Play Airlines (Iceland) has ceased all operations and cancelled every flight, stranding passengers who booked travel through the budget carrier. The airline served Stansted Airport and Liverpool Airport, leaving travellers across the UK scrambling for alternative arrangements.
The Civil Aviation Authority has issued urgent guidance telling passengers not to travel to airports as no flights will be operating. Andrew McConnell, spokesperson at the UK Civil Aviation Authority, said: "It's always unfortunate when an airline ceases operations, and we understand that Play Airlines' decision will be unsettling for its employees and customers. UK customers seeking the latest information are advised to visit the Civil Aviation Authority's website."
Passenger impact and refunds
According to The Independent, approximately 120,000 passengers with future bookings are affected by the sudden cessation. Passengers who purchased tickets with payment cards should contact their card issuer for refunds, while those who booked packages through travel agencies should contact their travel agent for assistance.
Play Airlines stated: "We are deeply sorry for the disruption this causes and thank you for your understanding. Some carriers may offer special 'rescue fares' considering the circumstances." The airline directed passengers to visit www.icetra.is and www.kefairport.com for additional advice and noted that some rights may apply under EU Air Passenger regulations.
The Independent reports that rescue fares are expected from airlines including Icelandair and easyJet to assist stranded passengers. Some rights may also apply under EU Air Passenger regulations, with bankruptcy claims directed to any appointed administrator.
Financial troubles and industry pattern
The Independent reveals that Play Airlines reported a $66m loss in 2025, despite previous optimistic profitability forecasts. The collapse follows a troubling pattern of Icelandic airline failures, including Primera Air and Wow Air in recent years.
Play Airlines had operated for about five years since 2021, positioning itself as a budget option for transatlantic travel. The sudden cessation highlights ongoing financial pressures facing budget carriers in the competitive aviation market.
Sources used: "bristolpost.co.uk", "mirror", "The Independent" Note: This article has been edited with the help of Artificial Intelligence.
