New Icelandic air carrier PLAY carried 19,686 passengers in February

The new Icelandic carrier PLAY carried 19,686 passengers in February with a load factor of 67.1%, increasing from 55.7% in January. The surge of COVID-19 infections at the end of 2021 due to the spread of the Omicron variant had a negative impact on booking inflow. As a result, PLAY’s schedule was adjusted in January and February 2022.

The budget carrier believes its aircraft utilization will improve in the coming months as there are less travel restrictions and an increase it passenger demand, that expectation is based on the following:

In PLAY’s January traffic report, it was stated that booking inflow had started to improve. In February, this trend continued despite recent geopolitical developments

The addition of the VIA market to PLAY’s network when we start connecting cities in Europe and the U.S. will supplement the TO and FROM markets that we already serve, and should result in higher utilization

New destinations have been very well received, and it is encouraging to see that consumers’ confidence has returned as the effects of COVID-19 dissipate. Nevertheless, PLAY is prepared to weather any uncertainty associated with the pandemic and recent Russian invasion of Ukraine. So far, the effect on PLAY of the invasion is limited to the rise in oil prices. PLAY is in the process of implementing a hedging strategy, details of which will be revealed at the next investor’s presentation on March 17.

Six Aircraft in 2022

PLAY’s first Airbus A320neo aircraft arrived in Iceland on March 1. PLAY´s fleet currently consists of three Airbus A321neo aircraft and one A320neo. PLAY will receive two aircraft in April and May, one A321neoLR and one A320neo. Thus, PLAY’s fleet will consist of six aircraft in summer 2022. We are currently in the process of onboarding and training 150 new team members.

PLAY to Orlando

In February, PLAY launched ticket sales to Orlando, Florida in the U.S. PLAY’s first flight to Orlando will be on September 30, 2022. Orlando will be PLAY´s fourth destination in the U.S. The other three destinations are Boston, Baltimore/Washington DC and New York, all starting in spring/summer 2022.

“As we see our load factor rising, we feel that the PLAY story is entering a new and exciting chapter. We have seen booking trends grow in the past months, indicating a healthy growth from spring into summer and beyond. As we take decisive but careful steps towards expanding our fleet, staff number, and network, we are confident that we are increasing our capacity at precisely the right time as the market demand is clearly recovering from the COVID-19 slump. We have some very exciting times ahead, and all of us at PLAY are extremely focused on reaching our objectives and benefiting from the growth that the international aviation and tourism market will experience in the future,“ says Birgir Jónsson, PLAY’s CEO.

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PLAY to head to Orlando from 30th September.

Icelandic budget carrier PLAY will start a service to Orlando, Florida on 30 September, with tickets on sale now. The airline will operate the route three times a week, Mondays, Wednesdays and Fridays, with the return departing Orlando International Airport on Tuesdays, Thursdays and Saturdays. 

Orlando will be PLAY´s fourth destination in the U.S. The other three destinations are Boston, Baltimore/Washington DC and New York, all starting in Spring/Summer 2022.

PLAY will be adding Airbus A321neo Long Range (LR) aircraft to its fleet, making it possible to operate flights to Orlando. PLAY uses the standard model of the Airbus A321neo, but the Airbus A321neo LR is the same aircraft with more fuel capacity and, therefore, capable of flying further than PLAY’s existing Airbus A321s.

“With the Airbus A321neo LR, we can reach markets that were not open to PLAY before. We use the newest generation of A320/1neo from Airbus, which is the most sought-after aircraft in the world today because of its benefits and the Long Range-version is a welcome addition,” says Birgir Jónsson, CEO of PLAY.

“I am convinced that our arrival in Orlando will shake up the Iceland - Florida market. After studying our competitors’ prices on flights to and from Orlando, we are confident we can offer much lower prices on this popular route, which benefits a huge market. That includes the many Icelanders who travel to Florida as well as everyone travelling between Florida and Europe. PLAY is a real low-budget airline that aims to offer the lowest prices. With our operations on this popular route, many more will be able to fly to Florida and experience this wonderful area.”

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Growing load factor and strong U.S. ticket sales announces Iceland's PLAY

Growing load factor and strong U.S. ticket sales

PLAY carried 13,488 passengers in January with a load factor of 55.7% an increase from 53.2% in December. A surge in COVID-19 cases in the past months caused hesitation amongst passengers to book their travel, and PLAY adjusted its schedule and reduced capacity in January to reflect this. However, we are seeing very strong booking trends for the coming months, and it is obvious that consumers’ confidence has started to return as the effects of COVID-19 dissipates. People’s attitude towards the pandemic is clearly changing and many are prepared to travel again. As an indication of strong booking trends in January, the daily booking numbers were approximately three times higher than in December. This uptick in bookings for spring and summer travel makes us optimistic and the outlook for 2022 is bright. Nevertheless, we are prepared to weather the uncertainty associated with the pandemic with flexible operations, a solid financial position, and a strong cash balance.

88.5% of PLAY’s flights in January arrived on schedule despite very challenging winter operations.

New aircraft brings PLAY’s fleet to six in 2022

PLAY has signed a Letter of Intent for one A321neo aircraft. The aircraft is scheduled to arrive in April in time for PLAY‘s services to North America in spring 2022.

PLAY has now secured the first ten aircraft in the fleet, five A321neos and five A320neos. PLAY has not changed its fleet plan as laid out in the company’s business plan and will operate six aircraft this summer increasing to ten in spring 2023.  

New low-cost route between Europe and New York

On February 1, PLAY launched ticket sales to New York. PLAY´s first flight to New York will be on June 9, and flights will be operated daily. PLAY will fly to New York Stewart International Airport and will be the first airline to operate international flights from the airport for a number of years. This will be a major benefit for the millions of people living in the area and the local tourism industry. This is PLAY´s third destination in the United States as flights to Baltimore/Washington, D.C. will begin in April, and to Boston in May. The cost of operating at New York Stewart Airport is significantly lower than other airports in New York, making it possible for PLAY to offer the lowest fares between New York and Europe. Because of less traffic at the airport, PLAY´s aircraft will spend less time in holding patterns and taxiing on the ground, saving fuel, operating expenses, and reducing carbon emissions. This aligns well with PLAY´s strategy of offering the lowest prices and comfortable and relaxed services in an environmentally-friendly manner. The reception after the launch was very good, and we immediately saw a healthy flow of bookings coming from the U.S., Europe and Iceland.

More New York routes for PLAY

PLAY has launched ticket sales to New York in the United States. PLAY´s first flight to New York will be on June 9 and PLAY will operate daily flights. 

PLAY will fly to New York Stewart International Airport and will be the only airline to operate international flights from the airport. This will be a major benefit for the millions of people living in the area surrounding the airport and the local tourism industry.

“This is a significant development for New York Stewart International Airport and the region and customers it serves,” said Rick Cotton, Executive Director of the Port of New York and New Jersey. 

“The addition of PLAY’s international service is important in realizing our post-pandemic vision for New York Stewart as a leading regional provider of both international and domestic air service and as a generator of strong economic growth.”

This is PLAY´s third destination in the United States as flights to Baltimore/Washington will begin in April and service to  Boston will commence in May. This is an important expansion to PLAY´s market area as transatlantic flights will be a major factor in its business model. These three US destinations will open up new routes to Iceland, Paris, Berlin, Copenhagen, Dublin, Brussels, Trondheim, and Gothenburg in Europe in the spring.

First six months of PLAY classed as a success with more than 100,000 passengers flying with the carrier.

During PLAY‘s first six months in operation, the airline flew 101,053 passengers on more than 1,000 flights. Considering the challenging environment with the pandemic and the performance of other start-up airlines in Europe and North America, we consider the 53.2% load factor for the year very satisfactory.

In 2021, over 48% of our passengers were travelling from Iceland. We are delighted with the reception that PLAY has received in Iceland as the numbers show that there was a significant need for a low-cost alternative in the market.

Our flights to the U.S., which we recently launched ticket sales for and will start operating in Spring 2022, will strengthen PLAY’s foundation even more as we open up the U.S. – Iceland market to low-cost travel and facilitate connections for passengers that want to take advantage of low-cost travel between the U.S. and Europe.

In 2022, PLAY will serve 24 destinations in Europe and North America.  
17,749 Passengers in December

More than 100,000 passengers flew with PLAY in the first 6 months

During PLAY‘s first six months in operation, the airline flew 101,053 passengers on more than 1,000 flights. Considering the challenging environment with the pandemic and the performance of other start-up airlines in Europe and North America, we consider the 53.2% load factor for the year very satisfactory.

In 2021, over 48% of our passengers were travelling from Iceland. We are delighted with the reception that PLAY has received in Iceland as the numbers show that there was a significant need for a low-cost alternative in the market.

Our flights to the U.S., which we recently launched ticket sales for and will start operating in Spring 2022, will strengthen PLAY’s foundation even more as we open up the U.S. – Iceland market to low-cost travel and facilitate connections for passengers that want to take advantage of low-cost travel between the U.S. and Europe.

In 2022, PLAY will serve 24 destinations in Europe and North America.  
17,749 Passengers in December

PLAY carried 16,689 passengers in November......

The Icelandic budget airline with a wow factor, PLAY carried 16,689 passengers during November, with a load factor of 58.3%, the firm has revealed in its latest figures.  In October the airline managed to score a load factor of 67.7% however a new rise in COVID-19 cases in mid-November in Iceland and the European markets served by PLAY inevitably scaled down a highly positive trend in demand for the month. 

Changes to bookings are less than in the last wave of COVID-19 but the last weeks have seen a clear change of dynamic in the markets. Long-term bookings remain strong but short-term bookings for seasonal weekend trips slowed down which negatively affected our load factor in November. This hesitation in the markets is due to rapid changes in travel restrictions, a rising number of COVID-19 cases across Europe, and uncertainty around vaccinations and the Omicron variant.

Only October has had a higher load factor since the beginning of flight operations. Considering the challenging environment with the pandemic and the fact that November has traditionally lower demand in the aviation industry we consider the situation quite acceptable. With vaccination rates in our markets increasing, we are cautiously positive going forward but the uncertainty associated with the pandemic will remain for the foreseeable future. PLAY is well prepared to weather this uncertainty with flexible operations, a very favourable financial position with a strong cash balance, operational cost being lower than expected and no interest-bearing debt. Therefore, the company has significant strength and flexibility to continue its growth and ramp up in the ever-changing market dynamics.

Positive Play in September?

New start-up airline Play scored a load factor of 52.1% in September
96.2% of flights arrived on-time 

In September, PLAY carried 15,223 passengers spread out on its flights, scoring a load factor of 52.1%, which was up from 46% in August. According to the airline, this result reflects recovering demand from passengers to and from Iceland. 

The airline also reported that during the month there was a decline in the number of passengers who changed their bookings due to COVID-19. Demonstrating growing consumer confidence and the relaxation of travel restrictions in Iceland and further afield. 

The airline also thinks the increase is in part to its name and brand becoming more known and recognised. More people are wanting to sample the style of the new airline and trust it to carry them overseas. 

Also in September, PLAY announced a recruitment drive to fill 100 cabin crew and 50 flight crew positions to support the airline’s growth for 2022.  This will double the number of employees employed by the company.

Due to the positive demand trends outlined above, PLAY has added Amsterdam as a new destination to its winter schedule. The first flight to Amsterdam will be on December 3, with flights initially operating Mondays and Fridays and Thursdays and Sundays to be added from December 16. Additional new destinations in Europe will be announced in the coming weeks.

“We have been careful in our plans due to the pandemic. As the local tourism shows signs of recovery and travel restrictions are being relaxed, we see our load factor increase and very positive demand trends for the future. It’s safe to say that we are optimistic and looking forward to a robust next year. I am truly excited to welcome new members to our team and we are very proud to be able to provide all these new jobs. We have exciting times ahead of us,” says Birgir Jónsson CEO. 

PLAY to receive four Airbus neo aircraft from GECAS’ orderbook

 

GECAS has reached an agreement to provide three A320neo and one A321NX narrowbody aircraft from its orderbook to PLAY, the newly operating Icelandic low-cost airline.  The aircraft are scheduled to be delivered between autumn 2022 and spring 2023

Based in Reykjavík’s Keflavík International Airport and commencing operations in June of this year, PLAY’s current fleet of three A321neo connects passengers to ten locations across Europe. As Iceland offers a unique geographic location for transatlantic travel, these new technology narrowbodies offer greater capability to make connections within North America as well.

“We are delighted to add additional aircraft to the PLAY fleet. Our long-term objective is to make PLAY a leading brand in our market and we are very happy to have signed a partnership with GECAS, a leading international aircraft lessor. We appreciate the relationship with them through the early days of our airline,” Birgir Jónsson, PLAY’s CEO said. “We are consciously including environmental and ethical variables in our decision making. The addition of these fuel-efficient aircraft will help us meet our growth objectives as we look forward to the opportunities ahead.”

“GECAS has a successful track record of working with start-ups from their inception and are proud to support their success,” shared Alan Buckley, GECAS’ SVP & Region Manager. “GECAS is impressed with PLAY’s business plan and believe the airline is well positioned for growth. These neos will enable PLAY to build a broader network of routes to meet future travel demand and we are excited to join them on this journey.”

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First half to 2021 played well for PLAY - better than expected results.

Remarkably the brand new low-cost airline operating flights between Iceland and Europe, PLAY has had a good start to the year.  This new budget offering carried more than 17,300 passengers in August, which almost doubled the number of passengers carried in July.

Also in August PLAY applied for a permit and exemption authority with the US Department of Transportation to launch services to the United States in 2022. The carrier put in the application on 20th August asking to operate both scheduled and charter flights in and out of the U.S. on its A321 aircraft.

In April, PLAY raised USD 47.0 million through private placement and in June, three aircraft commenced scheduled flights under favourable power-by-the-hour lease terms.

Operation begins in a secure and efficient manner 

Cash position stronger than planned

Leasing six new aircraft - a major milestone in securing future fleet at terms better than anticipated in business plan

Positive demand trends and outlook

Focus is now on preparing for the hub-and-spoke operation in spring 2022 and adding destinations in North America and Europe

After receiving the Air Operator Certificate and launching ticket sales, there was strong demand making PLAY’s first summer schedule a success.

PLAY further solidified its funding in June, raising USD 34.9 million through an Initial Public Offering and is now listed on the Nasdaq First North Growth Market Iceland.

The financials for first half reflect PLAY’S successful start of operations. The cash position is more robust than estimated as terms on credit card settlements are more favourable than anticipated. These improved terms reflect the solid financial position of the company and a successful start of operations.  

Positive Demand Trends Support Buildup

Iceland’s newest airline launches direct flights between Reykjavik and London Stansted.

Ready to Play.......Iceland is back on the destination boards at London Stansted with the new airline Play launch a route from the airport to Reykjavik  

The first flight took off on the 24th of June operated by a 192 seat Airbus A321neo jet in the rather bright and very wowish paint job.  The route is scheduled to be operated four times a week at the moment, with flights on Mondays, Thursdays, Fridays, and Sundays, but could be increased as and when demand dictates. 

Iceland is currently one of the destinations on the UK’s travel green list where travellers can visit without having to quarantine on return. With Play fares starting around £30 for a seat only, Reykjavik might just be a great alternative to summer sunshine breaks for holidaymakers hungry to travel.  

Steve Griffiths, Managing Director of London Stansted, said: “We’re delighted PLAY has joined us at London Stansted and launched its inaugural flight from the airport.

“Iceland is one of the very few countries currently on the UK green travel list so it’s a great alternative destination for people looking to get away on holiday this summer.

“The North Atlantic island offers an incredible number of things to do and see for holidaymakers and adventures alike. With its stunning scenery, volcanos, waterfalls, geysers and hot springs, it’s truly a spectacular place to visit.

“We wish PLAY every success with these great value and convenient flights which will I’m sure prove to be very popular with passengers from London and East of England wishing to fly from their local airport.”

Birgir Jónsson, CEO of PLAY, said: “The inaugural flight marks a milestone moment for us at PLAY. I am incredibly proud of my colleagues, all of whom have played an integral role in launching the airline.

“It’s great to see the crew wearing PLAY’s new uniform, which encompasses our core values: simplicity, playfulness, competitiveness, equality and on-time performance.

“The PLAY-branded Nike trainers are also a great nod to the Greek goddess Victory’s wings, which symbolise the sound of speed, movement, power and motivation.

“We’re so excited to be taking our bright red plane to the skies, and welcoming British travellers to Iceland this summer.”

Things to do in Reykjavik

Where to stay.... Top hotels in Iceland

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Getting ready to play....A very successful conclusion to latest share offering by new Icelandic airline. Uniforms revealed.

On Friday evening the new share offering for the new budget carrier from Iceland, Play ended with a total new 221,906,800 shares issued.  There were two separate offer books available, offer book A and B, which were different with regard to size and allocation.

Approximately 4600 subscriptions were received for in total ISK 33.8 bn. or approx. USD 274 m.

In book A subscriptions were made for in total ISK 6.7 bn. or approx. USD 55 m, at the fixed rate of ISK 18 per share.

In book B subscriptions were made for in total ISK 27.0 bn. or approx. USD 220 m, with the final offer rate of ISK 20 per share.

The offering was managed by Arctica Finance, as Lead Financial Advisor, and Arion banki as Joint-Financial Advisor.

Play’s board of directors will now evaluate the subscriptions received in the offering and make decisions with regard thereto. The results of the allocation of the offering are expected to announced at the end of 28 June 2021. Information on final allocation will be accessible through the subscription system, which can be accessed through Arctica Finance´s website, www.arctica.is/play, by using the same log in credentials as in the subscription process.

The final due date for payment is expected to be on 5 July 2021. Subject to payment, the newly issued shares are expected to be delivered on 9 July 2021.

Trading of the shares of Play on Nasdaq First North is expected to commence on 9 July 2021. First day of trading of Play’s shares will be announced at least one business day in advance.

Birgir Jónsson, CEO of Fly Play said:  "This is a defining moment in PLAY‘s history with our inaugural flight yesterday which was a huge achievement by itself but also because today PLAY successfully concluded its IPO. Our staff has worked wonders over the past few days, and indeed weeks. We are well prepared to maximize the post-covid opportunity and we believe our investors have placed their trust in us as we have shown the resilience that is needed in this market. To add to the joy of today the Icelandic government finally declared Iceland free of any pandemic restrictions from midnight onwards. I think we can allow us some optimism now that we can start rebuilding Iceland’s tourism, and the world’s."