Fly Play hf. Growth in Local Traffic and Enhanced Unit Revenue
In January 2025, PLAY Airlines carried a total of 87,415 passengers, which marks a decline compared to the 99,704 passengers flown in the same month of the previous year. This represents an 11% reduction in PLAY’s overall capacity for the month, driven by a strategic decision to lease one of its aircraft to GlobalX in Miami. This move, along with adjustments to its flight network, was made to better align with seasonal demand, as the airline had previously disclosed. The reduction in capacity is a direct consequence of this strategic realignment, which is aimed at optimizing operations and focusing on higher-yielding routes, particularly in the leisure sector.
While the overall number of passengers declined, the load factor for PLAY in January stood at 72.9%, which, though lower than the 74.8% reported in January 2024, reflects a shift in the airline’s strategy. This drop in load factor is closely tied to the airline’s increased emphasis on leisure destinations in Southern Europe. The share of leisure routes in PLAY’s network grew by five percentage points year-on-year, rising from 21% to 26% in January 2025. While leisure markets tend to generate higher yields due to the nature of the traffic, they operate primarily on a point-to-point basis, without connecting flights, which tends to result in lower load factors.
This change in focus, however, is not without its positive financial impact. As part of its strategic shift, PLAY has seen a significant improvement in its unit revenue. By capitalizing on seasonal demand and prioritizing high-yield routes, the airline has been able to boost its financial performance. January 2025 marked the fifth consecutive month of year-on-year unit revenue growth for PLAY, an achievement that further strengthens the airline’s optimistic outlook for 2025. This sustained growth in unit revenue underscores the airline’s ability to adapt to market conditions while improving its profitability.
One notable trend is the increasing number of Icelanders choosing PLAY for their travel needs. In January 2025, 32.2% of the airline’s passengers were traveling from Iceland, while 37.6% were traveling to Iceland, with the remaining 30.1% being Growth connecting (VIA) passengers. Despite a reduction in capacity, the airline saw a year-on-year growth in the number of passengers traveling from Iceland. This figure grew from 27,000 in January 2024 to 28,000 in January 2025. Similarly, the number of passengers traveling to Iceland also increased, rising from 31,000 to nearly 33,000 over the same period. This growth is a clear indication of PLAY’s strengthening position in its home market and reflects the airline’s ongoing efforts to build brand awareness.
In terms of operational performance, PLAY saw an improvement in its on-time performance (OTP) in January 2025. The airline’s OTP stood at 79.2%, up from 78.1% in the same month the previous year. This improvement is particularly significant given the challenging winter weather conditions in Iceland, which often pose difficulties for flight operations. Despite these challenges, PLAY’s commitment to maintaining strong punctuality has contributed to higher passenger satisfaction and improved operational efficiency, which in turn helps reduce costs.
Looking ahead, PLAY Airlines has unveiled an exciting flight schedule for 2025 and beyond. The airline is offering tickets for travel to a wide array of sought-after destinations in both the United States and Europe, with tickets available for travel well into 2026. On the U.S. side, PLAY will operate flights to popular cities like Boston, Baltimore, Washington D.C. via BWI Airport, and New York. These flights will offer seamless connections to major cities across Europe, expanding the airline’s reach and appeal to both American and European travelers.
On the European front, PLAY’s flight network includes a host of attractive sunny destinations. Passengers can choose from locations such as Tenerife, Las Palmas, Alicante, Lisbon, Malaga, Madeira, and the newly added Antalya in Turkey. For those looking to enjoy a city break, PLAY offers flights to vibrant European cities such as Copenhagen, Barcelona, Madrid, London, Liverpool, Amsterdam, Paris, and Dublin. This broad selection of destinations reflects the airline’s ongoing efforts to expand its offerings and cater to diverse traveler preferences.
Einar Örn Ólafsson, the CEO of PLAY Airlines, expressed his pride in the airline’s performance in January 2025, especially in terms of the increasing number of Icelandic passengers flying with the airline. He emphasized that the growth in passengers Growth traveling from Iceland signals that PLAY is becoming the airline of choice for Icelanders booking flights to sunny destinations. Ólafsson also highlighted the positive trend of more passengers choosing to visit Iceland, which he views as an encouraging sign of growing brand awareness in foreign markets.
“I am incredibly proud of my colleagues at PLAY for improving our on-time performance year-on-year in January,” said Ólafsson. “Winter months pose significant operational challenges, but our team remains committed to maintaining strong punctuality, ultimately enhancing passenger satisfaction and reducing operational costs.”
He went on to affirm PLAY’s commitment to providing excellent service and affordable flights. The airline’s strategic shift toward leisure destinations, along with its growing presence in both the U.S. and European markets, positions it well for future success. Ólafsson concluded by stating that PLAY would continue its mission to be the go-to choice for travelers seeking affordable flights to sunny destinations, to visit Iceland, or to fly between the U.S. and Europe at competitive prices.
Overall, January 2025 marked a pivotal moment for PLAY Airlines as it adjusted its strategy to align with market trends and seasonal demand. Despite a reduction in capacity and a slight dip in load factor, the airline’s financial performance remains strong, and its focus on leisure destinations has allowed it to capitalize on higher-yield routes. With a growing number of Icelandic passengers, an expanding flight network, and a commitment to improving operational efficiency, PLAY is well-positioned for continued success in 2025 and beyond. As the airline looks toward the future, its commitment to providing affordable, high-quality service will undoubtedly continue to make it a top choice for travelers in both Europe and the U.S.