PLAY announces readjustment of business model

PLAY announced (16-Oct-2024) a change to its business model, further increasing its focus on leisure markets out of Iceland while reducing its business of connecting passengers between North America and Europe. The carrier's point-to-point services, mainly between Iceland and southern Europe, have been consistently profitable, however yields on its hub-and-spoke operations across the Atlantic has been disappointing, particularly in 2024, due to increased competition. In response, PLAY plans to reduce its destinations in North America and northern Europe by mid 2025, while expanding its leisure markets in southern Europe. PLAY has therefore applied for an air operating licence (AOC) in Malta to support operating part of its fleet outside of Iceland, with the process expected to be completed by spring 2025. The first aircraft under the Maltese AOC will be based in Tenerife, operating to Reykjavik Keflavík and Akureyri, as well other destinations. Following these changes, PLAY expects to operate six to seven aircraft on its Icelandic AOC and three to four on the Maltese. PLAY emphasised its financial position remains secure, with no current plans to raise capital. However, 2024 EBIT is expected to fall below 2023 levels, due to the increase in capacity across the Atlantic in spring and summer 2024 having a greater negative impact than initially anticipated. Further details will be provided during the carrier's 3Q2024 presentation on 24-Oct-2024. [more - original PR]