PLAY has reported a first quarter net loss of $17.2 million on a year-over-year increase in revenue to $32.7 million, up from $9.6 million during Q1 2022. At March 31, 2023, PLAY had cash totaling $37.6 million and no external interest-bearing debt.
On Thursday (April 27, 2023), PLAY announced their first quarter financial results for the period ending March 31, 2023. The carrier reported a first quarter net loss of $17.2 million on a year-over-year increase in revenue from $9.6 million to $32.7 million. At the end of the first quarter, PLAY had cash and unrestricted cash totaling $37.6 million, and no external interest-bearing debt. The Airline’s Q1 cost per available seat kilometer (CASK) was 6.4 cents, while costs excluding fuel (CASK-ex) came in at 4.5 cents.
In Thursday’s announcement, PLAY’s CEO, Birgir Jónsson, said,
“We are pleased to report that the performance in the first quarter was in line with our expectations and delivered healthy growth and positive developments in key areas. The first quarter of the year is always challenging in the aviation business with low demand and yields and relatively high costs due to various preparations for the all-important summer season. We see very positive signs for the year as our booking flow is very strong, costs are under control and major external factors such as oil prices have been developing positively. A clear sign of this is the fact that we can report a positive cash flow after the first quarter, which is an important achievement for a young airline in a ramp-up phase. We are also providing insights into the year ahead and how we see the next quarters developing, ending in a positive operating profit for the full year. Of course, our business environment is very fluid and subject to many fast-moving external variables, but for now, we see very positive signs for the future.
“Our load factor was 78.4%, very acceptable during this seasonal period of low demand. We also carried 212 thousand passengers, four times more than in the same period last year. We are proud to report an impressive on-time performance of 85.5%, demonstrating our continued commitment to operational excellence. Additionally, we saw very positive trends in our ancillary revenues and average yields, highlighting the effectiveness of our commercial strategy and giving us confidence for a good summer season.
“In the quarter PLAY experienced record sales. We saw positive development in working capital resulting in an increase in cash, ending the quarter with a healthy cash position of USD 37.6 million. The quarter’s EBIT results were in line with our expectations in this period of ramping up of operations. We must bear in mind that PLAY is in the process of increasing its yearly revenue up to twenty times compared to 2021, ending the year 2023 with revenue of around USD 280-320 million. Our booking status is significantly stronger than at the same time last year, reflecting the continued positive momentum of our business. Furthermore, we are excited to continue expanding our network, with 37 destinations planned for 2023, including thirteen new ones.
“We are now entering the most exciting and fun times of the year for us at PLAY, when we welcome around 200 new colleagues to the team, put 4 brand-new aircraft into operation, and launch many new destinations. The market is receiving us with open arms, as demonstrated by the fact that we see our average revenue growing even as we have nearly doubled our capacity.
“I want to express my gratitude to our dedicated team of people at PLAY who have made this all possible. Their hard work and commitment to providing exceptional service to our passengers has been a key factor in our ongoing growth. We are confident in our ability to deliver strong results and look forward to building on this momentum into the future.”
During Q1 2023, PLAY shattered all previous ticket sale records, and forward bookings remain strong. During 2023, the airline will offer service to 37 destinations, including 13 new cities. The carrier has also added more capacity to popular leisure destinations in Southern Europe, with year-round service to Lisbon, Barcelona and Madrid, while service to Athens has been extended. PLAY took delivery of two additional Airbus A320neo Family aircraft during the first quarter, expanding their fleet to eight aircraft, and expects to take delivery of one more aircraft during the second quarter.
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 18 European and U.S. destinations. In 2023, Play will expand their fleet of Airbus A320/321neos to 10 aircraft, and increase their network to 37 destinations.
Source: PLAY Airlines