Aegean reports profit for first nine months of 2013

Aegean Airlines has reported that revenue for the nine-month period of January-September 2013 inclusive reached €532.4 million, up by 21% compared with the same period last year, and that net earnings after tax reached €59.2 million compared with losses of €8.7 million in 2012.
The company commented that revenue growth and strong profitability were driven by the performance of its growing international network which was further boosted by favourable demand conditions for incoming leisure during the summer season as well as the maturing of routes begun in previous years.
Aegean carried 3.2 million passengers on international flights during the nine-month period of 2013, a 15% increase compared with that period in 2012. The load factor on international flights rose by 6 percentage points to 80%, substantially contributing to the profitability improvement. Aegean carried 9% more passengers on international routes from/to Athens while a 22% growth was achieved on international traffic from/to its other six regional bases in the country. Domestic passengers on the airline’s network remained at 2012 levels of 2.1 million. Total domestic and international passengers increased by 9% to 5.3 million.
“Our consistency in the development of our international route network has been rewarded as we have benefited from the strong trend of incoming leisure traffic,” remarked Dimitris Gerogiannis, Aegean’s managing director. “Our expansion to new markets and the maturing of our brand and presence internationally, combined with the cost initiatives implemented, have finally yielded significant profit, albeit following three consecutive lossmaking years.
“The results of recently acquired Olympic Air, which will be lossmaking for the full year, are not included in the 9-month results as the acquisition was completed on 23 October 2013. Olympic Air results will be included and will burden full year results,” Gerogiannis added. “Nevertheless, we are optimistic as we now have the opportunity through synergies to target and achieve sustainable growth. It is encouraging that our early post acquisition network initiatives supported with attractive promotional fares have resulted in a marginal but positive increase of traffic in several domestic destinations already in November 2013 following four consecutive years of traffic decline.”

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