Einar Örn Ólafsson, the CEO of Iceland’s PLAY Airlines, recently discussed his increased involvement in the company, the potential for growth in Icelandic aviation, the lessons learned from the failure of WOW Air, and the impact of the Boeing crisis on aircraft shortages. Ólafsson, a seasoned business professional with experience in various industries, took over as CEO of PLAY in April, after being actively involved in the airline’s development from its inception.
Following the collapse of WOW Air, PLAY has stepped in to fill the gap in low-cost service in Iceland and capitalize on the growing tourism industry. Ólafsson highlighted the importance of maintaining a lean, low-cost model to ensure the airline’s success and avoid the mistakes that led to WOW’s downfall. He emphasized the need for sustainable growth while staying true to PLAY’s core business model.
PLAY’s plans for the future include doubling its fleet to around 20 aircraft, maintaining high aircraft utilization, and expanding its route network to key destinations in North America, Canada, the U.S., and Europe. While specifics on future destinations were not revealed, Ólafsson mentioned a focus on cities within a 5-hour flight range from Iceland to maximize aircraft utilization and operational efficiency.
One key aspect of PLAY’s success lies in its dedicated and friendly cabin crew, which has earned the airline a reputation for excellent service. Ólafsson emphasized the importance of maintaining this customer-focused approach, as happy passengers are more likely to make repeat purchases and recommend the airline to others. The airline aims to continue delivering exceptional service while exploring options for flexible capacity through wet-leasing agreements.
Financially, PLAY has shown promising growth, with revenues increasing significantly in the first quarter of this year. Despite challenges such as the impact of seismic activities in Iceland, PLAY reported a strong load factor and positive trends in passenger numbers. Ólafsson outlined plans to achieve breakeven or positive earnings next year, with a focus on operational efficiency and cost savings to ensure the airline’s long-term financial stability.
In light of the ongoing Boeing crisis and capacity constraints in the narrowbody aircraft market, Ólafsson remains optimistic about PLAY’s future prospects. While the industry faces challenges due to aircraft shortages, he believes that the current situation might actually benefit airlines by preventing oversupply and maintaining a competitive environment. With a clear focus on growth, operational efficiency, and customer satisfaction, PLAY is poised to become a leading player in the Icelandic aviation market.
