By Ilaria Grasso Macola
Inflation will not hit Icelandic low-cost carrier Play as much as bigger competitors, according to chief executive Birgir Jonsonn.
“Some people will not travel because of [the cost of living],” he told City A.M. “But if they do, then I think more people will look for the most economical way of travelling and this is where we fit perfectly into the mix.”
Launched in 2019, the airliner only started operations in June 2021 and, since then, has grown significantly in terms of both passenger numbers and numbers.
“We will fly around 800,000 people this year and as a comparison we did fly 100,000 people last year,” Jonsonn added. “So that’s a massive growth.”
In the second quarter of this year, Play carried 182,000 people across its six aircraft, while revenue amounted to $32.5m – up 238 per cent on the first quarter.
Compared with last year’s levels, the airline’s losses increased to $14.3m as Play’s aircraft capacity increased by three and the company had yet to reach economies of scale.
“Now we’re up to six [planes] and this is where we can confidently say that we will have an operating profit in the second half of the year,” he continued.
According to the chief executive, the positive forecasts were grounded in the hub and spoke model it operates.
The company in April expanded its operations into the US, connecting North American cities such as Washington and Boston to EU destinations via Iceland.
“This is not something we have wrapped up, this has been done in Iceland since the 1950s and 1960s,” Jonsonn said.
Play serves three US routes – Washington, Boston and New York – with plans to open a second base at Washington Dulles in April.
In addition to the Washington route, the carrier will open a base in Liverpool in October.
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