The carrier was formed following the demise of WOW Air and took off in 2021, making Stansted its UK home. It also launched services from Glasgow and Liverpool.
It flew to the US and Canada, including to New York, Baltimore/Boston, Boston and Toronto. Flights operated via Iceland's Keflavik International airport.
However, the airline on Monday (29 September) confirmed it has ceased operations and that all scheduled flights had been cancelled.
"We kindly advise you to check flights with other airlines," said Play in a message to customers. "Some carriers may offer special 'rescue fares' considering the circumstances."
Play is encouraging anyone who booked by card to contact their card issuer regarding refunds. Anyone who bought Play flights via a package have been told to contact their travel agent.
"We are deeply sorry for the disruption this causes and thank you for your understanding," it added.
Iceland's transport authority also confirmed the failure, as did Keflavik International.
The failure prompted the Foreign Office to update its travel advice for Iceland. "Play Airlines has ceased operation," said the FCDO.
"Visit the Play Airlines website for more information. If you were due to travel with Play Airlines, check with alternative airlines for a replacement flight."
The CAA later confirmed Play was licensed to operate services from Stansted and Liverpool airports, and currently operated a four-times-weekly Stansted-Reykjavik (Keflavik) service.
Play Airlines (Iceland) has ceased operations," said the CAA. "All Play Airlines operated flights are now cancelled. Therefore, please do not go to the airport as flights will not be operating. Play Airlines customers are therefore urged to make their own alternative travel arrangements if required."
CAA spokesperson Andrew McConnell said: "It’s always unfortunate when an airline ceases operations, and we understand that Play Airlines’ decision will be unsettling for its employees and customers. UK customers seeking the latest information are advised to visit the Civil Aviation Authority’s website."
