PLAY Airlines has reports a second quarter EBIT of negative (US $4.5) million on a 7.1 percent year-over-year increase in revenue to $78.3 million. At June 30, 2024, the carrier had $51.3 million in cash, including restricted cash.
On Wednesday (July 24, 2024), Play Airlines reported their second quarter financial results for the period ending June 30, 2024. The carrier reported a second quarter EBIT of negative (US $4.5) million on a year-over-year increase in revenue of 7.1 percent to $78.3 million. PLAY’s Q2 2024 total Revenue per available seat kilometer (TRASK) was 5.1 cents, down from 5.3 cents in the same period last year, while cost per available seat kilometer (CASK) was 5.4 cents, up from 5.2 cents in Q2 2023. Costs excluding fuel (CASK-ex) was 3.8 cents, compared to 3.5 cents last year. At the close of the second quarter, PLAY had 51.3 million in cash, including restricted cash.
In Wednesday’s announcement, PLAY’s CEO, Einar Örn Ólafsson, said,
“Q2 this year was our biggest quarter to date with 442 thousand passengers which is a 13% increase between years, 7% increase in total revenue and an 8% increase in ancillary revenue. At the same time, we had a 1 percentage point increase in our load factor while our ASK grew by 12%. Despite all of this increase, our on-time performance was 89% which makes us the most punctual airline operating departure flights from Keflavík International Airport. This is a fantastic result from my colleagues at PLAY and demonstrates the prominent level of professionalism within our team.
“Our Q2 results were marked by the deteriorating performance of the VIA market. Worsening performance was driven by significant growth in seat capacity across the Atlantic. Airlines have, however, been reducing their capacity for fall and winter, so the growth is set to decelerate based on published schedules. Nevertheless, the market remains more seasonal than it was pre-COVID due to delayed recovery in business travel.
“As a result, PLAY has reduced its seat capacity to/from North America in the fall and winter to better reflect seasonal fluctuations in demand, and at the same time, PLAY is adding more seats to existing and new leisure markets in Europe and Africa, markets that have produced higher yields for PLAY.
“Our EBIT in Q2 was hit by the lingering negative impact of the seismic activity in the Reykjanes peninsula and by the fact that Easter fell on Q1 this year. We are also fighting the development of fewer tourists visiting Iceland, which is a clear effect of a big push our neighboring countries have done in direct marketing to consumers. They spent around 21 million Euros in tourism advertising in 2023, 92% of which was government funded. Iceland needs a big marketing effort to attract visitors to our country and I believe that it can be done with a joint effort between the Icelandic tourism industry and the government.
“Safety plays a key factor when tourists select their destination and the misconception of Iceland not being safe due to seismic activity needs to be reduced or preferably eliminated. That is achievable with a proper campaign aimed at consumers.
“Though the results for the first six months of the year could have been better, we are optimistic for the rest of the year. We are adjusting our schedule to seasonality and continuously keeping our costs as low as possible with several initiatives across the company. Our forward-tracking revenue is showing positive trends for the fourth quarter.
“Our cash generation in Q2 was less than last year, mostly due to our growth being very limited between quarters this year and also because of a slightly worse financial performance.
Overall, PLAY´s position is solid, we have improved our financial outcome every year and continue to do so while remaining a great choice for passengers looking for low fares to their favorite destinations.”
During Q2 2024, PLAY carried 442,000 passengers, a 13.0 percent increase versus Q2 2023. Of the passengers flying with PLAY for the second quarter, 31 percent were flying from Iceland, 25 percent were flying to Iceland, and 44 percent were connecting passengers. PLAY operated 10 aircraft during the period, serving 36 destinations, up from nine aircraft and 34 destinations in the second quarter of 2023. The carrier also added new service to Vilnius (Lithuania) and Split (Croatia) during the second quarter.
Founded in 2019 by Arnar Magnússon and launched in June 2021, PLAY is a new Iceland-based low-cost carrier (LCC) which operates flights to nearly 40 destinations between Iceland and Europe, as well as to North America. Currently, PLAY operates flights from Baltimore, Boston, New York, and Washington D.C. in the U.S., as well as from Toronto, Canada. The carrier’s core motto is ‘Pay Less PLAY More’, meaning that the airline’s customers spend less on airfare and more while enjoying their holiday destination. PLAY’s fleet of 10 Airbus A320/A321neos is the youngest fleet in Europe.
Source: PLAY Airlines
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