Fly Plays decision is effective immediately. The thousands of affected passengers must find alternative ways to get home to Iceland, the company announces. About 400 employees will lose their jobs as a result of the decision.
The background is poor finances and that ticket sales have been weak in recent times.
There is a clear winner of the announcement. Competitor Icelandair's stock price surges on the stock exchange in Reykjavik by around 30 percent.
