Posted on: 11 February 2011 by Ross McSweeny
Aegean Airlines reports that it carried 6.23 million passengers in 2010, 5% less compared to the previous year.
On its international network, with the addition of new routes, the company carried 3.06 million passengers, achieving 9% year-on-year growth. Owing to weak demand conditions, passengers carried in the domestic network declined by 16% to 3.17 million passengers with a significant reduction in average fare.
Revenue for 2010 reached approximately €590 million while net losses after taxes are estimated at €22-24 million, including extraordinary social contribution tax of €8 million. Demand weakness in the domestic market and the rise in the price of fuel were the main contributors to the loss.
To address the effects of the Greek economy crisis, the company proceeded during 2010 with a significant fleet and capacity reduction, mainly in the domestic network. Additionally, new systems applied due to the Star Alliance entry yielded positive results in the efficiency and cost reduction. The operation of a single fleet type by the end of 2011 comprising young Airbus A320s is expected to yield further benefits.
Dimitris Gerogiannis, managing director, commented, “Despite the difficult economic environment, the company will continue during 2011 to develop its international presence, with prudent gradual steps, in line with its strategic direction of the last five years. At the same time, we will continue to invest in further improving our productivity and unit cost efficiency towards international best in class levels. This is essential to enable us to provide innovative services to our customers while having attractive fares and offers which are especially valuable during the current crisis.”