Play Expands ACMI Fleet, Refocuses on Leisure Market

Reykjavik-based Play is deepening its shift to a hybrid business model by expanding ACMI wet-lease operations and refocusing on point-to-point leisure flying. In its first-quarter results, the Icelandic carrier confirmed it will deploy four Airbus A320s under an ACMI agreement with SkyUp Malta Airlines this summer, up from three, in a contract that runs through 2027. The first aircraft will enter service on May 12, with all four operational by early July, providing stable, predictable income.

Play first disclosed in March that it had secured an air operator certificate for its new Maltese subsidiary, PLAY Europe, and reached a partnership with an unnamed Eastern European operator. One of Play’s ten A320-family jets also flew under an ACMI charter for GlobalX in Miami during Q1, leaving the airline expecting to operate a fleet of seven narrowbodies from Reykjavik Keflavik Airport during peak summer months, including one leased on a short-term basis.

Total revenue for the quarter fell 15 percent year-over-year to $46.4 million, driven by reduced capacity and the later timing of Easter. Passenger numbers declined to 286,000 from 349,000 in Q1 2024, and load factor slipped to 77.2 percent from 81.8 percent, while net losses narrowed slightly to $26.8 million from $27.2 million.

Despite a leaner fleet, Play is restructuring around core European leisure markets, adding seasonal summer service to Faro in Portugal and Antalya in Turkey for 2025. This adjustment reflects a deliberate retreat from lower-yield North Atlantic services, which have been scaled back to just three U.S. points—Baltimore, Boston and New York Stewart—citing strong holiday demand in Europe as the primary growth driver.

Data from OAG Schedules Analyser shows Play plans to offer about 492,000 seats for the summer 2025 season, down from more than 621,000 seats in summer 2024. Approximately 80 percent of capacity will be deployed to some 28 European destinations.

“We made a clear strategic decision to put greater emphasis on leisure destinations out of Iceland, and the results are already visible,” said CEO Einar Örn Ólafsson. He added that expanding popular holiday routes and balancing capacity seasonally aligns with the airline’s vision of a more robust business model that delivers strong performance year-round.

Play ended Q1 with $21.1 million in cash, an increase of $3.9 million compared with the same period last year, and reported salary and personnel expenses of $12.5 million across 480 full-time employees. Ólafsson noted that change is challenging but necessary, and that the airline’s talent and determination are key to its success.

The airline’s ACMI strategy builds on its existing charter pipeline and benefits from the regulatory flexibility of its Maltese AOC. By securing PLAY Europe’s certification, Play can rapidly redeploy its Airbus aircraft across multiple markets under wet-lease agreements, diversifying its income streams beyond seasonal leisure flying.

By combining predictable wet-lease income from ACMI contracts like the SkyUp Malta agreement with targeted point-to-point leisure flying, Play aims to stabilize its revenue base and align capacity more closely with market demand. The carrier expects all eight leased A320s to be integrated within 18 months of the first delivery, marking a new chapter in its journey toward a sustainable hybrid model.

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