Aegean improves revenue and profitability in first half of 2009
Aegean Airlines has announced its results for the first half of 2009, showing a 5% rise in revenue and improved profitability.
The 5% increase took revenues to €275.5 million. Earnings before interest, tax, depreciation and amortization and lease costs (EBITDAR) improved by 43% to €42.5 million, while earnings before tax reached €18.2 million from €7.7 million in 2008 (+135%). Finally, net earnings after tax reached €13.4 million compared to €5.5 million in the first half of 2008 (+143%).
The main factors behind the improved operating profitability during the first half are the fall in oil prices and the benefits of the fleet renewal in the areas of maintenance and fuel consumption.
During the first half of 2008, despite the difficult economic conditions, Aegean continued its route expansion strategy with the addition of six new destinations out of Athens (Paris, Berlin, Brussels, Barcelona, Venice and Paphos) while a new service to Istanbul will be shortly launched along with the initiation of flights to London Heathrow airport.
Aegean carried 2.9 million passengers in the first half of 2009, achieving a 9% year-over-year growth. The company carried 1.7 million passengers on domestic flights, 3% up on 1H08's figure, while the number of passengers carried on international flights increased by 20% to 1.3 million passengers.
Aegean notes that the fall in international arrivals in all Greek airports totalled 10%, therefore its reported 20% increase indicates significant market share gains and further reinforces its position as the largest Greek carrier in terms of passengers.
Dimitris Gerogiannis, Aegean's managing director, commented: “The conditions prevailing in the European airline sector continue to be challenging and are characterised by demand weakness and strong yield reduction, whose effect is greater than the benefits derived from lower fuel costs. Under the current market environment, accurate future forecasts of our financial performance are very difficult.
“At a time when the largest airline companies in Europe are reporting significant losses, Aegean during the first half of 2009 has taken delivery of eight new aircraft, paid dividends of €18 million and at the same time improved its cash reserves by €43 million reaching, €226 million available cash at the end of June 2009.
“Our new fleet, the trust of our passengers, the future Star Alliance membership and our healthy financial position, provide us with confidence for the continuation of our successful path.”
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