Aegean Airlines: First profitable since the beginning of the pandemic in the third quarter – Doubling turnover

LAST UPDATE: 10.13

Aegean Airlines recorded the first profitable quarter since the beginning of the pandemic in the third quarter of 2021, doubling its turnover compared to the corresponding period of 2020.

The organic profitability of the group amounted to € 59 million, however in the nine months the organic result remains loss-making.

The company recorded 3.3 million passengers in the quarter.

EBITDA at the nine-month level amounted to 157.2 million euros, while earnings after taxes amounted to 28.8 million euros.

According to the corporate announcement, “with the validity of the European Vaccination Certificate and the removal of most of the travel restrictions in the third quarter of 2021, AEGEAN attempted with a larger offered capacity, more than doubling the size of turnover and passenger traffic abroad. compared to the corresponding period of 2020.

The Group offered 4.6 million seats and carried a total of 3.3 million passengers, with traffic amounting to 1.5 million passengers on the domestic network and 1.8 million passengers on the foreign network. The occupancy rate for the period was 70.3%, improved compared to the third quarter of 2020, which was 65.7%, but still significantly lower than the pre-pandemic occupancy rate of 87 , 7%, in the corresponding period of 2019.

Consolidated revenue amounted to € 333.9 million, up 115% compared to the third quarter of 2020. Organic Profit before Tax on a comparable basis amounted to € 58.8 million in the third quarter of 2021 from Loss before Tax amounting to € 36.9 million in the third quarter of 2020.

It is important to note that the third quarter of 2021 is the first quarter since the start of the pandemic that the Group records organic profitability, offering 76% of the capacity in kilometer positions (ASK’s) compared to the corresponding pre-pandemic third quarter of 2019. During this period, the company operated with direct flights abroad from its bases in Athens, Thessaloniki, Heraklion, Rhodes, Chania, Corfu, Mykonos and Larnaca, supporting the gradual return to normalcy and the tourist product of the country.

The nine months 2021, which includes the effect of the second lockdown that lasted until the beginning of May 2021, significantly reducing the company’s activity in the first half, turnover amounted to € 486.8 million, 42% higher than in the first nine months of 2020. The Group carried 5 million passengers from 4.4 million in the first nine months of 2020, while Losses before taxes on a comparable organic basis amounted to € 32.9 million, compared to 237.7 million Losses before taxes the corresponding period of 2020.

Upon completion of the share capital increase of € 60 million in June 2021, which was a condition for the completion of the process, the Company received in early July 2021 the EU-approved state aid for the partial restoration of the damage due to the pandemic for 2020. In the total result of the quarter, the amount of aid reduced by the fair value of the warrants given to the Greek State was recognized. In addition, an impairment provision relating to the restructuring of the aircraft fleet was recognized. The total effect of the three aforementioned factors amounted to total non-recurring income of € 62.7 million, which are not included in the above organic profit data for the quarter / nine months.

Taking into account the above extraordinary non-organic income, Profit before Tax amounted to € 121.5 million in the third quarter of 2021 and € 29.8 million in the first nine months of 2021. Cash and cash equivalents amounted to € 543.5 million on 30.09.2021, despite the significant increase in advances to Airbus during the third quarter ($ 43 million) for upcoming aircraft receipts, as well as the repayment of loans amounting to € 92
million. After repayment, the total amount of bonds and loans amounted to € 344 million on 30/9/2021 from € 440 million on 31/12/2020.

Mr. Dimitris Gerogiannis, CEO, stated in this regard:

“We have made effective use of the growing demand for our country and the gradual lifting of restrictions. Once again we have adapted our program flexibly, responding to opportunities from major markets such as Germany, France, Belgium, the Netherlands and Austria. , but also in markets with significant restrictions such as England, Russia, the Nordic countries and Israel.

We have completed the process of raising our funds and accelerated the advances to Airbus for the immediate receipt of 22 additional new aircraft of the A320 / 321 neo family for 2022-2023, strengthening the competitiveness of the company and the services to our passengers. We managed our operating costs effectively. Despite the partial, 75%, utilization of our fleet, but also the backlog in fullness in relation to the pre-pandemic sizes of 2019, we managed to be one of the few listed airlines in Europe, which presented a positive organic result in the strong in third quarter demand.

The pandemic is of course still here and its challenges are great, especially this coming winter, which in our country is under normal conditions weak in demand. However, we believe that 2022 will be stronger, already from the second quarter of the year, allowing us better quality of operation and better return on the evolving investments of fleet upgrade and services “.