AEGEAN: Higher Load Factors and traffic lead to a significant rebound in second quarter profitability

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Th FINANCIAL — AEGEAN announces first half 2017 results with consolidated revenue at €450.7m, 12% higher compared to the respective period in 2016 and total passenger traffic rising by 6% to 5.6m passengers.

During the second quarter of the year, revenue increased to €298.9m, 17% up compared to the respective quarter in 2016, without any increase in overall flight activity. The improvement in load factors by 9 ppt to 81% from 72%, resulted to a rebound in profitability with pre-tax and after-tax earnings at €23.2m and €15.8m, respectively, compared to pre-tax and after-tax losses of €2.1m and €2.2m in the second quarter of 2016. The qualitative as well as quantitative improvement stemmed from targeted network adjustments as well as investment in international markets that continues to yield positive results.

Total passengers carried for the second quarter increased by 7% with international network continuing to be the main driver with 12% growth. More specifically, international traffic from Athens International Airport grew by 17% with AEGEAN being the largest contributor to market’s growth, according to AEGEAN.

During the First Half of the year, net result after tax was a loss of €20m, improved by €3.7m compared to the First Half of 2016. Operating cashflow strengthened substantially to €119.5m from €87m, resulting to cash and cash equivalents of €337.4m [1] at 30.06.2017, after the pay out of dividend for FY16 of €28.5m.

Mr. Dimitris Gerogiannis, Managing Director, commented:

“We had a very strong start to the summer season. The maturing process of our international network, more effective capacity management and commercial policy as well a strong demand for Greece, have all contributed. Our performance in our Athens hub with 102 destinations continues to stand out, delivering 17% growth in international traffic.

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Given the traffic performance of July and August, we are highly confident for the performance of the third quarter of the year which substantially determines our full year results. Seasonality continues to be a key challenge with a weak first and last quarter of the year, especially as long as Greek customer demand remains low.”


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