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Iceland’s Fly PLAY Collapses Into Administration, Grounds All Flights

The board cited prolonged weak sales following negative coverage.

Overview

  • The Reykjavík-based low-cost carrier confirmed it has entered administration with all services cancelled and aircraft grounded.
  • Local reports indicate around 400 employees have been made redundant as the company begins winding down operations.
  • Thousands of travelers have been affected by the sudden halt to flights, with no details provided on refunds or repatriation.
  • Company statements also pointed to internal disagreements and an unsuccessful business-model change introduced last autumn.
  • Founded in 2019 and flying since 2021 on a small European network, the airline had no seats on sale beyond November 1 before the shutdown.