It’s happened again. The Icelandic low-cost airline PLAY has announced the immediate suspension of all operations, leaving passengers stranded and all future flights cancelled.

The airline, which launched in 2019, cited heavy financial losses and poor ticket sales as the reasons for its abrupt shutdown. The sudden collapse is a tough reminder of the challenges facing smaller airlines, particularly those operating in the competitive transatlantic market.

What to Do If You’re Stranded

If you are one of the passengers left without a ticket, the airline’s advice is to seek alternatives. Several airlines, including Icelandair, are considering offering “rescue fares,” which are discounted tickets for those affected. It’s a good idea to check for these fares with other carriers on your route.

For a refund, the process depends on how you paid:

• Credit Card: Contact your credit card issuer to begin the refund process. This is often the most direct route to getting your money back.
• Package Holiday: If your flight was part of a package deal, you must contact your travel agency. They are responsible for making alternative arrangements or providing a refund.
• EU Passenger Rights: You may also be entitled to certain rights under EU air passenger regulations. However, because this is an insolvency, compensation for cancellation is unlikely.

Bottom Line

The collapse of PLAY is a difficult situation for its passengers and employees alike. It also highlights the continued difficulty of making the low-cost transatlantic business model work, especially for airlines based in Iceland, following the similar failure of WOW Air.