Icelandic low-cost carrier PLAY ceases operations

PLAY Airlines, the Icelandic low-cost carrier known for its red livery and based at Keflavik International Airport, has shut down after slightly more than four years of operation.

In recent months, the airline had significantly reduced its transatlantic routes as it attempted to refocus its business on the European market.

In 2025, the airline became privately owned and shifted its focus toward expanding wet-lease operations, as its regular scheduled services took a lesser priority.

PLAY pointed to a range of factors behind its eventual shutdown, bringing to a close a hopeful chapter in Icelandic aviation when the ambitious young startup sought to achieve what the fellow low-cost carrier WOW Air could not.

In a statement released earlier this morning, PLAY confirmed that its board was calling it quits.

The move has resulted in the cancellation of all of its flights, with PLAY advising passengers "to check flights with other airlines, [as] some may offer special 'rescue fares' considering the circumstances."

"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. The Board sincerely apologizes to everyone negatively affected by this outcome,” the statement said.

PLAY was founded in July 2019 as WAB Air (We Are Back) by former Wow Air executives Arnar Már Magnússon and Sveinn Ingi Steinþórsson.

PLAY’s presence in Canada

Some travellers in Ontario might recognize PLAY, which launched its Canadian business in the summer of 2023, flying from Hamilton’s John C. Munro Airport to European cities, like London, Paris and Berlin, via its hub in Reykjavik.

The carrier’s inaugural flights from Hamilton, ON began in June 2023 with tickets as low as $169 to 13 destinations in Europe.

However, PLAY’s presence in Canada was brief, with its final flight from Hamilton taking place in April, less than two years after it began operations.

Don't miss a single travel story: subscribe to PAX today!  Click here to follow PAX on Facebook