By Alice Murphy

Copyright metro

Fly Play’s iconic red Airbus A320neo passenger aircraft on the tarmac at Athens International Airport (Picture: Getty Images)

Icelandic airline Fly Play has announced it is closing with immediate effect. The company has grounded all flights and cancelled all services, stranding thousands of passengers and putting hundreds of people out of work.

The low-cost carrier, officially known as Fly Play hf., confirmed its sudden closure in a statement issued through the London Stock Exchange on Monday morning.

As a result, an estimated 400 people will lose their jobs, the company said, and travellers with existing bookings will need to reorganise their return flights.

In a statement on its website, the airline said: ‘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.’

Until today, Fly Play operated routes from London Stansted and Liverpool to Keflavik Airport, just outside the Icelandic capital Reykjavik.

Aviation bloggers in Ireland are reporting on X that a Play Airbus 320 is still on the tarmac at Dublin Airport after its outbound flight was cancelled.

Fly Play’s directors apologised to all affected, saying: ‘Everything has been tried to ensure that the outcome would be different. This decision is the most difficult in the situation.’

The company cited a series of challenges, including poor financial performance, declining ticket sales, and internal disputes among staff following the implementation of new policies.

Attempts had been made to save the airline in recent years. A 2024 restructuring that shifted focus to Europe, cut US routes, and relocated operations to Malta was unsuccessful.

Shares in Fly Play had fallen 55% from the beginning of the year.

The board said it will work closely with authorities and employees to implement necessary measures to wind down operations.

I had a flight booked with Play — what are my rights?

According to Citizens Advice, if the company you purchased a product with stops trading, or goes out of business, ‘you might end up without the item your paid for.’
Citizens Advice recommend attempting to contact the company directly, suggesting calling, or writing to explain what you paid for, and asking for a refund.
Citizens Advice also says you should ‘always’ register a claim as a creditor on the Gov.uk website. You’ll be added to a list of all the people the company owes money to.
If your Play flights were booked as part of a holiday, most UK package holidays are covered by the ATOL scheme (Air Travel Organiser’s Licence), which means you’ll be entitled to a full refund if you haven’t yet travelled, or help getting home if you are already abroad.
You are generally entitled to a refund within 14 days of the cancellation, according to Citizens Advice.
It’s also important that you check your travel insurance too. Some policies may cover additional costs for cancellations.
Finally, if you paid with a credit card you can apply for a Section 75 claim, which means your credit card provider is also liable to help you resolve the issue.
For more information, visit Citizens Advice.

Do you have a story to share?

Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.