Aegean first quarter loss increases

Aegean Airlines has reported its key financial and operating results for the first quarter of 2016 (1Q16) with consolidated revenue at €147.9 million, which was 7% higher compared with the first quarter of 2015 (1Q15).

Passenger traffic rose by 9% to 2 million, with 6% more flights, as the company invested more capacity even in the winter months, continuing to serve new destinations which yield positive results only in the summer.

International passenger traffic rose by 12%, while the number of passengers carried on the domestic network rose by 6%, despite significant increases in competitors’ capacity.

Net losses after tax stood at €21.5 million compared with losses of €8.3 million in 2015. The larger fleet (with 11 more Airbus aircraft since the beginning of 2015), which is underutilised in the winter, the support of new international destinations even in the winter months, as well as the decline in the domestic fares, weighed on results of the seasonally weak quarter.

Dimitris Gerogiannis, managing director, commented, “The delivery of our new aircraft is now complete so we start the year with a significantly larger – and younger – fleet and network compared to early 2015. We anticipate collecting on our investment in the summer season through increased traffic flows, new services and the efficiency of our new fleet. Winters, which are weak in incoming tourism demand, do cost more as we grow and as the domestic consumer remains weak due to the economy; this in turn increases our reliance on the quality of the demand of the summer season.

“We have achieved growth even in domestic traffic against increasing route coverage by competitors, on the back of additional travel options and connectivity offered to our customers and through lower fares,” he added. ““As far as international traffic as well as demand trends are concerned, winter performance was encouraging, however the quality of demand and our results will be determined in the coming summer months.”

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