Play Airlines Shuts Down in 2025: Reasons, Revenue & Fleet Details

Icelandic low-cost carrier Play Airlines officially shut down all operations on September 28, 2025. This sudden closure surprised thousands of travelers and left about 400 employees jobless. Play's board released an official statement announcing the shutdown, marking the end of the budget airline's four-year journey.

Why Did Play Airlines End Operation?

The main reasons behind Play Airlines' closure include ongoing financial struggles, falling ticket sales, and internal conflicts among staff. Despite a new business plan introduced in fall 2024 aimed at rescuing the company, it failed to stabilize Play’s finances. The airline had hoped that focusing more on European and Canary Islands routes, while scaling down U.S. flights, would save the business. Unfortunately, these changes came too late to reverse the trends.

Negative media coverage further hurt ticket sales, and disagreements within the team about strategic direction worsened the situation. The board admitted the exit was painful but inevitable after exhausting all other options.

Play Airlines Revenue and Financial Health

Play Airlines struggled with long-term financial underperformance. Revenue consistently fell below expectations, and share prices dropped roughly 70% since late 2024. The airline’s declining profits made survival impossible, especially facing rising competition and operational costs.

How Many Planes Did Play Airlines Have?

At the time of shutdown, Play Airlines operated a modest fleet primarily focused on short-haul and some transatlantic routes. The company managed fewer than 20 aircraft, leasing many from third parties as part of its cost-control efforts.

When and Where Was the Shutdown Announced?

The decision to cease operations was officially announced by Play’s board on September 28, 2025, with immediate effect. The announcement was made via a public statement available on their official website and through primary media outlets in Iceland.

Fly Play airlines, an Icelandic low-cost airline headquartered in the country's capital of Reykjavík, has announced its decision to cease operations, effective immediately, and all of the airline’s flights have been canceled, according to a statement released by the company.… pic.twitter.com/14i0SK1h07

— Breaking Aviation News & Videos (@aviationbrk) September 29, 2025

Impact on Passengers and Partners

All Play Airlines flights were canceled instantly upon the shutdown announcement. Thousands of passengers had to seek alternative travel plans, often on short notice. The airline urged affected travelers to contact their customer service for refunds and rebooking assistance.

Additionally, business partners and suppliers faced significant financial losses. Around 400 employees lost their jobs as part of the closure, marking a difficult chapter for the Air Operator Certificate holder as it moved operations earlier to Malta and Lithuania in hopes of restructuring.