Losses at Icelandic budget carrier Play deepened in the last quarter amid volcanic eruptions in the country.
The airline reported a loss of $4.5 million against $900,000 in the same three months last year.
Passenger numbers rose by 13% year-on-year to 442,000 as the fleet rose by one to 10 aircraft.
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The majority of passengers (44%) were connecting via Iceland to onward destinations.
Chief executive Einar Orn Olafsson said earnings in the three months were “hit by the lingering negative impact of the seismic activity in the Reykjanes peninsula and by the fact that Easter fell on Q1 this year”.
He added: “We are also fighting the development of fewer tourists visiting Iceland, which is a clear effect of a big push our neighbouring countries have done in direct marketing to consumers.
“They spent around €21 million (£17.7 million) in tourism advertising in 2023, 92% of which was government funded.
“Iceland needs a big marketing effort to attract visitors to our country and I believe that it can be done with a joint effort between the Icelandic tourism industry and the government.
“Safety plays a key factor when tourists select their destination and the misconception of Iceland not being safe due to seismic activity needs to be reduced or preferably eliminated. That is achievable with a proper campaign aimed at consumers.”
Play is bidding for trade ticket sales by going live with major global distribution systems (GDSs), enabling travel agencies around the globe to book flights.
“While the partnership is relatively new, early signs in markets that are more accustomed to GDS distribution are positive,” the airline said.