Sudden suspension due to bankruptcy or strike by an airline or airport

Play passengers who are abroad are advised to check the possibility of flights with other airlines to return home on their own.

You can read more about the rights of passengers on the site of the Icelandic Transportation Authority.

Yes, individuals should book a new flight themselves with another airline. However, those who have purchased a package tour are insured through the travel agency with which they bought the tour; passengers are advised to contact them.

The Transport Authority has been exploring the willingness of other airlines to offer Play passengers special rescue fares. This is done in accordance with a statement by the International Air Transport Association, IATA. Information on this will be published on the Transport Authority's website as soon as it becomes available.

Debet or credit cards – Passengers who purchased tickets either with credit or debit cards may apply for a refund to their card company or bank. In some cases, the same may apply to other payment methods (e.g. Netgíró).

Package tours – Passengers who bought their trip from a travel agency that sold the airline ticket as part of a so-called package tour (i.e. a combined trip where a flight is sold together with accommodation or other service components) are entitled to repatriation on the basis of pan-European rules on package tours. Passengers are advised to contact their travel agency.

Gift certificates, bank transfer, cash – If you paid with a gift certificate, bank transfer, or cash, you must file a claim with the company’s bankruptcy estate.

You may apply for a refund to the card company or bank, if the ticket was paid for with a credit or debit card. Information about chargebacks within the EU/EEA can be found here.

Several banks have already issued instructions on passenger chargebacks for those who paid with a payment card:

• Arion banki

• Indó

• Íslandsbanki

• Landsbankinn

More about passenger rights on the Transport Authority’s website and on the Consumer Agency’s website.

Passengers who bought their trip from a travel agency that sold the ticket as part of a so-called package tour (i.e. a combined trip where a flight is sold together with accommodation or other service components) are entitled to a new flight. Passengers are advised to contact their travel agency.

As of now, no decision has been made on that.

If additional costs arise from extending a stay, e.g. more nights at a hotel and/or more days with a rental car, passengers are advised to check their insurance. Passengers may have a claim against the airline´s bankruptcy estate.

According to information from Play, 9,300 passengers were abroad on September 29th and expected home within the next seven days from 22 airports. Just over 9,000 passengers were in the same situation in Iceland. In total, more than 18,000 were stranded.

No information on total number of sold tickets are available.

Play management has stated that about 400 people will lose their jobs when the airline ceases operations.

On its website, the Directorate of Labour advises everyone to contact their trade union, which will assist with claims to the wage guarantee fund. It is possible to apply for unemployment benefits through the Directorate of Labour’s My Pages.

The Icelandic Transport Authority has exercised regular oversight of the airline’s finances, according to EU Regulation No. 1008/2008. The purpose is primarily to assess whether airlines can ensure aviation safety at all times. Whether the airline in question can finance flight training, maintenance, and other matters related to flight safety.

For the past year, the authorities have regularly been informed on financial oversight of the airline and held meetings on the situation with representatives of the Icelandic Transport Authority and designated experts on financial oversight.

Air passengers have a claim against Fly Play hf. based on the Regulation on Air Passenger Rights. In the event of bankruptcy, such claims must be declared to the airline's bankruptcy estate.

Claims against the bankruptcy estate of Fly Play hf. must be sent to:
Arnar Þór Stefánsson, liquidator at LEX ehf., Borgartún 26, 105 Reykjavík or to the email address krofulysing@lex.is.

Claims must be declared to the estate within four months of the summons of the liquidator, which was published on 2 October 2025.