PLAY Airlines recently shared its Q1 2025 performance results, continuing progress with its strategic goals.
Overall, the first quarter saw PLAY reduce its year-on-year Q1 loss to USD 28.6 million. This represented an improvement from 2024’s Q1 loss of USD 27.2 million.
The carrier also saw appreciable reductions in operating costs as it switches to a stronger focus on leisure travel and charter operations.
CEO Einar Örn Ólafsson expressed satisfaction with the airline’s achievements, emphasizing two core priorities: expanding leisure travel markets and securing profitable ACMI (Aircraft, Crew, Maintenance, and Insurance) opportunities. “We’re delivering on both fronts,” Ólafsson stated, highlighting the airline’s focus on leisure destinations from Iceland.
Traffic Performance Reflects Strategic Shift
In Q1 2025, PLAY carried 286,000 passengers, down from 349,000 in Q1 2024. The load factor reached 77.2%, compared to 81.8% the previous year.
This shift aligns with PLAY’s emphasis on leisure routes in Southern Europe, where capacity grew by 17% year-over-year.
Leisure markets offer higher yields but operate primarily on a point-to-point basis, reducing connecting traffic and affecting load factors.
One aircraft was dedicated to an ACMI project with GlobalX in Miami, optimizing the route network for seasonal demand.
The timing of Easter—falling in April 2025 instead of March 2024—also influenced results. Passenger demographics included 32% traveling from Iceland, 40% to Iceland, and 28% connecting passengers.
Customer satisfaction soared, with the Net Promoter Score (NPS) jumping 48% from 33 in Q1 2024 to 49 in Q1 2025. This improvement reflects PLAY’s commitment to enhancing service quality through dedicated staff efforts.
Financial Overview: Stability Amid Change
PLAY reported total revenue of USD 46.4 million in Q1 2025, compared to USD 54.4 million in Q1 2024. The decrease stems from strategic network adjustments, including reduced capacity and schedule changes to match seasonal demand.
Despite lower revenue, EBIT remained stable at negative USD 21.7 million, compared to negative USD 21.3 million in Q1 2024, signaling improved cost efficiency.
The net loss for the quarter was USD 26.8 million, slightly better than USD 27.2 million in Q1 2024. PLAY’s cash position strengthened, and year-end cash stood at USD 23.6 million, reflecting sound financial management.
Strategic Focus on Leisure and ACMI
PLAY’s business plan continues to prioritize leisure travel from Iceland. In 2025, leisure capacity will increase by 7% compared to 2024, even with fewer aircraft operating from Keflavík Airport.
The airline will manage a fleet of seven aircraft during peak summer, including one short-term leased plane to support its schedule. New destinations, such as Faro, Portugal, and Antalya, Turkey, will launch in summer 2025, catering to holiday travelers.
Additionally, PLAY secured a significant ACMI agreement with SkyUp Malta Airlines, part of the JoinUp Group. From spring/summer 2025 through 2027, four of PLAY’s ten aircraft will support this partnership, reinforcing the airline’s diversified revenue streams.
Looking Ahead
PLAY Airlines is poised for growth in 2025, balancing its leisure market expansion with strategic ACMI projects. By focusing on high-yield routes, improving customer satisfaction, and maintaining cost efficiency, PLAY demonstrates resilience in a competitive industry.
With new destinations and partnerships on the horizon, the airline seeks to deliver better value to passengers and stakeholders alike.
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