Icelandic travellers receive refunds after Play airline collapse

A total of 480 Icelandic travellers have received refunds for cancelled trips following the bankruptcy of budget airline Play, according to a report by Icelandic national broadcaster RÚV.

The refunds were processed through the Icelandic Travel Agency Guarantee Fund, which covers financial losses when travel companies fail. The fund confirmed that all eligible claims have now been settled.

Play, a low-cost carrier based in Iceland, ceased operations in June after filing for bankruptcy. The airline’s collapse left thousands of passengers stranded and prompted refund requests from those who had booked flights or package tours.

The Travel Agency Guarantee Fund is financed by fees from licensed travel agencies and tour operators in Iceland. It provides compensation to consumers when companies are unable to fulfil booked services due to insolvency.