By Bethany Gavaghan,Courtney Eales

Copyright walesonline

Budget carrier PLAY has abruptly shut down, grounding all aircraft and cancelling every scheduled service without warning. The collapse is set to strand thousands of travellers whilst putting roughly 400 staff members out of work. The Icelandic airline’s demise comes merely four years after beginning operations. A statement posted on the company’s website reads: “Dear passenger, Fly PLAY hf. has ceased operations, and all flights have been cancelled. We kindly advise you to check flights with other airlines. “Some carriers may offer special ‘rescue fares’ considering the circumstances.” PLAY has advised passengers to contact their credit card providers for ticket refunds, whilst those who booked through package holiday operators should get in touch with their travel agents, reports the Liverpool Echo . For the biggest stories in Wales first, sign up to our daily newsletter here The carrier was established in July 2019 and began flying from its Keflavík International Airport base in Reykjavik during June 2021. Earlier this year in June, Travel Gossip reported that PLAY was axing its Liverpool to Reykjavik route in November 2025 as part of company restructuring efforts. The seasonal Liverpool-Reykjavik connection, which started in 2022, was scheduled to begin its brief winter programme this week on October 3, running through until November 29. PLAY also ran services linking London with Reykjavik, though prior to this week’s closure announcement, no tickets were available for purchase beyond November 1. When PLAY’s Liverpool operations were announced, CEO Birgir Jónsson declared: “Iceland’s extraordinary scenery, rich wildlife and bustling beer scene makes for an epic weekend away and we can’t wait for those in the North West region of the UK to come and experience it. “We hope that football mad Icelanders will be welcomed much the same as they travel to Liverpool in search of the famed atmosphere of Anfield and Goodison Park.” However, in a statement issued on Monday morning, September 29, the firm’s board disclosed several factors behind their decision, citing a track record of disappointing financial results and a recent dramatic drop in bookings. The board announced: “The board of Fly Play hf. has decided to terminate operations, and all of the company’s flights have been cancelled. The company will work closely with authorities and employees to implement the necessary steps for winding down operations. “There are many reasons behind this decision. “The company’s performance has long fallen short of expectations, ticket sales have been poor in recent weeks and months following negative media coverage, and internal disagreements among some employees regarding strategic changes have further strained the situation.” Information disclosed by the board concerned modifications that failed to produce the required outcomes. They continued: “Last fall, Play introduced a new business model that initially inspired significant optimism. “Unfortunately, it has now become clear that these changes cannot deliver the results needed to overcome the airline’s deep-seated financial troubles. In hindsight, these measures would have needed to be implemented much earlier.”