PLAY (Iceland) (OG, Reykjavik Keflavik) says it has agreed with AerCap to replace the A321-200NY(XLR) planned for delivery during the current summer season with an A320-200N as the low-cost carrier adjusts its network plans due to the rising fuel costs.
"Due to the high price of fuel, PLAY has decided to change its fleet plan for summer 2022, and instead of leasing an Airbus A321neo(LR), PLAY will lease an Airbus A320neo at more favourable terms. As a result, the planned three times weekly Orlando International service that was supposed to start on September 30, 2022, will not commence," the airline said in its quarterly financial report.
The incremental A320neo will deliver to PLAY in June 2022.
PLAY said that as fuel costs are a relatively more significant factor for longer routes, launching the Reykjavik Keflavik-Orlando route in the current pricing environment was not viable. The airline also suspended its planned flights to Stuttgart Manfred Rommel. PLAY said it would continue to monitor its network to react flexibly to changes in the demand structure.
Following the adjustment, PLAY plans to operate three A320-200Ns and three A321-200Ns during this summer season. All three A321neo and two of the A320neo have been delivered so far. The number of aircraft in the fleet remains unchanged. The carrier said its long-term plans remain unchanged: it intends to operate ten aircraft in 2023 (six A320neo and four A321neo), twelve in 2024, and fifteen in 2025. It does not mention the (LR) variant in any of its long-term fleet projections. While the first ten aircraft are commitments from lessors, talks regarding the aircraft due in 2024 and 2025 continue.
The airline posted a USD11.3 million net loss for the first quarter of 2022 saying that the result was in line with its expectations, as it had yet to reach the necessary economies of scale. PLAY underlined that the launch of North American routes in April caused an immediate spike in its "via" traffic and a rise in fares.
