Fly Play hf.: PLAY’s Strategic Shift Drives Improved load

Core Insights - PLAY airlines experienced a significant decrease in passenger numbers, carrying 116,023 passengers in June 2025 compared to 173,109 in June 2024, due to a strategic shift in its business model [1] - Despite the reduction in total passengers, the load factor improved to 86.8% in June 2025, up from 86.0% in June 2024, indicating better network planning and operational discipline [2][3] - The airline celebrated its 4th anniversary in June 2025 and relaunched flights to Aalborg, Denmark, expanding its service to three destinations in the country [4] Business Model Shift - The company has altered its business model to focus on scheduled operations in Iceland and leasing operations, which has led to a more disciplined and focused operation [1][3] - The strategic shift towards leisure destinations in Southern Europe has historically resulted in higher fares, although it typically has lower load factors due to less connecting traffic [2] Operational Performance - In June 2025, 41.9% of passengers were departing from Iceland, 33.0% were arriving, and 25.1% were connecting passengers, showcasing a diverse passenger base [3] - The airline maintained strong operational reliability with an on-time performance of 88.8% in June 2025, reflecting effective execution of its strategic initiatives [3][5] Strategic Comments - The CEO of PLAY highlighted that the performance in June reflects the positive impact of the strategic shift, emphasizing the reduction of excess capacity and focus on targeted leisure routes to create a stronger yield environment [5] - The improved load factor and operational discipline are seen as indicators of better network planning and alignment with demand, contributing to the overall success of the restructuring efforts [5]