Icelandic carrier Play is deepening its transition toward a hybrid business model, expanding wet-lease operations and doubling down on point-to-point leisure flying as part of a broader shift away from lower-yield transatlantic connections.
In its first-quarter (Q1) financial results, the Reykjavik-based airline confirmed it will deploy four Airbus aircraft under an ACMI agreement with SkyUp Malta Airlines starting this summer, up from the three aircraft originally planned. The contract runs through the end of 2027.
Play first disclosed in March that it had reached an agreement with an operator in Eastern Europe—as well as securing an air operator certificate (AOC) for its newly established Maltese subsidiary PLAY Europe—but the identity of the partner was not revealed at the time.
“The first aircraft will be deployed on May 12, and four aircraft will be operating for SkyUp from the beginning of July,” Play CEO Einar Örn Ólafsson said on a webinar following the publication of the results. “This part of the business will provide us with a stable, predictable and profitable income.”
One of Play’s 10 A320-family aircraft was also allocated to an ACMI project for charter airline GlobalX in Miami during the first three months of 2025. The carrier therefore expects to operate a fleet of seven narrowbodies from Reykjavik Keflavik Airport during the peak summer months, including one that has been leased on a short-term basis to support the announced schedule.
Total revenue for the three months to the end of March fell 15% year-over-year to $46.4 million, driven by reduced capacity and the later timing of Easter, which fell in April this year. Passenger numbers declined to 286,000, down from 349,000 in Q1 2024, while the load factor dropped to 77.2%, compared to 81.8% in the prior year. However, net losses narrowed slightly from $27.2 million to $26.8 million.
Play is continuing to restructure its network around core European leisure markets, adding new seasonal destinations like Faro, Portugal, and Antalya, Turkey, in summer 2025. Leisure-focused capacity from Iceland is expected to grow 7% year-over-year, despite the fleet reduction, as the airline trims its North Atlantic operations down to just three U.S. destinations—Baltimore, Boston and New York Stewart.
According to data provided by OAG Schedules Analyser, the carrier plans to offer about 492,000 seats during the summer 2025 season, down from more than 621,000 during summer 2024. About 80% of the capacity will be deployed to some 28 destinations in Europe.
“We made a clear strategic decision to put greater emphasis on leisure destinations out of Iceland, and the results are already visible,” Ólafsson said. “We have expanded our network of popular holiday destinations, and leisure capacity continues to grow steadily. This is in line with our vision of creating a more robust, seasonally balanced business model that supports strong performance year-round.”
Play ended Q1 2025 with $21.1 million in cash, marking an increase of $3.9 million from the same period last year. Salaries and personnel expenses totaled $12.5 million across 480 full-time employees. “Change is never easy, but it is necessary—and we have shown that we have both the talent and the determination needed to succeed,” Ólafsson added.
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