Iceland’s Play insists revised business model is starting to show positive results

Icelandic budget carrier Play has turned in a heavy full-year loss, but insists the overhaul of its business model is starting to show results. The airline generated a net loss of $66m for 2024 – approaching double the previous year’s $35m – on revenues which were up 4% to $292m. It attributes the weak performance to a “disappointing” summer, with overcapacity on the North Atlantic market and the effects of seismic activity earlier in the year. But Play states that its fourth quarter demonstrated a “positive shift” following its disclosure last October that it would move away from hub-and-spoke operations to focus on leisure traffic, charters and wet-leasing. The carrier claims evidence of an “improving trajectory” at the end of last year, as a result of the decision. Over the fourth quarter Play’s revenue declined 10% to $59m as it reduced the number of aircraft in its scheduled operation. But its operating loss for the three months reduced by 23% to $15.3m, and its pre-tax loss also improved – although the net loss more than doubled to nearly $40m, owing to a write-off of deferred tax assets. Load factor, passenger yields and unit revenues were all up in the fourth quarter.<br/>