PLAY Airlines Fined for Late Insider Info Disclosure
Icelandic low-cost carrier PLAY Airlines has been fined ISK15.8 million (USD123,900) for breaching European Union rules on the timely disclosure of insider financial information. The penalty was issued by the Financial Supervisory Authority (FSA) of the Central Bank of Iceland following an investigation into the airline’s 2022 financial reporting practices.
According to a settlement agreement, PLAY accepted the FSA’s findings that it failed to disclose material financial information within the required timeframe. The case centered around the airline’s interim third-quarter 2022 financial results, which were discussed during a board meeting on October 27, 2022. The company only disclosed the financials publicly on November 3, 2022.
PLAY argued that the early financial figures were broad forecasts and not sensitive enough to influence share prices. However, the FSA determined that the draft results contained price-sensitive information that qualified as insider data under EU market regulations. The delay in disclosure was therefore deemed a regulatory breach.
PLAY formally acknowledged the FSA’s conclusions and confirmed the matter is now closed.
On November 3, 2022, the airline reported a third-quarter loss of USD2.9 million and a nine-month loss of USD28.4 million. To improve its financial position, PLAY announced plans to raise ISK2.3 billion (USD15.8 million at the time) through a discounted share offering.
The penalty underscores the importance of transparency and compliance with EU financial disclosure standards for publicly traded companies, especially those operating in highly regulated sectors like aviation.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com