Fly Play hf. — Earnings Release 2021

Nov 8, 2021

OCTOBER 2021 - FLY PLAY HF.
Operational Statistics
PLAY

Key Performance Indicators (KPI's)

October 2021

	October 2021	Year to date
Number of Passengers	24,941	67,614
Load Factor %	67.7%	52.3%
Available seat kilometers (ASK) in million	94.7	334.6
Revenue Passenger kilometer (RPK) in million	64.1	174.9
Stage length (KM)	2,518	2,540
	October 2021	Year to date
---	---	---
CO₂ per RPK (grams CO₂ per RPK)	76.6	96.1
CO₂ emissions in tonnes	4,915	16,814
	October 2021	Year to date
---	---	---
On-time performance (arrivals)	93.4%	95.9%

Note: PLAY uses commas and thousand separators according to English traditions.

www.flyplay.com
NOVEMBER 8 2021

---

OCTOBER 2021 - FLY PLAY HF.
Operational Statistics
PLAY

STEADY LOAD FACTOR GROWTH AND NEW OFFICE

Load factor was 67.7%

Ticket sales increased again in October after being affected by the COVID-19 pandemic this summer

93.4% on-time arrivals in October 2021

NEW OFFICE IN LITHUANIA

In December, PLAY will open a new office in Vilnius, Lithuania and expand partially in this new location. PLAY's headquarters and current flight operations will remain in Iceland, including all flight and cabin crew. The Vilnius office will host various support and technical functions. A local General Manager has already been retained, and a recruitment drive for other roles begins soon. PLAY expects to reach about 15-20 employees in Vilnius within a few months. Locating some of PLAY's administrative functions in Lithuania will ensure access to a larger talent pool of specialists in IT services, digital development, marketing, finance, and customer service. The new office also allows PLAY to develop a more international company culture and create relationships with new suppliers, service providers, and other partners at cost-effective and favorable terms. PLAY is becoming an international company with operations in continental Europe and North America, as well as Iceland. PLAY is competing with airlines that have low-cost structures and access to specialist skills in the international market. Therefore, it is critical for PLAY to be able to meet the competition at an equal level. A low-cost mindset and a lean company structure are crucial for PLAY to offer low prices in a competitive market. The opening of the Vilnius office is a significant step to securing a low-cost foundation as the company enters the transatlantic market and prepares for future growth.

In October, PLAY carried 24,941 passengers. The load factor was 67.7%, compared to 52.1% in September. Although vaccination rates in the markets served by PLAY are increasing, the number of new confirmed COVID-19 cases is rising. Therefore, the uncertainty associated with the COVID-19 pandemic will remain for the foreseeable future. PLAY is will prepared to weather the uncertainty with flexible operations and strong liquidity position.

NEW DESTINATIONS

On October 12, PLAY announced three new destinations in Scandinavia for summer 2022. Services to Gothenburg, Stavanger and Trondheim will start in May 2022 and will operate two times weekly. All three cities currently do not have direct service to Iceland. On October 26, PLAY announced that it would add weekly service to Palma de Mallorca and Malaga in Spain to its schedule for summer 2022. Palma de Mallorca and Malaga are PLAY's fifth and sixth destinations in Spain after Barcelona, Alicante, Tenerife and Gran Canaria. The next months will see the expansion of PLAY's network as new destinations in Europe and North America get added.

"We are very pleased to see the demand returning in the market as our load factor reaches 68% for October, a very impressive increase from the 52%, we reported in September. Our cash position is better than we anticipated, our operational costs are in line with our business plan, and the company has no interest-bearing dept. The outlook for bookings is healthy for the coming months, which gives us ample reason for confidence going forward."

W

Birgir Jónsson, CEO

www.flyplay.com

NOVEMBER 8 2021