Aegean reports improved load factors, reduced losses

Leading Greek carrier Aegean Airlines has announced its first half 2018 results with consolidated revenue at €455.7m, up one per cent compared to the respective period in 2017 and net losses narrowing to €13.8m from €20m in 2017.

Total passenger traffic increased by 7% to 5.9m passengers, with the company offering 3% more capacity in ASKs and 4% in total available seats. Passengers carried on domestic flights increased by 5% to 2.7m, while the number of passengers that travelled on its international network increased by 8% to 3.3m.

The airline also reported that load factor improved to 81.7% from 79.2%, reflecting commercial initiatives and increased network synergies. International traffic from Athens International Airport grew by 13%, with the company initiating 11 new international destinations from Athens.

Operating cashflow strengthened to €163.2m from €127.4m, resulting to cash and cash equivalents of €395.8m at 30.06.2018, a net increase of €58.4m relative to June 2017 even following advances of €33.6m related to the recent purchase agreement with Airbus.

Rising tourism demand

Dimitris Gerogiannis, the company’s CEO, said: “Following a very successful 2017 we managed to further improve our load factors and passenger volumes through our service efforts, conservative focused capacity expansion for a second consecutive year and the optimisation of our network despite substantial competitive capacity increases. Tourism demand for Greece continues to develop and is supportive but substantially seasonal.

“We have opened 11 new routes that expand our offering and support hub flows through Athens. We continue to develop our product with additional bank loyalty programmes, and new booking & selection options. Most importantly we are now committed to the A320 neo family which will bring additional efficiency, range and improved service possibilities to our customers.

“The outlook for the third quarter, which substantially determines full year results, remains positive, despite competitive capacity increases. Higher fuel prices will continue to affect our costs, only partly mitigated by our fuel hedging policy.”