PLAY carried 392 thousand passengers in Q2 2023 with a load factor of 84.6% and an on-time performance of 84.3%. The airline reported a revenue of $73.1 million as compared to $32.5 million in Q2 of 2022.
PLAY was cash positive in Q2 2023 with cash on June 30 to $54.5 million including restricted cash. The company has no external interest-bearing debt. The company recorded a positive EBIT for the year by $04.4 million compared to negative $14.4 million in the same period 2022.
The Net loss was $4.1 million in Q2 2023 compared to negative $14.3 million in Q2 2022.
Airline’s Q2, 2023 showed ongoing growth in ancillary revenues. PLAY’s bundled fares launch in February has resulted in a 19% increase in average ancillary revenue per passenger compared to Q2 2022
Total operating expenses, including depreciation, amounted to $72.7 million in the quarter. Financial income and expenses were negative in the quarter in the amount of $5.6 million, due to interest expenses of lease liabilities.
The airline reported positive EBIT of $0.4 million, compared to negative $14.4 million for the same period last year. Q2 2023 was ahead of PLAY’s expectations.
PLAY’s total assets amounted to $ 528.1 million at the end of the period compared to $331.5 million at year-end 2022.
The company took delivery of and put into operation two aircraft during the period, bringing the total number of aircraft in operation at the end of the quarter to ten. Trade and other receivables amounted to $34.9 million and comprised mostly of acquirer’s unpaid ticket sales. At period-end, the company’s cash position was $ 54.5 million, including restricted cash. Total equity at period-end was $ 14.5 million. The company has no external interest-bearing debt.
PLAY took delivery of its tenth aircraft in Q2, the Airbus A321neo making PLAY’s fleet the youngest and most modern fleet in Europe, with an average age of approximately two years.
In Q2, PLAY broke its previous records for number of passengers carried in one month in both June and May. With strong Forward bookings the airline anticipates significantly improved booking status compared to the same period last year.
PLAY launched ticket sales to Fuerteventura and Verona during the quarter. On top of that, PLAY is adding Frankfurt to its growing network with flights starting December 14, 2023
Commenting on the results, chief executive, Birgir Jónsson said: “The financial results are better than we anticipated and support our previously stated forecast of reaching an operational profit for the full year, a real achievement for such a young airline in its second full year of operation. This spring we have successfully launched 13 new destinations and we also see existing destinations deliver better results than last year as PLAY becomes more established in the market. We are especially proud of the market share we have captured in our home market in Iceland as we saw that 41% of all Icelanders that traveled abroad in the quarter chose our airline. PLAY is truly becoming the airline of choice for the Icelandic public.”
“The second quarter was a real milestone as it sees the end of our initial ramp-up phase concluding with the delivery of our tenth aircraft in early June, a brand-new A321neo. As we have now reached the necessary operational scale after a very steep growth period for the last two years, we are also very proud to report an operational profit after the quarter, that our unit costs are on target, and that we have a healthy cash position,” Jonsson added.
During Q2 2023, PLAY operated flights to 34 destinations in Europe and North America. Capacity measured in available seat kilometers increased by 99% compared to Q2 2022. During the quarter, PLAY added 12 new destinations to its network: Aalborg, Amsterdam, Athens, Billund, Dusseldorf, Glasgow, Hamburg, Washington DC, Porto, Venice, Warsaw, and Toronto. During the same time, six seasonal destinations were re-opened. In Q2 2023, PLAY flew 392 thousand passengers which is more than double the number of passengers flown in Q2 2022, when PLAY flew 181 thousand passengers.
PLAY anticipates carrying 1.5 to 1.7 million passengers in 2023 while achieving a positive EBIT for the full year. The airline is projected to generate a total revenue of $280-310 million in 2023. The guidance is in line with the guidance published in the Q1 results.
PLAY is working towards finalizing additions to its fleet in the next two years. The airline is in preliminary negotiations to add one aircraft for the 2024 summer season and four aircraft in 2025. Further fleet additions and various fleet development scenarios in the years following 2025 are also being explored. PLAY will announce further details as soon as these negotiations have been concluded.