Aegean reports loss for first nine-months of 2010

Aegean Airlines’ results for the nine-month period to 30 September 2010 show revenue declining by 3% at €466.2 million, earnings before taxes showing a loss of €1.9 million with the net result after taxes posting a loss of €8.4 million.

The post-tax result included the burden of a €6.6 million extraordinary social contribution charge imposed on 2009 earnings.

The total number of passengers travelling with Aegean declined by 3% to 4.9 million in the nine-month 2010 period. The company’s international expansion strategy yielded a 12% increase with 2.4 million passengers travelling on the international network. Traffic on the domestic network, however, declined by 15% to 2.5 million passengers, reflecting the weak domestic consumption conditions.

“Our financial performance continues to be adversely affected by the severe recession of the Greek economy,” explained Dimitris Gerogiannis, Aegean’s managing director. “Our investment in strengthening our international network helped our third quarter results, while at the same time supported the Greek tourism industry. Our network and fleet adjustments, our efforts to improve costs and productivity and our investment in new systems have helped to mitigate the severe consequences of the Greek economic crisis. The fourth and seasonally weak quarter is expected to be lossmaking, leading with certainty to a substantially negative result for the year as a whole.

“Within this environment, despite the significant challenges faced and the necessary network and cost adjustments that are being implemented, we remain confident that our strategy is sound. Our commitment in quality is a given but at the same time we are well aware of the fact that Greek consumers are increasingly price sensitive. Therefore we will continue and indeed intensify our efforts to further improve our productivity and competitiveness to secure our long term objectives,” Gerogiannis concluded.

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