Icelandic low-cost airline Fly PLAY shut down on Sept. 29, 2025, canceling all flights and leaving 400 employees jobless.

Fly PLAY, an Icelandic low-cost airline founded in 2019, ceased operations on September 29, 2025, canceling all flights and grounding its fleet. The shutdown, citing ongoing financial struggles, declining passenger numbers, negative media coverage, and staff dissatisfaction, leaves around 400 employees jobless and disrupts travel for thousands. Despite a revised business model and a record unit revenue in August 2025, passenger volume dropped significantly year-over-year. Customers with credit card payments may get refunds, package travelers can seek alternatives or refunds, but past disruptions may not qualify for compensation due to insolvency. Other airlines, including Icelandair and easyJet, are offering rescue fares.