Play records $8.1 million loss amid challenging market conditions in Iceland

The Icelandic airline Play recorded a loss of $8.1 million, approximately 1.1 billion Icelandic krónur, in the second quarter of the year. Despite the disappointing figures, the CEO remains optimistic, claiming that the recent months have not been significantly worse than expected.

According to the airline’s second-quarter report, 2024 has proven to be less favorable than originally forecasted. Einar Örn Ólafsson, the CEO, acknowledged that market conditions have been particularly challenging, with an increase in supply in the North Atlantic market as many airlines expand operations there. Additionally, there has been a decrease in the number of tourists arriving in Iceland compared to previous years, making the market tougher than before.

Both Icelandic airlines, Play and Icelandair, reported combined losses approaching 13 billion krónur in the first quarter. Although both companies experienced a year-over-year increase in revenue, operational losses were greater than during the same period last year.

Currently, there are no plans for Play to pursue mergers with other airlines. However, operational adjustments will be made, including a reduction in transatlantic flights, a market that has been particularly difficult. Conversely, Play intends to increase service offerings to Southern Europe and Africa.

As for the airline’s funding situation, it appears that a new capital raise is not imminent. The CEO expressed confidence in the stability of the company, asserting that its performance has improved year over year since its inception. Looking ahead, he anticipates continued growth and intends to maintain services for Icelanders seeking sunny destinations.