Play Airlines Ceases Operations; TICO Explains Compensation Fund Rules

The Travel Industry Council of Ontario (TICO) has issued a Closure Advisory after Iceland-based Play Airlines ceased operations on September 29, 2025.

TICO reminded consumers that airfare purchased directly from Play Airlines, or through a travel agency or booking website located outside of Ontario, is not eligible for reimbursement through the Ontario Travel Industry Compensation Fund (Compensation Fund). The Compensation Fund also does not reimburse consumers for the cost of replacement travel services purchased.

“Consumers who purchased Play Airlines travel services from an Ontario registered travel agency or booking website and did not receive their travel services due to the closure of the airline, may file a Compensation Fund claim for reimbursement,” the advisory stated.

The deadline for filing claims is March 30, 2026. Claims received after that date will not be valid.

Before filing with the Compensation Fund, TICO requires claimants to explore other possible reimbursement options, including credit card chargebacks and travel insurance.

“All consumers who paid by credit card and were charged by Play Airlines should contact their credit card company to request a chargeback (refund),” TICO advised. If a refund is refused, consumers must provide a letter from their credit card company stating that a credit refund will not be issued. That letter must accompany the claim.

Consumers with travel insurance must first file with their insurance company. “If the claim is refused, you must provide written proof of refusal of the claim,” TICO said.

TICO encouraged consumers to submit claims by the March 30 deadline, even if all documentation is not yet available. “Should you not be able to obtain all the required supporting documentation to substantiate your claim in a timely manner, please submit your claim to TICO with as much supporting information as possible prior to the filing deadline. Additional documentation can be submitted when it is obtained to avoid missing the deadline.”

Consumers with questions or requiring clarification are asked to contact TICO’s Claims Department at 1-888-451-8426 or [email protected].

Topics From This Article to Explore