New Iceland-based carrier, Play, has seen passenger numbers continue to increase following its launch this summer.

For its first month of flight operations in June, the airline welcome 9,899 passengers with the load factor at 42 per cent.

August showed a promising trend, as ticket sales increased and the outbound market from the North Atlantic destination recovered.

Load factor in August was 46 per cent, and Play carried more than 17,300 passengers.

The load factor is expected to rise again in September when figures are released.

Another significant milestone came in August as Play signed two letters of intent with two aircraft lessors.

When completed, these arrangements will increase the fleet size from three to nine aircraft, while Play is also in final negotiations to lease a tenth aircraft.

The first letter is for two new A320neo aircraft, manufactured in 2020.

The aircraft will be delivered in the first quarter of 2022.

The second deal is for three A320neo and one A321neo 2023 aircraft, which will come into operation in spring 2023.

All four aircraft will be delivered new directly from Airbus to Play though the lessors.

The carrier is thus on track to launch operations to North America in 2022, a statement said.

Play currently employs 131 people and the expansion will require further hiring of around 150-200 people.

In April, the new carrier raised US$47 million through private placement, while a further US$34 million came through an initial public offering.

Play is now listed on the Nasdaq First North Growth Market Iceland.