Q3 results published today.
- PLAY airlines carried 521 thousand passengers in Q3 2024 and the load factor was 89%.
- On-time performance reached 89%, improving from 85% last year, making PLAY the most punctual airline at Keflavík International Airport.
- PLAY turned a USD 3.5 million profit in Q3 2024.
- Load factor increased and ancillary yield remained stable in Q3, however, ASK decreased by 5%, and airfare yield fell by 9% due to the challenging transatlantic market. As a result, total revenue for Q3 decreased from USD 110.2 million to USD 100.5 million, or 8.8%.
- Cash position improved slightly to USD 39.8 million, with a USD 0.6 million year-on-year increase. Lease payments on PLAY’s aircraft are now set up in such a way that they are higher during the summer months and lower during winter. The effect is a USD 4.3 million lower payments for the winter 2024/2025 compared to last winter.
- CASK stayed at 5.3 US cents, with CASK ex-fuel rising to 3.5 cents from 3.4 cents due to capacity changes and personnel costs.
- EBIT was USD 9.6 million, USD 3.7 million lower than Q3 2023, affected by increased capacity and competition in the transatlantic market.
- PLAY’s EBIT for the full year 2024 is now expected to fall below last year's results. The increase in capacity across the Atlantic in spring and summer 2024 had a greater negative impact than anticipated.
- PLAY is implementing a major change to its business model. PLAY will scale down its loss-making hub-and-spoke operations and focus on its profit-making point-to-point leisure network, from Iceland to Southern Europe, North Africa and Asia.
- At the same time the airline is expanding into charter/ACMI operations.
- A full transition to the new business model is expected to take place over the next 12-18 months. After the changes, leisure travel will be around 35%, up from 25% of PLAY’s business, charter/ACMI operations will be around 35% and the hub-and-spoke network will be around 30%, down from 75%.
- The airline’s financial position remains secure and stronger than at the same time last year. However, PLAY will consider getting additional capital this coming winter or spring in connection with a modified business model and its new AOC.
Read full Q3 report for 2024 here: https://lnkd.in/e9xDPPSM