faced by PLAY’s customers during this period of disruption.” These fares are available to or from Berlin, Paris, and Prague with flights connecting through Frankfurt until Nov. 30.

Play did not provide any specific reason for the closure, but had recently shared financial updates, including plans to shift its business to “more profitable leisure destinations.” However, Play wrote in its August disclosure it faced “softness in the Atlantic market” and reported a $15.3 million net loss for the quarter. At the time, the airline said it had expected to once again be profitable in 2026.

Play operated a hub-and-spoke model, offering discounted fares with all flights going through Reykjavik. The airline first launched in the U.S. in 2021 and at one point served Baltimore, Boston, Washington D.C., and upstate New York.

With Play’s low-cost fares leaving the market, travel experts say tickets to Iceland could soon begin to rise.

“Now that PLAY ceases to exist, legacy carriers can dominate, which may light the match to higher prices,” Katy Nastro, a travel expert at Going.comtold T+L, adding it will now open a path for Iceland’s flag carrier, Icelandairto stake a “claim to the transatlantic highway, and we can only hope that another carrier enters the game for cheaper fares’ sake.”

Aviation fans reacted with surprise at the sudden closure.

“I’m a bit in shock,” one person wrote on a Reddit forum. “Couldn’t have even guessed it.”

As of August, about 2.1 million passengers flew into Iceland’s Keflavík International Airport (KEF) this year, according to airport statistics. Immediately following Play’s announcement, the airport said 12 flights were cancelled, affecting about 1,750 passengers.

“In recent years, Play has transported numerous passengers through Keflavík Airport and has been an important link in the development of tourism in Iceland,” the airport wrote in a statementadding airport staff was “assisting PLAY passengers on site, providing updates on the situation and informing them of their rights in line with guidance from the Icelandic Transport Authority.”