News of the Play airline’s poor performance has resulted in a steep descent in its stock price. On July 23, Play stock declined by 17% in one day following the board of directors’ decision to annul its existing performance predictions. Icelandair annulled its previous performance prediction in May.
In conversation with RÚV, aviation industry consultant Jón Karl Ólafsson cites several reasons for Play’s turbulent performance. Jón says airlines had expanded rapidly after Covid, while the number of passengers has stagnated.
According to Jón, the airlines have two main methods in reacting to the worsening situation: employee layoffs or price increases. “We’re seeing signs of Icelandair decreasing the number of employees. It could be trickier to increase prices.”
So if you happen to have stock in Play, fasten your seatbelt, and note the location of the nearest emergency exit.
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