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Top 5: Examining PLAY’s Current Leading European Routes By Available Seat Miles
PLAY is an Icelandic low-cost carrier that has filled the gap left by WOW. Let’s discover the airline’s top European routes.
Strategy change
The cuts have undoubtedly been a part of its plans, as, on October 16, 2024, the Icelandic airline announced changes to its business model to reflect the reality of the market. As a result, it would focus on offering direct services from Iceland to Europe and significantly cut back its capacity on flights connecting passengers between Europe and North America.
“The point-to-point part of PLAY’s schedule, primarily flights between Iceland and Southern Europe, has been popular and profitable from the beginning. However, as previously reported, the airline’s yields on its hub-and-spoke part of the business across the Atlantic has been disappointing, particularly in 2024.”
PLAY reiterated that the North American market has experienced substantial changes, including a general increase in the supply of capacity that has negatively affected its financial performance. Thus, the carrier told in advance that by mid-2025, its network would shift from North America and North Europe to emphasize destinations in Southern Europe.
Photo: Vincenzo Pace | Simple Flying
In addition, PLAY said that it would apply for an air operator’s certificate (AOC) in Malta, which would enable it to utilize its aircraft in other markets other than Iceland. At the time, it announced a wet lease partnership with US-based GlobalX Airlines, which would run between November 1 and March 15.
Flightradar24 data showed that out of the ten Airbus A320neo
(six) and A321neo
(four) aircraft, one A321neo, registered as TF-PLA, has been operating flights on behalf of GlobalX out of Miami International Airport
(MIA) and other Floridan airports.
“This process is expected to be completed by spring 2025. PLAY plans to move its first aircraft under the new Maltese AOC to Tenerife, from where it will be operated to Keflavík and Akureyri in Iceland and to other destinations.”
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Iceland’s PLAY Makes Drastic Cuts To North America & Strikes Partnership With GlobalX In Miami
PLAY cited an increased supply of seats on the transatlantic market, which negatively impacted demand for its hub-and-spoke model flights via Iceland.
Worse than expected results
On October 24, PLAY announced its Q3 2024 results, detailing that they were worse than it had expected. Still, the airline ended the three-month period with earnings before interest and taxes (EBIT) of $9.6 million and net profit of $3.5 million, the latter being $1.2 million lower than in Q3 2023.
Photo: Kevin Hackert | Shutterstock
The airline reiterated that its declining unit revenues were driven by significant capacity growth to/from North America, with PLAY citing that from Keflavik, there were 15% more seats to North America and 7% additional seats on Transatlantic flights year-on-year (YoY).
Still, its cost per available seat kilometer (CASK) improved by $0.06, primarily driven by lower fuel prices. PLAY’s ex-fuel CASK was 4% YoY, according to the low-cost carrier’s Q3 results presentation.
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Publish date : 2025-01-11 02:01:00
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