PLAY Airlines has reported a third quarter operating profit (EBIT) of $1.3 million, the carrier’s first positive result, and a net loss of $2.9 million. PLAY's third quarter revenue increased to $59.9 million, compared to $32.5 million in the second quarter of 2022.
On Thursday (November 3, 2022), Icelandic carrier PLAY Airlines reported their third quarter financial results for the period ending September 30, 2022. For the first time, the carrier reported a positive operating result, with an EBIT of $1.3 million, and a net loss of $2.9 million. PLAY’s third quarter revenue was $59.9 million, an increase from $32.5 million during Q2 2022. The carrier expects to achieve approximately $140 million in revenue for the full year 2022, and projects 2023 turnover of between $310 and $330, with a positive full year operating profit. At September 30, 2022, PLAY had cash, cash equivalents and restricted cash totaling $29.6 million.
In Thursday’s announcment, PLAY’s CEO, Birgir Jónsson, said,
“This was the first quarter where we had our full transatlantic operation up and running. Since the majority of our destinations were brand-new to our network, the PLAY brand was mostly unknown in these markets. I feel that it is a significant achievement for such a young company to have made an operational profit (EBIT) under these circumstances and that it is not something to be taken for granted. Our load factor in the quarter was very acceptable at 85% for a new market entrant and seeing that trend continuing into the winter months is a good sign.
“We will not reach our previously stated target of achieving a positive operational profit in the second half of this year. We would have wanted to see a stronger outcome in the quarter, but we have been battling a very challenging external market environment which has negatively impacted our financial performance. Fuel prices have continued to stay at high levels, and the general demand was lower than anticipated in late summer and fall. This was especially evident for passengers coming to Iceland as the Icelandic tourism industry seemed to be at maximum capacity with hotel and rental cars either fully booked or prohibitively expensive. We’re already seeing positive change in this regard for next year but also acknowledge that the continuing economic uncertainty in our markets will likely impact demand.
“The takeoff for PLAY has been very successful in many ways but it must be said that the external business environment has made the financial takeoff heavier for us than we had hoped, i.e., fuel prices and other significant factors have not worked in our favor. Therefore, we are not satisfied with the financial performance of the company this year. We do, however, see many positive signs in our business, and we fully anticipate seeing a positive operational profit in 2023 as our revenue base matures and we become more established in our operation and markets.
“The fabulous PLAY team is already hard at work preparing for our next expansion phase and is hiring people, receiving four additional aircraft, and adding new destinations to our network. I look forward to the future as we are already seeing PLAY grow into a strong and profitable low-cost airline with a growing revenue base and happy customers.”
Founded in 2019 by Arnar Magnússon and launched in June 2021, PLAY is a new Iceland-based low-cost carrier (LCC) which operates flights between Iceland and Europe, as well as to North America. 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 Airbus A320neos and A321neos currently connect customers to 27 European and U.S. destinations. In 2023, Play will expand their fleet of Airbus A320/321neos to 10 aircraft.
Source: PLAY Airlines