Aegean increases profit in 2014

Aegean Airlines has announced improved results for 2014, driven by network expansion and Olympic Air synergies, reporting a rise in net earnings to €80.2 million from €52.5 million in 2013, the increase including a positive one-time effect of €11.7 million in income tax provisions.

The carrier’s consolidated revenue increased by 7% to €912 million, based on a passenger traffic increase of 14% to 10.1 million passengers, the highest ever achieved by a Greek airline.

The group generated operating cash flow of €112 million, resulting in cash and short-term investments of €218 million at year end, despite significant pre-delivery payments in relation to the new Airbus order.

Domestic traffic increased by 15% driven by demand stimulation on lower fares and strong connecting traffic. International traffic rose by 13%, aided by performance in Athens where traffic rose by 20% on the back of Aegean’s network expansion which supported the city’s strong tourism recovery.

“In 2014 we reached another milestone and achieved passenger traffic in excess of 10 million passengers, offering the biggest network ever operated by a Greek airline with 119 destinations,” remarked Dimitris Gerogiannis, Aegean’s managing director. “Joining forces with Olympic Air has resulted in benefits for our passengers, the Greek economy and regional employment, and of course our shareholders. Synergies with Olympic Air as well as strong connectivity and positive tourist flows were the main factors that boosted our results.

“For 2015 we plan to take delivery of new aircraft and expand significantly our network, mainly out of Athens, but also Larnaca in Cyprus with the addition of new destinations and more frequencies on existing routes,” Gerogiannis added. “At the same time, competition is expected to intensify, the recovery path of the Greek economy remains uncertain, whereas significant volatility on the US dollar and oil markets are affecting key cost items.

“On the positive side, even in this uncertain environment, Greek tourism and especially arrivals to Athens seem resilient. It is important to highlight that we maintain a long-term view, targeted at improving the country’s and Athens’ connections, securing our competitive advantage of our main hub and also upgrading Greek travel and tourism product,” Gerogiannis concluded.

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