Thousands of travellers were impacted, and hundreds of workers were left facing redundancy after a low-cost carrier announced it was closing down.

Icelandic airline Fly PLAY, headquartered in Reykjavík, confirmed it had entered administration and all services have been grounded.

A statement on the carrier's website read in September: "Dear passenger, Fly PLAY hf. has ceased operations, and all flights have been cancelled.

According to reports in local news reports, as many as 400 people lost their jobs.

PLAY was established in July 2019, commencing operations from its base at Keflavík International Airport, Reykjavik, in June 2021. The carrier initially served six European destinations: Alicante, Tenerife, London, Paris, Copenhagen, and Berlin.

PLAY also ran services between London and Reykjavik, though prior to today's announcement no seats were available for purchase beyond November 1.

The board of PLAY said in a statement at the time: "The board of Fly Play hf. has decided to terminate operations, and all of the company's flights have been cancelled. The company will work closely with authorities and employees to implement the necessary steps for winding down operations.

"There are many reasons behind this decision. The company's performance has long fallen short of expectations, ticket sales have been poor in recent weeks and months following negative media coverage, and internal disagreements among some employees regarding strategic changes have further strained the situation."

Information disclosed by the board concerned modifications that failed to produce the required outcomes. They added: "Last fall, Play introduced a new business model that initially inspired significant optimism.

"Unfortunately, it has now become clear that these changes cannot deliver the results needed to overcome the airline's deep-seated financial troubles. In hindsight, these measures would have needed to be implemented much earlier."