Another budget airline is shutting down operations in Canada, leaving passengers scrambling to adjust their travel plans.
Iceland-based Play Airlines has announced it will end flights from John C. Munro Hamilton International Airport as of April 22, 2025. The airline’s website no longer lists flights to Reykjavík from Hamilton after that date.
A spokesperson for Play Airlines confirmed the closure, stating that passengers are being notified of the change and will have the option to request a refund. The notification process is expected to be completed by the end of the week.
Play Airlines operates a hub-and-spoke model, connecting North American and European destinations through its base at Keflavik Airport in Iceland. The model, however, struggled to meet expectations in the competitive North American market.
Last fall, the airline shifted its focus toward leisure destinations in southern Europe, adding Portugal to its network in August 2024. “Unfortunately, the frequency of North American flights had to be reduced to align with the updated schedule, leading to the cancellation of our Hamilton operations,” the spokesperson explained. They attributed the decision to poor financial performance and increased competition in the transatlantic market, which impacted demand for connecting flights.
Play Airlines entered the Canadian market in the summer of 2023, offering low-cost options for travelers to Europe with an opportunity to extend layovers in Iceland for up to 10 days. However, its brief tenure in Canada underscores the challenges faced by budget carriers in sustaining profitability.
This announcement follows similar developments with other low-cost airlines in Canada. Lynx Air ceased operations in February 2024, and WestJet discontinued its Swoop brand in mid-2023.
Passengers with flights booked beyond April 22 are advised to contact the airline for refund options or alternative travel arrangements. As one of the last discount airlines in Canada exits the market, travelers may face higher costs and fewer options for transatlantic travel.

