Icelandic low-cost carrier PLAY has announced it will be making some fundamental changes to its model and route network as the airline forecasts that earnings in 2024 will fall below market expectations.  

The fallout is likely to see the airline shift its focus from acting primarily as a connecting carrier for passengers between Europe and North America to concentrating on serving point-to-point leisure routes between Iceland and points across Southern Europe, a sector in which the carrier has expanded hugely in 2024. 

The carrier says that its yield on hub-and-spoke operations on routes across the Atlantic has been disappointing throughout 2024 as many other carriers have poured extra capacity onto some key transatlantic routes while opening up new services on others. This drop in yield is evidently causing PLAY some financial concerns and reluctant to fall into the same trap as its Icelandic predecessor WOW Air is taking steps now to mitigate the issue.  

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