By Ellie Gosley

Copyright walesonline

A budget airline which previously flew from Cardiff Airport has gone bust . PLAY, a low-cost Icelandic airline, has informed passengers that it has shut down. The carrier, based in Reykjavík, said it has gone into administration and all flights are cancelled with immediate effect. An update on its website read: “All flights have been cancelled. We are deeply sorry for the disruption this causes and thank you for your understanding.” It’s understood that around 500 staff have lost their jobs. PLAY is telling passengers who have forward bookings: “We kindly advise you to check flights with other airlines.” For refunds, PLAY told passengers to contact card issuers for tickets booked with credit cards, while those with bookings as part of larger tour packages including accommodation should consult with their travel agent. They added: “Some rights may also apply under EU Air Passenger regulations. In case of bankruptcy, claims should be directed to the appointed administrator.” The airline had been in existence for about five years. It follows former Icelandic carriers Primera Air and Wow Air who failed in 2018 and 2019 respectively. The first PLAY flight between Cardiff and Reykjavík took off last October. A statement released by Cardiff Airport at that time said it “had welcomed a new lost-cost airline which is connecting Wales and Iceland directly for the first time.” It continued: “The airline is providing direct flights from Cardiff to Reykjavík, twice a week, and is providing free stopovers in Iceland for customers on its North American connections, enabling a visit to two countries in one trip.” The deal was understood to be for six weeks. The airline was no longer serving Cardiff when it went to administration on Monday. For the biggest stories in Wales first, sign up to our daily newsletter here In a statement released on Monday morning, September 29, the company’s board revealed a number of reasons for the decision, including a history of weaker-than-expected financial performance and a recent sharp decline in ticket sales. The board said: “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.” Details revealed by the board were about changes that could not deliver results needed. They added: “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.”