PLAY warns seismic activity is impacting short-term demand.

Icelandic budget carrier, PLAY warns that the recent seismic activity and the possibility of a volcanic eruption in the Reykjanes peninsula of Iceland over the past weeks have made headlines worldwide. No disruption has occurred to PLAY’s operation, and Iceland continues to be a safe destination for tourists. 

PLAY has, however, experienced a reduced demand due to this and especially notes that the demand for seasonal short-term bookings to Iceland has been, and will be, considerably lower in the coming period, which will impact the financial performance of the airline.  

Due to this, and the ongoing seismic situation and uncertainty, the financial year-end guidance communicated to the market in September and again in our quarter three results in October no longer applies. 

The cash position at year-end will be slightly lower than communicated but is still considered secure. PLAY is taking various actions to ensure that there is minimal effect on operational results and liquidity position, such as modifying the route network and adjusting capacity to this softer demand in the coming weeks and months. 

 

Birgir Jonsson, CEO said: “We will use the flexibility in our business model and our proven resilience to meet these new challenges, and the PLAY team is already hard at work doing just that. Over the last two weeks, we have seen some very extensive news coverage globally which has sometimes been slightly misleading and sensationalist and taken out of context, does not encourage tourists to come to Iceland, for example, on short breaks before Christmas and in the new year. In recent days, we have, however, seen the demand returning to the market, which is very positive and reassuring for the coming months but a little too late for the travel season in the coming few weeks. 

The people of the town of Grindavík have been evacuated from their homes and face many uncertainties in the run-up to Christmas. Our thoughts are with them, and I sincerely hope that this situation will be resolved quickly and that they can return home to resume their normal lives.”   

On its website, the carrier advises  Recent events in the Reykjanes peninsula in Iceland with increased seismic activity do not affect Keflavik Airport or PLAY’s flight schedule.

A state of emergency was declared in the town of Grindavík on the south coast of the Reykjanes peninsula and the town has been evacuated. The increased seismic activity may lead to an eruption which could flow peacefully in an uninhabited area as previous eruptions in the area have done, or within the town of Grindavík causing damage to infrastructure and the surrounding area. As a precaution, the town has been evacuated. An underwater eruption off the coast of Grindavik is considered unlikely. Such an eruption may produce an ash cloud. In such an event, Keflavik Airport will shut down during an assessment period of the airspace and incoming flights directed to alternate airports during the closure. 

"Safety is our top priority and the situation is being monitored closely by the relevant authorities. "

Budget airline PLAY records 85% load Factor with 164,000 passengers travelling with the carrier in September.

85% Load Factor, 164,000 passengers & PLAY Cabin Crew wins USA Today Readers´ Choice Award

PLAY carried 163,784 passengers in September, which is a 77% increase from September 2022 when PLAY carried 92,181 passengers. The load factor in September 2023 was 85%, compared to 81.5% load factor in September 2022. PLAY had an on-time performance of 85.1%. in September 2023.

Of all passengers flying with PLAY in September 2023, 22.9% were departing from Iceland, 31.6% were travelling to Iceland, and 45.5% were connecting passengers (VIA).

Delivering such a good load factor in the month of September, which is historically a slow month in travel, is notable because PLAY increased its capacity considerably by adding four new aircraft to its fleet this spring.

Average ancillary revenue continues to rise for PLAY, being 23% higher in September 2023 compared to September 2022, and the trend is looking robust for the coming months.

PLAY Wins USA Today 10Best Readers’ Choice Award

PLAY´s flight attendants have been recognized as the best cabin crew by USA Today. PLAY was nominated by USA Today and readers and fans voted for the top 10 airlines. PLAY was selected as the #1 cabin crew after four weeks of voting.  PLAY´s cabin crew is known for a friendly, accommodating and helpful service during PLAY´s flights and this award is a true testament to their outstanding work. Among the airlines that were nominated were Virgin Atlantic, Fiji Awards, Southwest Airlines, Delta Airlines, Korean Air, British Airways, Emirates, Singapore Airlines and Cathay Pacific.

PLAY Delivers a USD 12 million profit in Summer 2023

PLAY  Airlines turned a USD 12 million profit over the summer months of 2023. It is the first time the company has reported profit from operations after tax at the end of the summer season. It shows that PLAY was a profitable company for the summer and that its business model is working well.

PLAY expects to carry around 1.5 million passengers in 2023 and forecasts carrying 1.8 million passengers in 2024. PLAY has secured two additional aircraft for the year 2025, which will expand its fleet to 12 A320neo family aircraft from Airbus and is looking into further capacity increases.

Birgir Jonsson CEO said:  “It´s great to see such a strong load factor for the month of September, which is historically a slow month in the aviation industry. We continue to perform well in our key markets after seeing solid financial results over the summer months of 2023 with revenue nearly doubling from last year and the airline delivering a net profit of $12 million in the same period.

For our cabin crew to win the USA Today 10Best Readers´ Choice Award is a massive achievement that makes us all very proud of our fantastic crew. It has only been just over two years since our inaugural flight and just over one year since our first flight to the USA. We know that our cabin crew is dedicated, prioritizes safety and customer satisfaction, and makes the on-board experience fun, and the recognition from USA Today 10Best is therefore well-deserved! We’re thankful for their hard work that makes PLAY stand out around the world.

We are looking forward to the coming winter season and I know that the whole PLAY team will keep up the good work and continue delivering good results for the company and an enjoyable experience for our passengers.”

PLAY delivers a USD 12 million profit in summer 2023

PLAY Airlines turned a USD 12 million profit over the summer months of 2023.  This was revealed at the company's market update meeting during the week, where key operating figures were reviewed. It is the first time the company has reported profit from operations after tax at the end of the summer season.  It shows that PLAY is a profitable company for the summer and that its business model is working well.

The profit for the summer months of 2023, June to August, was USD 12 million compared to a USD 3 million loss in the same period last year. The turnaround therefore amounts to about USD 15 million from loss to profit. 

Revenue nearly doubled

Revenue in the summer months of 2023 was nearly double that of the same period in 2022. The company's revenue rose from USD 63 million in 2022 to USD 116 million in the summer of 2023. Despite a 70% increase in seat capacity, the company managed to increase unit revenue per seat kilometre (RASK) over the summer, a sign of how strong of a position the company has achieved in its key markets in a short period of time. PLAY had an 89% load factor in the summer of 2023, which is a much higher load factor compared to the company's main competitors.

PLAY transported 537,000 passengers this summer and had a punctuality rate of 83.9%, which shows that operations were successful even though the company's activity has grown considerably during the period. The company took in four new aircraft and added 13 destinations for the summer.

Profit in Q3

Management's estimate of the third quarter result shows that operating profit will be approximately USD 10 million compared to USD 1.3 million in the third quarter of 2022. The turnaround therefore amounts to at least USD 8.7 million between years. This estimate is based on management accounts for the first two months of the third quarter and forecasts for September results.2 Accordingly, PLAY expects to turn a profit of ca. USD 4 million in the third quarter.

PLAY estimates cash will be approximately USD 39 million by the end of the third quarter. The financial position of the company is therefore strong and the company does not need additional funds for its operations. PLAY estimates that cash balance at year-end will be around USD 28 million, and cash flow from the company´s operations is therefore neutral, after taking into account investments in the expansion of the company's fleet.

USD 34 million turnaround

PLAY expects to carry around 1.5 million passengers in 2023 and operating loss for the year will be around USD 10 million. In this context, it can be noted that the company posted an operating loss of USD 44 million in 2022, resulting in a turnaround of around USD 34 million. Furthermore, the company expects revenue of approximately USD 280 million this year. The cost per seat kilometer excluding fuel (CASK Ex Fuel) is estimated at around USD 3.7 cents for the full fiscal year 2023.

PLAY carried 184,926 passengers in August, up 70% from August 2022

PLAY reports 89% Load Factor, 184,926 passengers and two new aircraft confirmed

PLAY carried 184,926 passengers in August, which is a 70% increase from August 2022 when PLAY carried 108,622 passengers. The load factor in August 2023 was 88.9%, compared to 86.9% load factor in August 2022, and PLAY had an on-time performance of 90.1%.  

Of all passengers flying with PLAY in August 2023, 22.1% were departing from Iceland, 35% were travelling to Iceland, and 42.9% were connecting passengers (VIA).

August saw strong performance in our network with many destinations delivering over 90% load factor and some, including Prague, Toronto and Barcelona, performing at over 95% load factor.

Average ancillary revenue continues to rise for PLAY, being 33% higher in August 2023 compared to August 2022, and the trend is looking robust for the coming months.

PLAY nominated as Best Cabin Crew

PLAY has been nominated for Best Cabin Crew by USA Today. This is a great honour for PLAY, only two years from its first-ever commercial flight in June 2021.  Among the nominees are major global airlines. This nomination is a testament to the great work the cabin crew does every day providing PLAY´s passengers with excellent service and a secure and enjoyable flight.

PLAY has also been nominated for the Danish Travel Awards as the best low-cost carrier. The Danish Travel Awards have been awarded since 1996 and PLAY is again nominated among many major and well-established low-cost airlines.

Fleet Expansion and Outlook

PLAY continues to see many opportunities to grow in the market and is working on expanding its fleet of aircraft in the coming years. The airline has already signed two Letters of Intent, securing two brand-new A320neos, which will enter service in time for the summer season of 2025. Further negotiations are ongoing for added capacity in 2024 and 2025 and will be reported on when they are concluded.

PLAY is in a strong position when entering the fall and winter with a considerably higher load factor and higher yields than in the previous year. The demand from key markets is quite robust, but the airline is cautious about the possible impact of inflation and the increased cost of living on the demand in the winter months. This means that the visibility into the fourth quarter and further into the winter is relatively low, as many other airlines worldwide are reporting. 

As PLAY has previously stated, the financial performance this year has largely been in line with management expectations and forecasts that have assumed a narrow but positive operating margin (EBIT) for the full year of 2023. 

Play reports its busiest month....

Busiest month ever for PLAY. Load Factor hits 91.1% with over 191 thousand passengers flown. 

PLAY carried 191,577 passengers in July, which is a new record in the airline ‘s history. The number of passengers in July is 19% higher compared to June when PLAY carried 160,979 passengers, which was also a record month for the airline. PLAY not only broke its record for number of passengers in July but also the record for load factor which was 91.1% in July, making it the biggest month in the history of PLAY. The airline provided an on-time performance of 80.2% which is more than acceptable in the busiest month of the year in aviation.

Of all passengers flying with PLAY in July 2023, 26.8% were departing from Iceland, 32.1% were traveling to Iceland, and 41.1% were connecting passengers (VIA).

This record month of July saw strong demand in PLAY´s markets in North America with yields significantly higher than last year. PLAY´s North American destinations performed very well, with a load factor well over 90%. This strong demand from our North American markets is also evident for the  coming months. In our European markets, Copenhagen, London, Paris and the leisure destinations performed well in July with a load factor of over 90%. 

PLAY has been gaining higher market share in Iceland as both awareness and trust from the Icelandic public increases. In June 2023, 54% of all Icelanders who traveled from Iceland chose PLAY. This is a clear sign that PLAY is fast becoming the number 1 choice of the Icelandic public.

In July 2022, PLAY flew 109,937 passengers, which means July 2023 sees a 74% growth in passenger numbers from the same month last year. The July load factor also significantly improved from last year, from 87.9% in 2022 to 91.1% in 2023.

Since spring 2023, PLAY has added and/or relaunched 20 new destinations to its network.

New destination & PLAY nominated for the British Travel Awards

PLAY launched ticket sales to Frankfurt in Germany in July. PLAY´s first flight to Frankfurt will be on December 14, 2023, operating four to five flights a week over the winter period. Frankfurt will have direct connectivity to PLAY’s destinations in North America and is PLAY´s fourth destination in Germany along with Berlin, Düsseldorf and Hamburg.

PLAY is nominated as the best airline for low-cost flights at the British Travel Awards. The winners are based on the number of verified consumer votes cast. PLAY is nominated with well-established major airlines, which is a good recognition for a young airline that only celebrated its second anniversary last month.

Play takes solace in positive passenger numbers

The Icelandic budget carrier PLAY takes solace in its June performance as 160,979 people flew with the airline, a new high in its ever-so-short history. 

The airline claims its load factor for the month was 87.2% and rather impressively, 81.2% of its flights arrived on time. Of all those carried, 29.8% of passengers departing from Iceland, 25.8% were travelling to Iceland, and 44.4% were connecting passengers travelling via Iceland.

In the first six months of the year, a total of 604,670 people travelled with PLAY, an increase of 154% from the same period in 2022 when 238,053 passengers travelled with the airline. In the second quarter of 2023, 392,325 passengers travelled with them, an increase of 117% from the same period in 2022 when 181,202 passengers travelled on PLAY's planes.

PLAY began operating its fifth North American destination very late in June with the start of services to Hamilton Airport* in Toronto, Canada, on 22nd June. The airline said this new route is already experiencing very strong demand from both sides of the Atlantic. 

 

In June 2022, PLAY flew 87,932 passengers, which means June 2023 sees an 83% growth in passenger numbers from the same month last year. The June load factor also significantly improved since last year, from 79.2% in 2022 to 87.2% in 2023.

In June, and for the coming months, the demand from the USA is very strong with average yields significantly higher than last year. In June, the North American destinations performed very well, with a load factor of over 90%. The outlook for PLAY continues to be very positive, with continued high demand and increased revenue in key markets.

Youngest fleet in Europe and voted the best low-cost airline in Northern Europe.

PLAY welcomed its 10th aircraft in June. The aircraft is a brand-new Airbus A321neo and was delivered straight out of the Airbus factory in Hamburg, Germany. PLAY now has the youngest fleet in Europe, around 550 employees and serves nearly 40 destinations on both sides of the Atlantic.

Fly Play hf.: Highest-ever passenger number in a single month and an 85% load factor in May

PLAY carried 128,894 passengers in May which is the highest monthly passenger count in the airline's history. The number of passengers in May is almost 26% higher compared to April when PLAY carried 102,499 passengers. The load factor for May was 85% and 87.3% of flights arrived on schedule.

These are very positive results given the fact that May is typically a challenging month for airlines as they increase their capacity in preparation for the summer season ahead of demand as summer holidays have not yet commenced.

The traffic data for May also demonstrates significant growth from the same period last year, when PLAY flew 56,601 passengers and the load factor was 69.6%. This means that passenger numbers for May 2023 more than doubled year-on-year. 

In May, PLAY operated flights to 26 destinations, compared to 17 in May last year. Routes to and from London, Copenhagen, Paris, Boston, and Berlin had an impressive load factor of well over 90% and sunny destinations in southern Europe remain very popular. 

PLAY continued to see an increase between years in the number of passengers travelling to Iceland in May, signifying increasing international awareness and trust in the airline. Of all passengers flying with PLAY in May 2023, 27% were departing from Iceland, 25% were travelling to Iceland, and 48% were connecting passengers (VIA). PLAY is experiencing very strong demand from the USA to Europe with average yields significantly higher than last year.

28% increase in average ancillary revenue year on year and a positive outlook

May showed ongoing growth in ancillary revenues with the highest average ancillary revenue ever recorded in one month. Average ancillary revenue per passenger has grown by 28% compared to May 2022. Several factors play a role in this growth, such as various enhancements in the online booking engine and other modifications in the sales and distribution process. These factors and modifications are expected to have an even more significant impact in the coming months, driving further revenue growth.

PLAY starts Glasgow service.......

Icelandic carrier PLAY operated its inaugural service to Glasgow last Friday, which was welcomed by the airport's fire service with a traditional water cannon salute.

PLAY offer scheduled flights four times a week on Mondays, Wednesdays, Fridays, and Sundays, which will connect with PLAY's North American routes. The airline currently operates flights to Boston, Washington DC, Baltimore, and New York as well as Toronto in Canada.

PLAY will operate Airbus A320neo on the route configured with 180 seats, and this summer, PLAY's fleet will consist of 10 Airbus A320/321neo, with an average age of approximately 2.5 years. 

PLAY's motto is "Pay less, PLAY more," which means that customers can enjoy a cost-effective flight and have more to spend on their destination's fun activities. Furthermore, with a nearly 90% on-time performance rate in 2022, PLAY prioritizes passenger safety, providing a safe, reliable, and comfortable journey that doesn't break the bank. 

CEO Birgir Jónsson: "As we continue to expand our network, PLAY is proud to announce the addition of Glasgow to our growing list of destinations. With our focus on affordability and convenience, passengers can experience our on-time performance and safe, reliable service while exploring Scotland's vibrant city. We are excited to bring a new travel option to passengers, connecting them directly to and from Keflavik to Glasgow and to and from our routes across North America." 

Passenger numbers tripled in April for Iceland's PLAY

April's load factor topped 80.8%

The Icelandic carrier PLAY saw a substantial increase in passenger traffic in April, carrying a total of 102,499 passengers compared to 86,661 in March. The load factor in April was 80.8%. This represents a significant growth from the same period last year when 36,669 passengers were flown, and the load factor was 72.4%. This means that the passenger numbers for April 2023 nearly tripled between years.

PLAY’s routes to and from Barcelona and London had an impressive load factor of over 90% in April, and as before our leisure destinations were also very strong.

April continued an increase in the number of passengers travelling to Iceland, reflecting increased awareness and trust in PLAY in foreign markets. Of all passengers travelling with PLAY in April 2023, 33.5% were travelling from Iceland, 31% were travelling to Iceland, and 35.5% were connecting passengers (VIA). PLAY is committed to growing its market share in the important market segment of tourists coming to Iceland and this continued increase demonstrates a strengthening market position in the international markets. 

In keeping with the trend of very strong sales in 2023, April has proven to be yet another great sales month for PLAY.  Furthermore, the airline is experiencing a continuing growth trend in average yields and ancillary revenue.  Forward bookings remain strong, with a marked improvement in booking status compared to the same period last year. This bodes well for the airline's continued growth and success in the months ahead.

In April, PLAY maintained an impressive record of punctuality, with 85.3% of its flights arriving on schedule. This is a testament to the company's operational teams and crew, and it highlights the airline's commitment to delivering a reliable and efficient service. PLAY's punctuality has been significantly better than its major competitors over the past months, making it one of the most dependable carriers in its core markets.

Play records 80.6% load factor and carried 86,661 passengers during March

In March 2023, PLAY carried a total of 86,661 passengers with a load factor of 80.6%. The load factor was 67% and the passengers flown were 23,700. Passengers in PLAY’s network in March have therefore tripled between years. This is a significant growth from March of last year when the load factor was 67% and passengers flown were 23,700. Passengers in PLAY’s network in March have therefore tripled between years, signifying a momentous growth trajectory. 

Of the passengers in March 2023, 26% were travelling from Iceland, 39% were travelling to Iceland, and 35% were connecting passengers (VIA). March saw a significant year-on-year increase in the number of passengers travelling to Iceland. PLAY is committed to growing its market share in the important market segment of tourists coming to Iceland and this increase demonstrates a strengthening market position in the international markets.  

March was another record month in terms of ticket sales. Furthermore, the company sees a continuing growth trend in average yields and ancillary revenue. This growth in revenue further suggests that the airline’s increased capacity this year is well aligned with market demand. 

Arnar Már back to the Executive Board of PLAY

Arnar Már has returned to the executive board of the Icelandic budget carrier PLAY.  

Arnar Már Magnússon, Captain and one of the founders of PLAY  will soon be reinstated as Managing Director of the Company's Operations Division. Arnar was managing director of the division until over a year ago when he decided to return to the captain's seat full-time. Arnar Már is one of the founders of PLAY and was CEO at the start-up stage of the airline in 2019-2021 before the company launched.

Arnar will take over the managing director position from Guðni Ingólfsson, who will retire in the near future. Gudni has been managing director of the division since March 2022.

"I'm delighted to have Arnar Már back on the PLAY executive board at this point, rested and ready to join us. Arnar has been a key player in PLAY's history, being one of the founders of the company. Arnar was a powerful member of the club's management before deciding that the skies were called and it is good to have his powers back on the PLAY executive board during this important year in the club's history. I know the operations department will be in good hands with Arnar. At the same time, I would like to thank Guðni Ingólfsson very much for his hard work during the last year during the important development period of the company. I also wish him good luck in what he does," says Birgir Jónsson, CEO of PLAY.

PLAY announces new Glagow Iceland service.....

Four times a week....Glasgow - Iceland

PLAY Airlines has announced plans to launch a new service between Glasgow and Iceland beginning Friday 26 May.

With flights scheduled four times a week on Mondays, Wednesdays, Fridays, and Sundays, Glasgow will now be fully connected to PLAY's North American routes.  

PLAY currently operates flights to Boston, Washington DC, Baltimore, and New York in the United States, as well as Toronto in Canada.

Passengers can enjoy a comfortable journey on the Airbus A320neo with 180 seats, and this summer, PLAY's fleet will consist of 10 Airbus A320/321neo, with an average age of approximately 2.5 years. 

PLAY's motto is "Pay less, PLAY more," which means that customers can enjoy a cost-effective flight and have more to spend on their destination's fun activities. Furthermore, with a nearly 90% on-time performance rate in 2022, PLAY prioritizes passenger safety, providing a safe, reliable, and comfortable journey that doesn't break the bank. 

Icelandic airline PLAY turned over USD 140 million last year.

Icelandic budget airline PLAY has released its latest results for last year, which show the carrier turned over USD 140 million, delivered a negative EBIT and experienced strong revenue growth.

PLAY carried 241 thousand passengers in Q4. For the full year of 2022 PLAY carried 789 thousand passengers.

The load factor in Q4 was 80.3%. The load factor was improving throughout 2022 and resulted in 79.7% for the full year.

Q4 was operationally successful with an on-time performance of 91%.

Revenues in Q4 were USD 37.9 million compared to USD 9.7 million in Q4 2021. Full year revenues in 2022 were USD 140 million compared to USD 16 million in 2021.

Positive trends in ancillary revenues in Q4.

Negative effect of weather disruptions in Iceland in December resulted in USD 2.2 million in lost revenues and additional expenses.

The financial position of the company is healthy. Cash on December 31 amounted to USD 36.2 million including restricted cash. The equity ratio was 11.6% and the company has no external interest-bearing debt.

Earnings before interest and taxes (EBIT) were negative in 2022 by USD 44 million compared to negative USD 25 million in 2021.

Net income was negative by USD 45.5 million in 2022 compared to negative USD 22.5 million in 2021.

Shareholders’ equity was increased by USD 16 million in Q4 2022.

PLAY’s cost target of being under 4 US cents a unit (CASK ex-fuel), was reached in Q4 and was in line with the target for 2022.

36 destinations are currently on sale.

Strong sales momentum at the beginning of 2023 resulting in forward unit revenue (RASK) being higher than in 2022.

Birgir Jónsson, CEO of PLAY said:   "We are pleased to report strong growth in our revenue base and load factor in the fourth quarter of 2022. For the past months we have been achieving a higher load factor than most of the airlines we compare ourselves with at the same time as our punctuality is world-class. The quarter was operationally successful, with almost 250,000 passengers flown and a load factor of 80.3%. These metrics make all of us at PLAY really proud and confirm that we are being well-received in the market. PLAY has a healthy financial position and a healthy cash balance. In 2022 we were still running the company at a loss but that is to be expected given the fact that we are a start-up company in a steep growth period as adding aircraft, destinations, and staff as well as introducing a new brand into the market is time consuming and capital intensive. We do however see clear and positive signs that show we are on the right track and that we will soon see a return on our investments as we become more established in the market. We have been very successful in controlling our cost level and it is great to see that the revenue is now beginning to grow, creating the perfect cocktail for success. We saw a very positive trend in ancillary revenues in the quarter with airport sales per passenger increasing, the successful ramping up of our cargo operations and have now launched new digital solutions designed to increase our ancillary revenue as well as our service level. The year begins with very strong booking trends and increased unit revenue making us confident that our revenue base is maturing and developing positively. Our capacity in summer 2023 is growing by close to 77% compared to summer 2022 and we are adding four new aircraft to our fleet as well as welcoming around 200 new team members. It is a real pleasure to see the PLAY team continuously growing stronger and working hard on reaching our goals for the year. We enter the new year filled with energy and ambition and a laser focus on reaching our goals. I believe our great team of Players is only just beginning to show the world what they are made of and I am both humble and glad to be a part of this great team of people.”

PLAY carried 61,798 passengers in January

The Icelandic budget carrier, PLAY carried 61,798 passengers in January 2023 which is more than five times the number of passengers PLAY carried in January 2022. The load factor in January was 76% compared to an 82.8% load factor in December. The January load factor and passenger number is very satisfactory for a traditionally difficult month in travel and demonstrates the continued growth and effectiveness of PLAY’s distribution and commercial activity. 

PLAY’s popular route to and from Tenerife had an impressive load factor of over 90% in January, while the Paris route performed nearly as well with an almost 90% load factor. 

30% of PLAY passengers in January were travelling from Iceland, 37% were travelling to Iceland and 32% were connecting passengers (VIA). 

Forward bookings in January were strong, beginning the year on a very positive note as January was a record sales month for PLAY.

In January, 84.3% of PLAY’s flights arrived on schedule, ensuring a smooth and punctual travel experience for our passengers despite very challenging winter operations in Iceland.

PLAY takes off to Canada and expands significantly in Denmark

Icelandic low-cost carrier PLAY selects MOST's end-to-end payment solution

PLAY, the Icelandic low-cost carrier, has selected MOST, makers of technology for a world on the move, to provide it with onboard retailing and payment solutions, including software, hardware and payment gateway services. Working with MOST will allow crewmembers to accept secure payments quickly and easily from passengers onboard the aircraft.  

 

Starting from December 6, PLAY will upgrade from its existing card readers on board and implement three of MOST's modular payment solutions: most.Retail, most.Pay and most.Onthego. The deployment covers PLAY's entire fleet of A320 family aircraft. 

  

As the launch customer for three of MOST's products, PLAY is paving the way for a future of frictionless inflight payment technology. MOSTs cutting-edge digital retail platform, payment sled hardware and payment gateway technology will mean that PLAY passengers can look forward to a more convenient and streamlined travel experience, and crew can efficiently complete transactions in the cabin.

With PLAY already serving 24 destinations in Europe and the United States from its hub in Keflavik, Iceland, MOST's end-to-end payment solutions enable passengers on both sides of the Atlantic to use their preferred payment option. PLAY's passengers will be able to tap and pay with all major cards or digital wallets worldwide in currencies including EURO, US Dollars and ISK when ordering inflight food and beverages. A sophisticated special offer engine and forecasting tools will also help PLAY to maximize inflight sales opportunities as it grows. 

 

MOST will also supply the airline with customized and company-branded mobile payment accessories. PLAY's crew will be using smartphones paired with payment modules from MOST to complete transactions, track onboard inventory and perform other tasks, such as delivering eco-friendly e-receipts to passengers. The crew devices will sit in a custom casing, designed ergonomically with crew comfort in mind and manufactured in PLAY's signature brand colours. The cases provide increased physical protection for crew devices and feature a detachable payment peripheral that can be removed to get closer to the cardholder.

  

"We are delighted to be working with an energetic airline brand such as PLAY as it continues to expand its fast-growing route network across North America and Europe," said MOST CEO Jan Blanchard. "This airline is hungry for success, and they have plenty of room to grow. Our solutions will help PLAY deliver on its low-cost model and bolster ancillary revenues by simplifying inflight sales and removing barriers to payment on board."

  

PLAY CIO Georg Haraldsson added: "This is an exciting time for our airline as we continue to invest in innovative solutions that will help us boost ancillary revenues and enhance the travel experience for our passengers. Technology and service are key to our strategy as a low-cost carrier, and MOST has delivered an excellent combination of specialist hardware and software. We trust them to help us achieve our goals."

Ólafur Þór Jóhannesson has been appointed Managing Director of Finance at PLAY.

Ólafur Þór Jóhannesson has been appointed Managing Director of Finance at Icelandic budget airline PLAY. He takes over the job from Þóra Eggertsdóttir and starts work at the beginning of November.

Ólafur Þór served as CEO, Deputy CEO and Managing Director of Finance at Skeljungur hf. in 2019-2022. Prior to that, he held various management positions in the business sector, has been an independent consultant, held board positions in several companies, and then he was an accountant and partner at PricewaterhouseCoopers. Ólafur Þór also taught at the Faculty of Business Administration at Reykjavik University. He is a business student from the University of Iceland and is a certified public accountant.

Olafur Thor: "I am grateful for the opportunity to be a participant in the ongoing development of PLAY which, in my opinion, is in a very interesting place. I look forward to the many projects ahead and hope that my experience and knowledge from different industries will be useful to the company."

Birgir Jónsson, CEO of PLAY: "We are delighted to introduce Ólafur Þór to the game, as it is a great reward for him for the company. He has tremendous experience from diverse sources and is a good addition to PLAY's strong management team. Now that he takes over our strong financial team, we can take certain steps forward and continue to raise the flight. "I would like to warmly welcome you on board."

Solid September for PLAY...Icelandic airline starts new Liverpool service

Photo by Benjamin Suter on Unsplash

In September, one of Iceland's newest airlines, PLAY carried 92,181 passengers, a big decrease from August when the airline flew 109,956 people.  Load factor also dropped from nearly 87% in August to 81.5%. On-time performance (OTP) in September was 86%.

According to the airline, in Iceland, September is seen as a traditionally challenging month for airlines, due to a drop in demand for holidays, a new school year and a return to work for many. 

However, PLAY’s hub-and-spoke network has had a very positive effect on the business, including aircraft utilization and a decline in unit cost. 

New destinations & large hiring

This week PLAY is celebrating its inaugural flight to Liverpool John Lennon Airport.  PLAY will operate flights to Liverpool two times a week, on Mondays and Fridays. Passengers can now fly comfortably between Liverpool and PLAY’s four destinations in the U.S. as well as Iceland.

Welcome to Liverpool - Play's first service. Photo Play

Paul Winfield, Director of Aviation Development for Liverpool John Lennon Airport, said: "We’re delighted to welcome PLAY to Liverpool and to add Reykjavik as the latest destination to the Airport’s expanding route network. 

As well offering the region’s travellers an excellent low-cost airline product to Iceland and on to New York, Washington and Boston, this will also be another important link for the region’s visitor economy too, making it easy for Icelanders and Americans wanting to visit the Liverpool City Region, the North West and North Wales to fly to Liverpool."

Porto

On October 6, PLAY launched ticket sales to Porto in Portugal. Scheduled flights will begin in April 2023 and will be operated twice a week throughout October 2023. Porto is PLAY’s second destination in Portugal as PLAY offered direct flights twice a week between Iceland and Lisbon in 2022 and will continue to do so in 2023. This will be the first time that an airline offers scheduled direct flights between Iceland and Porto.

On September 1, PLAY announced a recruitment drive to fill 150 cabin crew positions and 55 flight crew positions for 2023 to support the company’s growth in the coming year. This received great interest and more than 3,000 applied for the positions. The selection process has already begun, and the first training courses are planned for December and will continue until June.

Photo Play

Birgir Jonsson, PLAY’S CEO:  "We are quite pleased with the respectable load factor we achieved in September as the month traditionally has low demand at the end of summer. Even though the winter months are always challenging for airlines and the economic situation in the world continues to be uncertain our sales over the past weeks have been strong after a somewhat slow start to the fall. We are therefore continuing with our plans of adding new destinations, aircraft and people for next year. The strength of our hub-and-spoke business model gives us the flexibility to move capacity between markets as demand fluctuates and it is this flexibility that gives us confidence for the coming months and the future performance of PLAY. The daily operation continues to be solid, our on-time performance is very impressive and the customer feedback regarding our services is overwhelmingly positive and complimentary.  These are some of the many  reasons why I‘m so proud of belonging to the great team of people at PLAY and why I‘m so very optimistic for the future."

PLAY carried 109 thousand passengers in August with an 86.9% load factor

PLAY carried 108,622 passengers in August, a similar number to the previous month when PLAY carried 109,956 passengers. 

Photo Play

In August, the load factor was 86.9% compared to an 87.9% load factor in July and 79.2% in June. This development is primarily due to the addition of the transatlantic hub-and-spoke model connecting cities in Europe and the United States.

In the summer of 2022 PLAY has successfully launched many new destinations and seen very positive development of the existing destinations on the European side of the network. PLAY’s hub-and-spoke network is now up and running with positive effects on the business, including improved aircraft utilization, unit cost declining below our target of USD 4 cents and higher load factor. Forward bookings for the remainder of the year are tracking ahead of last year and it is safe to say that booking status for autumn and winter remains good.

On-time performance (OTP) in August was 89.2%, a testament of the professionalism of our operations team.

New U.S. Destination and largest hiring yet 

Iceland's Play releases details of Q2 performance

PLAY carried approx. 181 thousand passengers in Q2 and the load factor was 74.8%, The passenger numbers increased between months and the load factor strengthened. This favourable trend has continued into Q3 and 110 thousand passengers flew with PLAY in July which is mainly due to PLAY‘s connecting flights across the Atlantic Ocean between major cities in Europe and the United States. The booking status for autumn and winter remains good.

“We can safely say that PLAY has now emerged from the tough obstacle course of the startup and expansion phase and smoother sailing is ahead. Over the past months, we have created a solid foundation that we will use to keep developing PLAY as a successful company. The second quarter of 2022 was the last hurdle towards running our business model which came into full effect in July, at the beginning of the third quarter. After rapid expansion with many new destinations, the deployment of our VIA operations and receiving new aircraft, our operations are now stable. 

I am so proud of the people working at PLAY who have managed to start this company during a volatile time in a complicated business environment. We are now coming out of the development phase with a strong financial position and finally, the external conditions are more favourable after strong headwinds. Oil prices are, for example, going down fast. We see brighter times ahead, our booking status is strong and we plan on showing a positive operating result later this year. People are clearly not deterred from travelling because of the coronavirus anymore. We see that in the increase of our long-term bookings and a drop in cancellation coverage. Our biggest objectives this coming winter are receiving four new aircraft, which will be added to our fleet next year, and hiring more crew members. 300 great people are already working at PLAY and that group will be even bigger next year when we will hire 200 more,” says Birgir Jonsson, PLAY‘s CEO.

Booking flow is strong and load factor growing.

PLAY has carried approx. 181 thousand passengers in Q2 and anticipates approx. 800 thousand passengers this year.

The financial position of the company is strong. Cash and cash equivalents on June 30 amounted to USD 39.5 million with restricted cash. The equity ratio was 13.4% and the company has no external interest-bearing debt.

Earnings before interest and taxes (EBIT) were negative in Q2 2022 in the amount of USD 14.4 million, as expected as the company had yet to reach economies of scale.

As of July 2022, PLAY has started operating the full hub-and-spoke network.

PLAY reached its cost target ahead of time, being under 4 US cents unit cost (CASK excl. fuel).

Unit cost continues to decrease with expanded operation, and PLAY anticipates positive operating results in the latter half of this year. 

Operating revenues are rapidly increasing and PLAY expects the turnover to be USD 150-160 million this year.

PLAY’s destinations are now 25.

PLAY expects to carry around 800 thousand passengers in 2022 and report revenue of approx. USD 150-160 million. Unit cost (CASK excl. fuel) continues to decrease with the expanded operation and PLAY expects operational profit later this year. PLAY reached its cost target ahead of time, being under 4 US cents CASK excl. fuel due to effective cost control and increased economy of scale with more aircraft.

During Q2, the main focus was on preparing for the airline’s operational ramp-up before the summer schedule and the hub-and-spoke operation, and by the time Q3 started, PLAY’s full hub-and-spoke network was in place with six aircraft in operation. PLAY successfully started operating flights to fourteen new markets in Q2.

Load factor and total passenger numbers increase in July for Iceland's PLAY

Icelandic carrier PLAY has scored a big improvement in July as load factor and passenger numbers increase as the new fledging airline continues to grow at a rapid pace.  The speed was further enhanced when a sixth aircraft, an  Airbus A320neo joined the fleet at the end of June and commenced operations during the first week of July. 

The airline carried 109,956 passengers during the month, which is 25% up from June when the budget carrier recorded 87,932 passengers. It is interesting to note that the number of passengers flown in July is more than the total number of all passengers carried in 2021.

In July, the load factor was 87.9% compared to a 79.2% load factor in June and 69.6% in May. This positive development is primarily due to the addition of the transatlantic hub and spoke model connecting cities in Europe and the United States.

 In the spring and summer PLAY has successfully launched many new destinations and seen very positive development of the existing destinations on the European side of the network.

July was the first month of full operations for PLAY following the ramp-up to the spring, with six aircraft operating to 25 destinations on both sides of the Atlantic.

On-time performance (OTP) in July was 79%, which is very satisfactory given the number of brand-new destinations and the difficult situation at many airports that still struggle with staff shortages causing delays for many airlines.

Six aircraft in operation

PLAY’s sixth aircraft, an Airbus A320neo, arrived in Iceland at the end of June and began flying passengers in July. PLAY is now operating three Airbus A321neo and three Airbus A320neo aircraft, in line with the company’s business plan and fleet strategy. 

PLAY will take delivery of four new A320/321neo aircraft next winter, bringing the fleet to a total of 10 aircraft in service from spring 2023. 

“It’s been great seeing so many new destinations and the full transatlantic network come into play over the past few weeks and the positive effect it has had on the utilization across our network. Our team achieved a very impressive on-time performance in the month despite a very challenging situation at many airports, a true achievement. We continue to see our unit cost (ex-fuel CASK) being below our targeted 4$ cents, fuel prices are decreasing, unit revenue (RASK) is rising, and our future booking flow is strong. It has been truly inspiring for me to take part in and witness the great team spirit and the professionality of all my colleagues across all functions at PLAY and how all their hard work and dedication are driving the success of our airline. These are all factors that fill me with enthusiasm and anticipation for the coming months and the long-term future of PLAY.”

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As of August 3, 2022 a new volcanic eruption began in the Fagradalsfjall volcanic system in the Reykjanes peninsula. The area is closely monitored by authorities, caution is advised and we highly recommend eager observers keep a close eye on www.safetravel.is for detailed information. The eruption is very visible in daylight and can be seen on a live stream from the area. The eruption is small, poses no threats to infrastructure or inhabitants in the area, Keflavik International Airport is open and incoming flights are getting a truly spectacular view!

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