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PLAY’s Revenues Increased 66% Compared To Q1 Last Year

Fly Play hf. has published its financials for the first quarter of 2024. The airline experienced substantial enhancements in revenues and passenger counts, alongside an increase in load factor.

  • PLAY airlines revenues increased by 66% between years, from USD 33 million in Q1 in 2023 to USD 54 million in Q1 2024 despite capacity increase of 63%.
  • PLAY’s cash position was USD 17.1 million at the end of Q1. PLAY has since received USD 32 million following a share capital increase and will go into the summer season with a healthy cash position. Uplisting to Nasdaq Iceland Main Market is in process as planned.
  • PLAY carried 349 thousand passengers in Q1 2024, a 64% increase from Q1 2023.
  • The load factor increased from 78.4% in Q1 2023 to 81.8% in Q1 2024.
  • Q1 was operationally successful, with an on-time performance of 87.8%.
  • Earnings before interest and taxes (EBIT) in Q1 were negative, at USD 20.4 million. EBIT was negatively impacted by inaccurate news coverage of seismic activities in the Reykjanes Peninsula.
  • Total revenue per available seat kilometer (TRASK) was 4.2 US cents, the same as during Q1 2023.
  • The cost per available seat kilometer (CASK) was 5.9 US cents in Q1 2024, 8% less than in Q1 2023, mainly due to favorable trends in ETS prices impacting fuel expenses positively.
  • CASK ex-fuel is down 4.2% YoY and was 4.3 US cents.
  • Yield was USD 151, driven by strong ancillary revenue per passenger of USD 50.

Comments from PLAY’s CEO Einar Örn Ólafsson

“The Q1 2024 results were in line with our expectations. The results were heavily impacted by a drop in demand following the inaccurate global news coverage on seismic activity in the Reykjanes Peninsula in Q4 2023. We had reported that this would negatively affect our outcome and now the results are in.

“Despite this, we saw positive signs in our operations and sales. Demand started picking up drastically in January 2024 and we had record sales days in Q1 which have resulted in a healthy forward booking status. Our total revenues increased 66% between years, from USD 33 million in Q1 2023 to USD 54 million in Q1 2024. This is a true sign of how our airline is becoming more known and gaining market share.

“The motto at PLAY airlines is to keep costs low so we can continue to offer competitive airfares. In Q1 we saw our CASK decreasing 8% compared to Q1 2023 and the CASK ex-fuel also trended in the right direction for us. Our team remains focused on keeping our business lean.

“Operationally Q1 can be very challenging in Iceland due to weather conditions. Still, we saw an exceptional on-time performance of 87.8%, which is above our target of 85% on-time performance for the full year. This is something to be proud of and I am grateful for the tremendous job my colleagues at PLAY have done to deliver these results.

“In Q1, PLAY received subscription commitments from existing shareholders and other investors which amounted to USD 32 million. PLAY is therefore in a strong financial position to achieve its goals.

“The truly vital summer season is ahead of us, and I am looking forward to working with my colleagues at PLAY to deliver exceptional service to our passengers.”

Q1 Highlights

  • PLAY experienced significant growth in Q1 2024, transporting 349 thousand passengers, a 64% increase from 212 thousand in Q1 2023. The airline’s load factor also rose from 78.4% to 81.8%. Passenger demographics included 27% traveling from Iceland, 36% to Iceland, and 37% connecting passengers.
  • Operational achievements included an 87.8% on-time performance rate, surpassing the yearly target of 85%.
  • Moreover, PLAY expanded its route network, announcing new destinations and scheduled flights to Madeira, Marrakech, Vilnius, Split, Cardiff, and a winter flight to Rovaniemi.

PLAY Financial Summary

Q1 2024 Financial Summary for PLAY:

  • Revenue Growth: Total revenue rose to USD 54 million in Q1 2024, a 66% increase from USD 33 million in Q1 2023.
  • Ancillary Revenue: Ancillary revenue rose significantly by 126% compared to last year’s first quarter.
  • Cost Efficiency: The cost per available seat kilometer (CASK) decreased by nearly 8% to 5.9, and the CASK excluding fuel also improved from 4.5 to 4.3.
  • Stable Revenue Metrics: Total revenue per available seat kilometer (TRASK) remained stable at 4.2.
  • Earnings Performance: Earnings before interest and taxes (EBIT) were negative at USD 20.4 million, slightly worse than the USD 17.3 million loss in Q1 2023, influenced by external factors such as inaccurate news coverage of seismic activity.
  • Capital and Cash Flow: By the end of Q1, the cash position was USD 17.1 million, with USD 32 million added from a share capital increase.

Despite the increased losses in EBIT, PLAY demonstrated significant revenue growth and cost efficiency improvements in Q1 2024.

PLAY Q1 Financials Table

Operating statistics Q1 2024Q1 2023Change
Number of flightsno.2,3171,455862
Number of operating destinationsno.291811
Number of aircraft in operationno.1082
Percentage of arrivals on time (OTP)%88%86%2 ppt
Number of passengers000s34921264%
Available seat kilometers (ASK)mill1,28078563%
Revenue passenger kilometers (RPK)mill1,04661570%
Stage length (km)no.2,9942,8874%
Load factor%82%78%3 ppt
Seats available000s42627058%
     
Income statement    
Operating revenueUSD mill54.432.721.7
Operating expensesUSD mill59.439.719.7
EBITUSD mill-20.4-17.3-3.1
EBIT margin%-38%-53%15 ppt
Net operating resultsUSD mill-21.7-17.8-3.9
     
Balance sheet    
Cash and cash equivalents (incl. restricted)USD mill17.237.6-20.4
     
Share information    
Share price at period-endPer share4.611.5-6.9
     
Key statistics    
Airfare per passengerUSD101109-7%
Ancillary per passengerUSD504122%
Yield per passengerUSD1511501%
TRASKUS cents4.24.20%
CASK (incl. Fuel & emissions)US cents5.96.4-8%
CASK (excl. Fuel & emissions)US cents4.34.5-4%
CO₂ per RPK (grams CO₂ per RPK)no.6264-3%
CO₂ emissions in tons from jet fuelno.64,71039,81163%
World-class on-time performance and new destinations

PLAY Outlook

PLAY’s 2024 outlook is stable. The fleet will have 10 aircraft. Ex-fuel CASK will rise by 3% annually. EBIT is projected at zero. Cash flow will improve annually.

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