PLAY ceases operations and files for bankruptcy
PLAY ceased (29-Sep-2025) operations and suspended all services. PLAY stated: "There are several reasons for this decision, including: the company's performance has long been weaker than expected, ticket sales have been poor in recent weeks and months following negative media coverage of its operations, and there has been discontent among some employees due to changes in the company's strategy". PLAY said its revised business model, introduced in autumn 2024, did not deliver results sufficient to overcome the company's "deep-rooted challenges" that built up over time. PLAY stated: "In hindsight, the new business plan should have been implemented earlier". PLAY's board submitted a petition to the Reykjavik District Court for the company to be placed into bankruptcy proceedings. A ruling is expected to be issued on 30-Sep-2025. Reykjavik Keflavik International Airport activated its contingency plan for airline cessation. 12 PLAY services were cancelled at the airport, impacting approximately 1750 passengers. Outstanding commercial debts owed by PLAY to Keflavík Airport are limited to the months of Aug-2025 and Sep-2025. Isavia is reviewing available legal options to pursue collection of these claims. [more - original PR] [more - original PR - II] [more - original PR - III] [more - original PR - IV]
Background ✨
PLAY had undertaken a major strategic shift since 4Q2024, reducing its trans-Atlantic and connecting services in favour of point-to-point leisure routes and ACMI leasing, including relocating operations to Malta and focusing on cost optimisation. Despite this, it forecast widening losses in 2025, citing weaker trans-Atlantic demand and operational challenges, and underwent a leadership-led takeover attempt with plans to discontinue North American flights from Oct-2025 and surrender its Icelandic AOC1 2 3.