What Happened To The Play Airlines Fleet? Here's What Flights Are Affected And What You Could Do If You Booked With Them

In a crushing blow to budget travel, Iceland's low-cost carrier PLAY Airlines abruptly ceased operations on 29 September 2025, filing for bankruptcy and cancelling all flights amid mounting financial losses. Thousands of passengers faced chaos, with transatlantic routes to the US and Europe vanishing overnight, sparking urgent searches for refunds and alternatives.

As the PLAY Airlines fleet sits grounded, questions swirl over its future, highlighting the fragility of low-cost carriers in today's aviation landscape.

PLAY Airlines Collapse: £43 Million Losses Trigger Bankruptcy

PLAY Airlines reported a net loss of £43 million ($66 million), underscoring years of financial underperformance. The first quarter of 2025 added a further net loss of £17 million ($27 million), while the second quarter saw £10 million ($15 million) in red ink.

These mounting losses, combined with poor ticket sales and internal staff discontent over strategic shifts, left the board with no viable options. The airline's turnaround plan, introduced in late 2024, aimed to refocus on leisure markets and aircraft leasing but failed to stem the tide.

Negative media coverage exacerbated weak demand, leading to the sudden shutdown. Around 400 employees lost their jobs, amplifying the human cost of the collapse.

Fleet Grounded Amid Shutdown Chaos

PLAY Airlines' fleet consisted of six Airbus A320neo aircraft, now idle following the cessation of operations. These planes, previously used for transatlantic and European routes, will likely be sold or leased by the bankruptcy administrator to settle debts. The fleet's grounding marks the end of PLAY's four-year run, which began in June 2021 after WOW Air's similar failure.

Prior to the shutdown, PLAY had already scaled back, ending US services to New York Stewart, Boston Logan, and Baltimore-Washington by mid-2025. European and Canary Islands routes were also discontinued, leaving no active aircraft as reported in an X Post dated 10 June 2025.

Affected Flights Impact: 1,750 Passengers Stranded

On 29 September 2025 alone, 12 flights were cancelled at Keflavík Airport, stranding approximately 1,750 passengers and disrupting transatlantic connections. All routes, including those to major US cities and European hubs, ceased immediately, affecting thousands more with future bookings.

The collapse echoes WOW Air's 2019 demise, the second such event for Icelandic low-cost carriers in six years.

Passengers are advised to contact credit card issuers for refunds if payments were made that way, or travel agencies for package deals under EEA consumer protection rules. EU air passenger rights may apply, with claims directed to the bankruptcy administrator. Alternative flights are available from carriers like Icelandair, though no special rescue fares have been confirmed.

In an X post from Flightradar24, it was stated: 'PLAY has ceased operations and canceled all flights. The airline had been trying to shift its business model, but says accumulated problems and continuing loses have forced this outcome. The airline currently has a fleet of 6 A320neos.'

PLAY's Leadership Speaks as Airline Folds

The board expressed regret, noting: 'Every effort was made to reach a different outcome. This decision is the most painful one imaginable in this situation and has only been taken because all other options were deemed exhausted.'

Former CEO Birgir Jónsson had earlier said: 'A loss is never ideal, but the good news is that the turnaround is evident.' Yet, deep-rooted challenges proved insurmountable.

Passengers are urged to monitor official sources for updates, as the bankruptcy process unfolds. This event underscores risks in budget aviation, and a prompt for travellers to consider safeguards like insurance for future bookings.