Aegean reports increased 2013 net earnings

Aegean Airlines has reported its financial performance for 2013, with revenue up by 21% to €682.7 million and net earnings after tax reaching €66.3 million, compared with losses of €10.5 million in 2012.

Aegean carried 6.8 millon passengers in 2013, 12% more than in 2012 and achieving an increase in load factor to 79% from 74%.

The airline stated that the revenue growth and profitability were driven largely by the performance of the international network, where Aegean grew its passenger numbers by 14% to 4 million. Athens as well as the airline’s six regional bases around Greece all registered substantially positive growth rates in international traffic.

The acquisition of Olympic Air was completed in October 2013, following the approval of the European Commission. In 2013, Olympic Air generated revenue of €167.4 million, passengers carried reached 2 million (1.7 million domestic and 0.3 million international) while net losses after taxes were at €13.9 million.

As the acquisition was completed at the end of October, Olympic Air’s figures were consolidated into group results only for the last two months of the year. As a result, consolidated group revenue was €699 million and net earnings after tax stood at €57.8 million.

On a pro-forma basis and taking into account the full year performance of both companies, total revenue was €847 million and net earnings after taxes reached €52.5 million. The total number of passengers carried by both companies amounted to 8.8 million, with 4.3 million carried on international flights.

Dimitris Gerogiannis, Aegean’s managing director, commented, “In 2013 we have achieved several key milestones. We have successfully expanded our international network while achieving substantial profitability. We have completed the acquisition of Olympic Air, allowing us to target substantial economies of scale which will further support our cost efficiency and ability to grow. Already in the first few months we are seeing the first benefits of network synergies. The integration of administrative, commercial and support services is progressing well. Naturally further effort and time is required to realise the planned synergies and increased competitiveness.

“Local consumer demand continues to be weak, however apparently stabilising at lower levels. Following a particularly strong 2013, incoming leisure demand outlook for 2014 continues to develop positively for Greece while competitive capacity to the country is also substantially increased. Our strategy of expanding both from Athens as well as our regional airport bases will be continued for 2014,” Gerogiannis added.

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