Budget Icelandic carrier PLAY has ceased operations and cancelled all flights with immediate effect.

The airline¡¯s board of directors submitted a petition to Reykjavik District Court on Monday (29 September) for PLAY to be placed into bankruptcy proceedings, with a ruling by the court expected on Tuesday.

A statement on the airline¡¯s website said: ¡°We kindly advise you to check flights with other airlines. Some carriers may offer special ¡®rescue fares¡¯ considering the circumstances.

¡°We are deeply sorry for the disruption this causes and thank you for your understanding.¡±

PLAY, which was?founded in 2019?following the demise of another Icelandic budget airline Wow Air, had been building up its transatlantic route network from its Reykjavik base to destinations in Europe and North America following the Covid-19 pandemic.

But the carrier announced in June that it would cease all flights from Iceland to North America in October and also scale back its European network following a takeover bid by the carrier¡¯s two largest shareholders.

In a message to passengers, PLAY said: ¡°If you purchased your ticket with a payment card, please contact your card issuer regarding a refund.

¡°If you booked your ticket as part of a package (flight plus accommodation or services) through a travel agency in the EEA (European Economic Area), please contact your travel agent for assistance.

¡°Some rights may also apply under EU air passenger regulations. In case of bankruptcy, claims should be directed to the appointed administrator.¡±