Summary
- PLAY Airlines has experienced a significant turnaround, going from a $3 million loss in the previous summer to a $12 million profit this summer.
- The airline’s revenue nearly doubled compared to last year, reaching $116 million, and it achieved a high load factor of 89%.
- PLAY Airlines foresees a profitable third quarter in 2023, with projected revenue of $10 million and a net profit of $4 million.
The Icelandic low-cost carrier, PLAY, has experienced growth and delivered a strong financial performance for this summer season. While summer typically represents the most lucrative period for airlines worldwide, PLAY’s situation needs to be regarded somewhat differently, as it is a relatively new entrant to the market.
PLAY Airlines reported a profit of $12 million after tax for the period spanning from June to August, showing its capability to operate profitably during the summer. Last summer, however, the airline’s situation was considerably worse. PLAY posted a loss of $3 million. The transformation from a loss to a profit demonstrates that PLAY’s business model is working well, the airline said.
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In addition to its reported profit, the company’s revenue nearly doubled compared to the same period in 2022, surging from $63 million to $116 million. Regarding the load factor, the Icelandic airline achieved an 89% rate, surpassing the performance of its rivals within the region. Passenger traffic also witnessed a significant surge, with the airline transporting 537,000 passengers during the summer season.
Expected Q3 profit in the face of yearly losses
Alongside its encouraging financial performance, PLAY Airlines foresees a profitable third quarter in 2023. The airline’s projections indicate that Q3 revenue will reach approximately $10 million, a significant increase from the $1.3 million reported for the same period in 2022.
Additionally, the airline anticipates recording a net profit of $4 million in Q3. Commenting on the airline’s financial outlook, the chief executive at PLAY, Birgir Jonsson, said:
“We foresee that we will again almost double our revenue in the third quarter and that our operational margin (EBIT) will be nearly ten times higher than last year, as well as PLAY delivering a quarterly net profit for the first time.”
Despite the robust financial performance in both the summer and Q3, the airline said it would face a yearly operating loss of $10 million for 2023. Nevertheless, this marks a notable improvement compared to the operating loss of $44 million in 2022.
“The fact that we have managed to keep our costs low while increasing our unit revenue (RASK) and nearly doubling our capacity is a true testament of how well-established we are becoming in our key markets and gives us great confidence for the future.”
Expanding its fleet to 12 A320neos
PLAY has revealed its outlook for 2024 and 2025, which includes its fleet expansion. Currently, the airline operates a fleet of 10 Airbus A320neo family aircraft, with an average age of 3.2 years, as per Planespotters.net. In 2025, PLAY intends to incorporate two more Airbus A320neo family aircraft into its fleet.
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Furthermore, in 2024, the airline is targeting a passenger count of 1.8 million, with estimated revenue expected to reach approximately $340 million. Jonsson added:
“After a period of steep growth, we have now reached the required scale to run an efficient and profitable operation and can begin to focus on optimizing our operation. I want to thank all the great team of Players for their outstanding work and congratulate them on their achievements and success.”
What are your thoughts on PLAY’s financial performance? Have you ever flown with this Icelandic airline? Let us know in the comments section below.