Fly Play hf.: Financial Results Q2 2025

Core Viewpoint - Fly Play hf. is undergoing a strategic transformation focusing on leisure routes and profit-driven network planning, despite facing challenges such as adverse foreign exchange movements and maintenance delays [5][7][9]. Financial Performance - Total revenue for Q2 2025 was USD 72.1 million, down from USD 78.3 million in Q2 2024, reflecting network adjustments and maintenance delays [13][15]. - Net loss for Q2 2025 was USD -15.3 million, compared to USD -10.0 million in Q2 2024 [15]. - Operating costs decreased to USD 71.0 million in Q2 2025 from USD 74.1 million in Q2 2024, primarily due to reduced operations and lower fuel costs [3][4]. Operational Statistics - The number of flights decreased to 2,368 in Q2 2025 from 2,712 in Q2 2024, and the number of operating destinations fell from 36 to 31 [2]. - The load factor was 83.2%, down from 85.9% in Q2 2024, indicating a shift in the passenger mix due to strategic changes [11]. - On-time performance improved to 91.3% in Q2 2025 from 89.0% in Q2 2024 [2][3]. Strategic Initiatives - The company is increasing leisure capacity by 15% year-on-year, despite operating fewer aircraft, with a focus on point-to-point holiday traffic [5][11]. - Four aircraft are on ACMI lease with SkyUp through 2027, providing stable income with minimal commercial risk [6][9]. - A convertible bond issue secured USD 20 million in new funding, enhancing the company's financial position [9][15]. Future Outlook - The transition to a point-to-point network is expected to be completed by the end of October, with operational shifts aimed at reducing operating expenses [16]. - Q3 net income is projected to align with last year, with expectations of a significantly smaller winter loss and a return to profitability in 2026 [17].