Aegean Airlines Announces Improved First-Half Results

Aegean Airlines A320
A320 | Aegean Airlines

Aegean Airlines announces its first-half 2019 results with consolidated revenue at EUR 519.4 mil., 14% higher compared to 2018 and net losses narrowing to EUR 13.0 mil. from EUR 13.8 mil. in 2018, including the effect of the implementation of IFRS 16 for the first time.

The adoption of IFRS 16 has a negative impact on results of EUR 3,8 mil. Therefore, net losses on a comparable basis, excluding IFRS 16 would have been EUR 9.2 mil. from EUR 13.8 mil. in 2018.

Strong performance during the second quarter, drove the improvement on first half results. The Group offered 12% ASK capacity increase in the second quarter aiming to support the extension of the tourism season. The increased effort resulted in a 10% overall traffic increase and a 15% increase in international traffic, achieving a rate of growth significantly higher than overall air arrivals to the country. Consolidated Revenue recorded a 20% increase in the second quarter, with a 30% increase in net earnings to EUR 22.2 mil. in the second quarter of 2019 from EUR 17 mil. in the respective 2018 period.

Total traffic in the first half of the year reached 6.5 million passengers, 9% higher than 2018. Passengers carried on domestic flights increased by 4% to 2.8 million. International network traffic which accounts for 76% of consolidated revenue, increased by 12% to 3.7 million passengers. Load factor improved to 82.2% from 81.7%.

Cash and short-term financial investments reached EUR 602.3 mil. at period end 30.06.2019 while loans outstanding reached EUR 200 mil. following the issuance of the 7-year bond. 

Mr. Dimitris Gerogiannis, Aegean Chief Executive Officer, said:

“We have followed our path of consistent growth by investing additional capacity in our international network. Our effort to extend the tourism season by flying more, earlier than usual, in the months of April-May and increase the utilization of our fleet contributed to positive results, despite the overall incoming tourism slowdown. Gradually extending the tourism season remains critical for both Greek tourism and Aegean.

“The evolution of the third quarter, which materially determines our annual result based on our current load factors and revenues remains positive, despite the marginal increase in total air traffic arrivals in our country. We continue to work at full speed for the induction of our new Airbus A320 neo aircraft in our fleet in 2020”.

In March 2019 Aegean successfully issued a seven-year EUR 200 mil. Common Bond Loan, with a 3.60% coupon rate.

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