Friday, February 9, 2024
In 2023, PLAY transported 1.5 million passengers, including 376,000 in the fourth quarter. The yearly load factor reached 83.4%, with a fourth-quarter figure of 78.3%. The airline’s on-time performance (OTP) stood at 83.2% for the year and 78.4% for Q4. Revenue for Q4 rose to $65.7 million, up from $37.9 million in the same period in 2022, and annual revenue doubled to $282 million from $140 million in the previous year. The fleet expanded from six to ten aircraft, with Available Seat Kilometers (ASK) increasing by 89%. Earnings before interest and taxes (EBIT) showed a significant improvement, turning from a $44 million loss in 2022 to a $21 million loss in 2023, and EBIT per available seat increased by 74%. Cost per available seat kilometer (CASK) dropped by 13%, and excluding fuel and emissions, it decreased by 6% to 3.7 US cents, meeting targets. Ancillary revenue per passenger grew from $42 in 2022 to $54 in 2023, with a 55% increase in Q4 compared to the previous year. Total revenue per available seat kilometer (TRASK) rose by 7% year-over-year, with record sales days in January 2024 and strong forward bookings.
CEO Birgir Jonsson highlighted 2023 as a successful year for PLAY, noting strong financial results, the resilience of the business model, and the team’s ability to adapt to challenges. Despite a promising start, external factors such as geopolitical tensions, economic pressures, and natural events impacted the business negatively towards the year’s end. The airline expanded significantly, adding new destinations and aircraft, while maintaining competitive costs and launching new features like the Stopover program. Jonsson emphasized the importance of cost control, the impact of external challenges on financial performance, and the airline’s optimism for future growth and profitability.
PLAY achieved significant milestones in 2023, including launching flights to new destinations, introducing a stopover feature, and receiving industry recognition. The airline’s financial performance improved, with a notable increase in revenue and ancillary earnings. Operational costs were managed effectively, aligning with guidance and supporting PLAY’s competitive positioning. The company is preparing to uplist its shares to the Nasdaq Main Market in Iceland to strengthen its liquidity and support future growth. Despite canceling orders for two aircraft planned for 2025, PLAY remains focused on fleet development and aims for positive EBIT by 2025, with a long-term vision for significant growth and profitability.
Friday, February 9, 2024
