Icelandic low-cost carrier PLAY Airlines has announced a net profit of USD 12 million during the summer of 2023. This marks a significant upswing from the USD 3 million loss experienced in the same period last year. The impressive comeback reflects the effectiveness of the company’s business model and operational efficiency.
PLAY’s Financial Metamorphosis
PLAY’s transformation from a company that posted a loss to a profitable entity is no small feat. In the summer months, from June to August, the airline reversed its fortunes. It nearly doubled its revenue from USD 63 million in 2022 to USD 116 million in 2023. These figures were presented during the company’s market update meeting, eliciting optimism for PLAY’s robust financial health.
Operational Efficiency
An 89% load factor and the transportation of 537,000 passengers underscore PLAY’s operational success. Despite increased activities, an 83.9% punctuality rate highlights the company’s commitment to customer satisfaction and operational excellence. Adding four new aircraft and 13 new destinations demonstrates the airline’s expansive growth and improved service delivery.
PLAY’s Q3 Performance
Projections for the third quarter are equally promising, with an expected operating profit of USD 10 million. This is an impressive turnaround of USD 8.7 million year-over-year. With an estimated cash flow of USD 39 million by the end of Q3, PLAY’s financial position remains robust. The airline does not expect to need additional funding.
Looking Ahead: 2024 and Beyond
PLAY is set to continue its upward trajectory in 2024. PLAY aims to fly approximately 1.8 million passengers with an estimated revenue of USD 340 million. Operational enhancements, bolstered by acquiring two additional Airbus A320neo family aircraft slated for 2025, position PLAY for continued growth and profitability.
PLAY CEO Comments
PLAY’s CEO Birgir Jonsson expressed immense pride in the company’s summer performance and optimism for the future.
“As we draw nearer to the end of the peak season, we are very proud of PLAY’s performance over the summer months and optimistic for the future,” Jonsson said. “We see solid financial results with revenue in the summer months nearly doubling from last year and the airline delivering a net profit of $12 million in the same period. That is a turnaround, from net loss to net profit, of around $15 million from last year.
“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. 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.
“Our cash position remains solid and, when adjusted for investments in fleet expansion, we have reached a neutral cash flow. We do not intend to raise new equity in the current market environment. 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.”
PLAY’s End of Summer Meeting Presentation
PLAY’s steadfast focus on efficient operations, customer satisfaction, and strategic expansion has proven fruitful. The airline details its strategy for sustained profitability and growth in the Q3 presentation.
For comprehensive details on PLAY Airline’s financial and operational updates, visit www.flyplay.com/investor-relations.