Play Airlines: Low-cost Iceland airline carrier shuts down after four years - will passengers with flights booked get refunds?

PLAY Airlines, the Icelandic low-cost carrier based out of Keflavik International Airport, has ceased operations after just over four years in the skies. Recent months have seen the airline make drastic cuts to its transatlantic network as it looked to reposition itself as a European operator.

In a statement released earlier this morning, Icelandic low-cost operator PLAY Airlines confirmed that its board had pulled the plug and taken the difficult decision to cease the red-liveried budget carrier's operations. This has resulted in the cancellation of all of its flights, with PLAY advising passengers "to check flights with other airlines, [as] some may offer special 'rescue fares' considering the circumstances."

As far as reimbursement for the cancelled flights is concerned, PLAY has told passengers to contact card issuers for tickets booked with credit cards, while those with bookings as part of larger tour packages should reach out to their travel agent. The airline has said that it "will work closely with authorities and employees to implement necessary measures to wind down operations”.

It added: "Every effort was made to reach a different outcome. This decision is the most painful one imaginable in this situation and has only been taken because all other options were deemed exhausted. The Board sincerely apologizes to everyone negatively affected by this outcome."

Rather than having been triggered by a single event, PLAY cites a catalog of different reasons as having collectively been responsible for its decision to cease operations. For instance, the carrier says that its performance has not matched expectations, with poor ticket sales in recent weeks and months.