AEGEAN

AEGEAN AIRLINES: Profitable 2nd quarter following recovery in passenger traffic | Strong trend in demand continues in the 3rd quarter.

AIR NEWS BUSINESS

AEGEAN announces its financial and operating results for the second quarter and the first half of the year. Passenger traffic has significantly increased by 171% in the second quarter of 2022, reaching 3,3 mil. passengers from 1,2 mil. in the corresponding quarter of 2021. Load factors have also improved, at 79,2%, 23 p.p. higher compared with the second quarter of 2021. AEGEAN has restored its capacity at 86% in the second quarter of 2022, following the easing of Covid-related measures.

The significant increase in flight activity and demand has contributed to a 201% increase in consolidated revenue in the second quarter of 2022, which stood at €327,3 mil. from €108,6 mil. in the second quarter of 2021. Despite the more than double fuel cost (compared with 2019), the Group reported Profit before taxes of €17,7 mil. and Profit after taxes of €10,8 mil. in the second quarter of 2022 from Losses after taxes of €33,9 mil. in the same period in 2021.

Overall, for the first half of the year, consolidated revenues increased by 193%, with passenger traffic up 187% and available seats 101% compared to the first half of 2021.

In the first half of 2022 Losses after taxes amounted to €27,7 mil. from losses of €78,4 mil.

As of 30.06.2022, cash and cash equivalents balance was €602,1[1] mil.

aegean
Mr. Dimitris Gerogiannis | © MONEY & TOURISM

Mr. Dimitris Gerogiannis, AEGEAN’s CEO, commented:

“After two challenging years, it is a fact that revitalized demand, especially strong to Greece, supported traffic recovery. AEGEAN, following additional A320neo deliveries, invested by expanding its network from its main hub in Athens, but also from Thessaloniki, Heraklion and Chania, gradually increasing its capacity, flying to 138 destinations by the end of June.

We managed to return to profitability in Q2 despite the significant increase in fuel costs well ahead Q3 which is always   strongest in contribution of revenue and profitability for the year.

This positive trend continued during the summer months, where we offered 98% of our pre-pandemic ASK’s and achieved Load factors of 84% and 3,2 mil. passengers in the two summer months July and August, supporting further our profitability forecast for FY 2022.

We certainly still have challenges and uncertainties ahead of us. We continue to invest with a steady pace to improve our product quality and manage our network and fleet efficiently”.

Consolidated Results

(in € mil.) Second Quarter 2021 Second Quarter 2022 % First Half

2021

First Half

2022

%
Revenue 108,6 327,3 201% 152,8 448,1 193%
EBITDA1 3,9 53,8 1264% (10,1) 37,7
Profit/ (Loss) before taxes and interest (27,5) 24,4 (75,1) (22,3)
Pre-tax Profit/ (Losses) for the period (34,8) 17,7 (91,8) (30,6)
Net Profit /(Losses) for the period (33,9) 10,8 (78,4) (27,7)

Note

1.Earnings before net interest and financial expenses, income taxes, depreciation and amortization

Passenger Traffic

  Second Quarter 2021 Second Quarter 2022 % First Half

2021

First Half

2022

%
Domestic Passengers (‘000) 667 1.394 109% 918 2.111 130%
International Passengers (‘000) 523 1.834 251% 732 2.619 258%
Total Passengers (‘000) 1.190 3.228 171% 1.650 4.730 187%
Load Factor (RPK/ASK) 55,8% 79,2% 23,4pp 53,1% 74,5% 21,5pp
Passengers per flight 79 122 54% 72 114 58%

Aegean at a glance

(in € mil.) Second Quarter 2021 Second Quarter 2022 % First Half

2021

First Half

2022

%
             
Revenue 108,6 327,3 201% 152,8 448,1 193%
EBITDA 3,9 53,8 1264% (10,1) 37,7
Pre-tax earnings/(Loss) (34,8) 17,7 (91,8) (30,6)
Net earnings/(Loss) (33,9) 10,8 (78,4) (27,7)
Total passengers

(in thousands)

1.190 3.228 171% 1.650 4.730 187%
Average passengers per flight 79 122 54% 72 114 58%
Load factor – Scheduled services (RPK/ASK) 55,8% 79,2% 23,4pp 53,1% 74,5% 21,5pp
Load factor – Scheduled services (Pax/AVS) 56,0% 78,8% 22,8pp 52,2% 73,9% 21,7pp
Average sector length (km) 698 911 31% 685 882 29%
RASK

(Revenue per ASK, in € cents)

6,15 7,79 27% 5,90 7,11 21%
Yield

(Revenue per RPK, in € cents)

11,11 9,9 -11% 11,22 9,56 -15%
CASK (EBT level, in € cents) 8,08 7,38 -9% 9,33 7,58 -19%
CASK (EBT level, in € cents) – excl. fuel costs 7,00 5,32 -24% 8,27 5,72 -31%

Consolidated Income Statement

 (in € mil.)

Second Quarter 2021 Second Quarter 2022 % First Half

2021

First Half

2022

%
             
  Scheduled Services 89,2 277,8 211% 123,2 379,3 208%
  Charter 5,4 19,0 251% 7,8 21,6 177%
  Other 13,9 30,5 119% 21,9 47,2 116%
Total Revenue 108,6 327,3 201% 152,8 448,1 193%
  Other operating income 2,5 8,0 220% 4,8 14,8 209%
  Employee benefits (14,7) (29,1) 99% (25,6) (51,3) 100%
  Aircraft fuel (19,6) (88,6) 351% (28,2) (121,3) 330%
  Aircraft maintenance (19,6) (36,6) 87% (29,6) (56,1) 90%
  Overflight expenses (6,4) (17,1) 167% (9,7) (26,2) 171%
  Ground handling expenses (8,4) (18,1) 114% (13,1) (28,6) 118%
  Airport charges (8,7) (20,0) 130% (13,1) (29,7) 126%
  Catering expenses (3,7) (9,7) 165% (5,1) (14,5) 185%
  Distribution expenses (8,0) (21,4) 166% (11,9) (31,7) 167%
  Marketing & advertising expenses (3,2) (5,0) 59% (4,4) (7,9) 82%
  Other operating expenses (13,6) (30,7) 126% (25,3) (50,5) 99%
  Leases (1,2) (5,2) 318% (1,8) (7,4) 312%
EBITDA 3,9 53,8 1264% (10,1) 37,7
  Depreciation (31,4) (29,3) (65,0) (60,0)
EBIT (27,5) 24,4 (75,1) (22,3)
EBIT margin -25,3% 7,5% -49,1% -5,0%  
  Financial results (7,3) (6,7) (16,7) (8,3)
Pre-tax Profit/(Loss) (34,8) 17,7 (91,8) (30,6)
EBT margin -32,1% 5,4% -60,0% -6,8%  
  Income Tax 0,9 (6,9) 13,4 3,0
Net Profit/(Loss) after tax (33,9) 10,8 (78,4) (27,7)

Balance Sheet Aegean Group- Summary

(in € mil.)         December 2021 June

 2022

             
Total Fixed Assets         814,3 997,6
Cash & Cash Equivalents1         462,1 579,6
Financial Assets Available for Sale         12,3 22,5
Other Current Assets         251,7 438,5
Total Assets         1.540,4 2.038,2
Total Equity         213,6 259,0
Lease Liabilities         414,2 553,3
Loans         346,2 347,1
Other Liabilities         566,3 878,8
Total Equity and Liabilities         1.540,4 2.038,2

Note:

  1. Includes restricted cash of €19,5 mil. in 31/12/2021 and 30/06/2022 respectively.

Cash Flow Aegean Group- Summary

(in € mil.)         Jan-Jun 2021 Jan-Jun 2022
             
Net cash flows from operating activities         105,3 257,7
Net cash flows from investing activities         (5,1) (79,2)
Net cash flows from financing activities         (12,9) (79,6)
Net (decrease)/ increase in cash and cash equivalents         87,3 98,9
Cash at the beginning of the period         437,1 442,6
Foreign exchange difference impact in cash         2,6 18,5
Cash at the end of the period         527,0 560,1

Group operating figures

  Second Quarter 2021 Second Quarter 2022 % First Half

2021

First Half

2022

%
             
Capacity            
  ASKs (in millions) 1.805 4.301 138% 2.673 6.512 144%
  Total available seats (000) 2.148 4.125 92% 3.208 6.438 101%
  Total Block Hours 20.268 44.097 118% 30.590 67.445 120%
  Total Sectors Flown 15.022 26.379 76% 22.905 41.483 81%
  Average capacity per flight 143 156 9% 140 155 11%
  Average sector length (km) 698 911 31% 685 882 29%
Passengers (΄000)            
By type of service:            
  Schedule passengers 1.164 3.090 165% 1.619 4.584 183%
  Charter passengers 26 137 435% 31 146 368%
By network:            
  Domestic 667 1.394 109% 918 2.111 130%
  International 523 1.834 250% 732 2.619 258%
Total number of passengers 1.190 3.228 171% 1.650 4.730 187%
RPKs (in millions) 999 3.386 239% 1.404 4.841 245%
Pax/flight 79 122 54% 72 114 58%
Load factor- Scheduled (Pax/AVS) 56,0% 78,8% 22,8pp 52,2% 73,9% 21,7pp
Load factor- Scheduled (RPK/ASK) 55,8% 79,2% 23,4pp 53,1% 74,5% 21,5pp

[1] Includes financial assets of €22,5 mil. and restricted cash of €19,5mil

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