Just two days before the end of September, Reykjavik-based budget carrier Play Airlines abruptly filed for bankruptcy.
It canceled all flights in a move that left nearly 2,000 travelers all over Europe scrambling to get back, and thousands of others with future flights booked had little recourse other than travel insurance or a credit card refund.
“Fly PLAY has ceased operations, and all flights have been cancelled,” Play said in a statement on the bankruptcy. “We kindly advise you to check flights with other airlines. Some carriers may offer special ‘rescue fares’ considering the circumstances.”
German carrier Condor Airlines became the first to step up with discounted rescue fares for anyone who can provide proof of a booked Play ticket through Frankfurt transfers to the U.S.
Travel company to offer refund and rebooking options amid Play bankruptcy
The disruptions to those who booked trips to Iceland often run deeper than just the airfare, however.
Many of the travelers who flew into Iceland on Play also rented a van to continue their trip deeper into the country.
On Oct. 16, Icelandic camper rental company announced that it would let travelers reschedule their rental booking for up to a year from when it was made.
“Even if your reservation was non-refundable, we’re allowing customers to keep their booking fee for up to one year and use it toward a future trip,” Campervan Iceland said in a statement first reported by Reuters.
“We know many visitors have been dreaming of exploring Iceland’s landscapes for months — and we don’t want that dream to be lost because of an airline’s bankruptcy.”
Related: Popular low-cost airline canceled all flights
As many travel companies in Iceland are interconnected and depend on a steady flow of visitors to the country, all stand to lose from Play’s sudden bankruptcy and travelers who may decide to cancel their Icelandic adventures altogether.
The move comes as international visitor numbers to Iceland dropped slightly. This follows the explosion in popularity seen immediately after the world started to open up borders after the Covid pandemic.
Over the last year, the country’s tourism board and flag carrier Icelandair have launched several initiatives to continue boosting interest in the island nation with a population of just over 400,000 people.
Many travelers used Play Airlines to get to Iceland from continental Europe.
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Campervan company: Iceland remains “welcoming and reliable destination”
In its apology to customers, Play Airlines named multiple quarters of financial losses and falling traffic on its main routes as the main reasons behind the sudden need to shut down operations.
The carrier’s U.S. customers came primarily from the routes it flew to both Reykjavik and other European capitals like London, Paris, and Dublin from East-coast U.S. cities such as Washington, Baltimore, and Boston.
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“Iceland has faced many external shocks over the past decade — from volcanic eruptions to economic turbulence — yet its appeal as a destination remains strong,” the Campervan Iceland spokesperson said in a statement.
“We believe that by showing flexibility and understanding, we can help maintain travelers’ confidence and contribute to Iceland’s reputation as a welcoming and reliable destination.”