Fly Play (PLAY) Q2 2024 earnings summary

Executive summary

• Operated 10 aircraft for the fourth consecutive quarter, flying 442,000 passengers, a 13% year-over-year increase, with a load factor of 85.9%–86% and on-time performance of 89.3%.

• Celebrated 3-year anniversary, received Best Low Cost Airline in Northern Europe by Skytrax for the second year, and entered the Top 100 global airlines.

• Expanded global distribution with PLAY Connect, GDS integration, and new partnerships, enabling ticket sales to more destinations.

• Employee satisfaction remains high, with 20% internal promotions so far this year.

• Added new destinations, operating 36 routes in Q2.

Financial highlights

• Q2 2024 revenue reached USD 78.3 million, a 7% increase year-over-year, driven by a 12% increase in ASK and higher load factor, but with lower yield.

• EBIT loss of USD 4.5–5 million, down from a USD 0.9 million profit in Q2 2023, impacted by Easter timing, seismic activity, and market softness.

• Ancillary revenues rose 18% to USD 24.3 million, cargo revenue up 44%, but basic airfare declined.

• Cash balance at quarter-end was USD 51.4 million, bolstered by a USD 31.7 million share capital increase.

• Non-fuel CASK increased 8% to 3.8 cents, total CASK up 3% to 5.4 cents due to staffing, maintenance, airport, and marketing costs.

Outlook and guidance

• EBIT for the full year expected to be considerably higher than 2023, with a much stronger year-end cash position.

• Q3 RASK expected to be slightly lower year-over-year, but Q4 RASK and forward revenue trends projected to be significantly higher due to reduced capacity.

• Network adjusted for seasonal demand: 10% and 25% fewer seats to North America in Q3 and Q4, with increased focus and seat growth in European and African leisure markets.

• Cost-saving initiatives underway, including fuel optimization, automation, and workforce management.

• 2025 bookings are three times higher than at the same point in 2024.