Icelandic low-cost carrier PLAY has ceased operations with immediate effect, cancelling all flights and leaving thousands of passengers stranded. Around 400 staff are also set to lose their jobs as the airline winds down just four years after launching.
Liverpool Flights Axed at the Last Minute
The decision comes only days before PLAY was due to resume its winter-only service between Liverpool and Reykjavik, which was scheduled to run from 3 October to 29 November 2025. The route had first been introduced in 2022 and was expected to attract both UK holidaymakers heading for Iceland’s dramatic landscapes and Icelandic football fans travelling to Anfield and Goodison Park.
PLAY had already scaled back its UK operations earlier this year, scrapping plans to continue Liverpool flights beyond 2025 as part of a wider restructuring.
What Passengers Should Do
PLAY has advised customers who booked flights using credit cards to contact their card issuer for refunds. Those who booked flights through tour operators or as part of a package holiday should reach out to their travel agent for assistance.
The airline also noted that some rival carriers may offer special “rescue fares” to help stranded passengers return home.
Why PLAY Collapsed
In a statement released on 29 September, PLAY’s board cited several factors behind its sudden shutdown:
- Consistently weak financial performance since launch.
- A recent sharp decline in ticket sales, partly fuelled by negative media coverage.
- Internal disagreements over the airline’s new business model introduced last year.
While that model initially gave hope, the board admitted it was implemented too late to save the airline.
End of a Short-Lived Airline
Founded in July 2019 and launching flights from Reykjavik in 2021, PLAY aimed to offer affordable links between Iceland, Europe, and North America. Despite initial optimism and expanding routes, the airline struggled to maintain profitability in an increasingly competitive market.
With PLAY’s grounding, the UK loses another connection to Iceland – and Liverpool John Lennon Airport sees the abrupt end of a route that had been eagerly awaited for its seasonal restart this week.
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