Icelandic budget carrier Play has trimmed its second-quarter loss to $4.1 million, down from a loss of $14.3 million in the same period last year.
The airline – which started operating in June 2021 – said earnings before interest and taxes (Ebit) exceeded its expectations, reaching $400,000, compared to a negative Ebit of $14.4 million in the same period last year.
Play now expects to make an annual operating profit for the first time this year.
Chief executive Birgir Jónsson said: “The second quarter was a real milestone as it sees the end of our initial ramp-up phase concluding with the delivery of our 10th aircraft in early June, a brand-new [Airbus] A321neo.
“We are very proud to report an operational profit after the quarter, that our unit costs are on target, and that we have a healthy cash position.”
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Play flew 392,000 passengers during the three months, more than double the number of passengers flown in Q2 2022 (181,000).
Overall, the airline expects to carry up to 1.7 million passengers in 2023.
Revenue for the quarter was $73.1 million, compared to $32.5 million in Q2 2022, as capacity, routes and sales increased year on year.
Play operated to 34 destinations across Europe and North America in the quarter, expanding its network with 12 new destinations and reopening six seasonal destinations.
The overall load factor increased by 10 percentage points, from 75% in Q2 2022 to 85% in Q2 2023.
The airline is in negotiations to add one aircraft for the 2024 summer season and four aircraft in 2025.
Jónsson added: “The financial results are better than we anticipated and support our previously stated forecast of reaching an operational profit for the full year, a real achievement for such a young airline in its second full year of operation.
“Along with the launch of new destinations, we also see existing destinations deliver better results than last year as Play becomes more established in both our home market and beyond.”