PLAY Airlines Shuts Down Operations After Four Years of Service

PLAY Airlines, the Icelandic low-cost carrier known for its vibrant red branding, has officially ceased operations after just over four years in the airline industry. Based out of Keflavik International Airport, the airline’s shutdown comes after a series of significant reductions to its transatlantic routes, as it attempted to reposition itself primarily as a European operator. The announcement marks a notable end to a chapter in Icelandic aviation, where PLAY sought to achieve what fellow low-cost carrier WOW Air could not.

In a statement released earlier today, the airline confirmed that its board of directors made the difficult decision to end operations, resulting in the immediate cancellation of all flights. Passengers have been advised to check with alternative airlines, as some may be offering special “rescue fares” to accommodate those affected. Regarding refunds, PLAY instructed customers to contact their credit card issuers for tickets purchased with a credit card, while those who booked through travel agencies should reach out to their agents for assistance.

In addressing the closure, the airline expressed regret, stating, “Every effort was made to reach a different outcome. This decision is the most painful one imaginable and has only been taken because all other options were deemed exhausted. The Board sincerely apologizes to everyone negatively affected by this outcome.”

Factors Behind the Closure

The decision to cease operations was not the result of a single event but rather a combination of factors that contributed to the airline’s decline. PLAY acknowledged that its operational performance had failed to meet expectations, citing disappointing ticket sales in recent months. The airline pointed to “negative media coverage of its operations” as a contributing factor to its struggles.

Internally, PLAY has faced challenges, including employee dissatisfaction stemming from changes in the company’s strategy. The revised business model, introduced last fall, was initially met with optimism but ultimately proved insufficient to address the deep-rooted challenges the airline faced. The company concluded that “these changes cannot deliver results sufficient to overcome the company’s deep-rooted challenges that have built up over time.”

Comparisons to WOW Air

For those familiar with Iceland’s aviation landscape, PLAY’s trajectory is reminiscent of the downfall of WOW Air. Founded in 2019, PLAY commenced operations with its first flight in June 2021. Its goal was to establish a budget airline that could effectively serve both Europe and North America, enabling passengers to fly one-stop itineraries between the two regions.

WOW Air’s demise is often attributed to rapid expansion without sustainable planning, a lesson that PLAY aimed to learn from. Despite its efforts to pursue a more cautious growth strategy, PLAY struggled to maintain its North American routes, leading to multiple cuts in its transatlantic network. By June, the airline confirmed it would discontinue all remaining routes to the U.S., highlighting the challenges it faced in that market.

The closure of PLAY Airlines is expected to result in approximately 400 job losses, marking a somber moment in the Icelandic aviation sector. As the industry continues to evolve, the lessons learned from both PLAY and WOW Air will likely shape future endeavors in the low-cost travel market.