Ukrainian operator SkyUp’s Maltese division has emerged as the partner to which Icelandic carrier Play Airlines is supplying aircraft under its new diversification strategy.
Play is deploying four of its 10 Airbus A320neo-family jets for damp-lease to SkyUp MT from spring-summer this year.
The agreement will run to the end of 2027.
Play recently secured its own Maltese air operator’s certificate and is transferring several aircraft to this operation as part of a revised business plan.
This business plan aims to reduce reliance on transatlantic services, in favour of point-to-point flights to leisure destinations, and offer wet-lease capacity to other operators.
Over the first quarter its operating loss of $21.7 million and net loss of $26.8 million were largely unchanged from the same period last year.
Play points out that the quarter, unlike last year, did not benefit from an early Easter holiday period.
One of Play’s aircraft was also placed on a leasing assignment during the quarter, and the equivalent of a second was unavailable owing to maintenance.
Revenues were down by $8 million as passenger numbers fell, while operating expenditure also declined by the same quantity.
Chief executive Einar Orn Olafsson insists the company is “delivering on both commitments” in its new business plan, and that the outlook “is positive”.
“We made a clear strategic decision to put greater emphasis on leisure destinations out of Iceland, and the results are already visible,” he says.
“We have expanded our network of popular holiday destinations, and leisure capacity continues to grow steadily.”
He adds that the lease to SkyUp MT also underlines the carrier’s ability to adapt to market opportunities and optimise the use of its fleet.
Unit revenues remained “essentially unchanged”, year-on-year, says Olafsson, adding: “This highlights the underlying strength of our revenue generation and the resilience of our business model.”
Play will operate a fleet of seven aircraft during the peak summer months, including one aircraft on short-term lease to support its schedule.
