AEGEAN: Excellent year in 2023, even more positive outlook for 2024 | 19.5 million seats, from 7 bases, covering 47 countries, with 249 routes

2023 was a very successful year for AEGEAN, where both the commercial and financial performance of the company recorded an all-time high, presenting one of the best results compared to other listed European airlines and in a highly competitive environment of high interest rates and increasing cost elements, said, among others, during his address to the Annual General Meeting of AEGEAN Shareholders, CEO Mr. Dimitris Gerogiannis. In conclusion, he confirmed the company’s commitment to raise the bar even higher, to continuously improve its services and to innovate in order to meet the evolving needs of its passengers.

Mr.Gerogiannis stressed that 2023 was a very successful year for AEGEAN, following a very strong 2022, a year in which both our commercial and financial figures reached historic highs. And he elaborated further:

• In 2023, AEGEAN achieved dynamic growth in its flight operations, offering 18.9 million seats, 3 million more than in 2022.
• The addition of 30 new destinations to the network, reaching a total of 180 destinations and the significant increase in capacity worked effectively in an upward environment of inbound demand and growing dynamics of Greeks for travel abroad.
• The 11.2 million seats offered on the international network in 49 countries and the increased interconnectivity between destinations helped to welcome 15.7 million passengers in 2023, recording a further improvement in load factors, which reached 86% in the third quarter.
• For another year, the country attracted a high level of competitive activity at all airports compared to the rest of Europe, taking advantage of strong demand.
• In this highly competitive environment of high interest rates and rising cost elements, AEGEAN showed one of the best results compared to other listed European airlines.
• The airline in 2023 recorded one of the largest increases in available seats, exceeding pre-pandemic levels, while several carriers still fall significantly short of pre-pandemic levels, set record revenues and maintained a competitive cost structure, elements that contributed to the second best margin compared to European carriers.
• At the same time, we fully repaid all the loans we had received during the pandemic, and we closed the last remaining obligation from that period, the redemption, payment and cancellation of the warrants, paying the Greek state the amount of €85.4 million.
• We continued uninterrupted with our investment plan and proceeded to extend the order for the new aircraft by exercising the relevant rights.
• The Group took delivery of 9 new Airbus A320 neo family aircraft in 2023, having taken delivery of a total of 28 Airbus A320 and A321 neo family aircraft since the end of 2019.
• The weight-free (lease or loan) aircraft totalled 11 (2 Airbus neo, 6 Airbus CEO , 3 ATR 72 -600) from just 4 at 31/12/2019.
• In fourth quarter 2023 we increased our total order of new aircraft to 50 from 46 previously, increasing the number of A321neo aircraft, and a few days ago we announced a further conversion of our order, whereby 4 new Airbus A321neo aircraft are being converted to Long Range aircraft and will have the capability to fly longer range flights that can reach and serve markets outside the EU, mainly in the Gulf, India and Central Africa.
• Additional features of these aircraft include satellite Wi-Fi connectivity, entertainment screens (IFE) in every seat and a highly upgraded Business Class product with lie flat seats.

Continuing, the AEGEAN CEO underlined: “At the core of all our actions remains the constant and continuous daily upgrading of the travel experience we offer our passengers.

1. An experience that includes our Wi-Fi onboard service on more than 35 aircraft, through which we provide high-speed Internet throughout the flight.
2. Our three brand new, impressive Business Lounges (in the onboard and non-Schengen areas of Athens International Airport, as well as at Thessaloniki airport). In the coming months, in Larnaca, AEGEAN’s fourth upgraded, aesthetically and qualitatively, lounge will also be ready to welcome our passengers.
3. We have significantly enriched our loyalty programme with new partnerships.
4. We upgraded our Business class product, as well as our on board Food service, reinforcing AEGEAN’s image as a company that offers a high quality travel experience.

As we invest in the dynamics of Athens and Thessaloniki, in 2023 we offered the largest network in our history with 180 destinations in 49 countries, adding both winter and summer destinations.

• We created special programmes and partnerships to mitigate seasonality in the Greek periphery, further enhancing the interconnectivity of our network with international air hubs, in the context of our important new and established partnerships.
• At the same time, we are investing in the training of our people, but also in the progress of the country itself, partnering with CAE, the world leader in aviation training for pilots and cabin crews, to create the first modern Flight Simulator and Crew Training Centre in Greece.
• Within 12 months, the upgrade of the building was completed, which has the infrastructure to support a total of 7 flight simulators as well as specialized cabin crew training equipment. At the end of 2023, the first 4 simulators were delivered, of which 3 are already in operation covering the needs of both AEGEAN and third party airlines.
• Regarding the Aircraft Maintenance Base, the Group plans to start full operation in the coming weeks.
• We therefore continue with even more solid foundations for the development and specialization of our people, adding over time more added value for our country and our shareholders, always having as an absolute priority the effort for even better service to our passengers.
• And all of the above is of course the result of the continuous effort and passion of our people.”

The economic data

Mr. Gerogiannis concluded by referring to the financial data of the company:

“In summary and as broken down in the annual financial statements, in 2023:

• Turnover increased by 27% compared to 2022, reaching €1.7 billion.
• €246.8 million EBIT profit with an operating margin of 14.6%.
• Our profitability in 2023 amounted to €168.7 million Profit after tax, 52% higher than in 2019
• Cash, cash equivalents and other financial investments amounted to €709.3 million.
• Borrowings (excluding leases) amounted to €220.3 million.
• Shareholders’ equity was €418.8 million, down from €328 million on 12.2019.
• For the 2023 financial year we are resuming the payment of dividends to our shareholders.
• In 2024, the Group’s operational work will be affected by the need for early mandatory checks and repairs on the GTF engines of the Airbus A320 neo family aircraft, so it is estimated that on average around 10 aircraft will not be available for flight in 2024. In the past period we have negotiated with the manufacturer and agreed a compensation package covering a significant part of the related financial impact.
• To address the impact on capacity offered due to the GTF engine issue, we extended our A320 ceo aircraft lease contracts and adjusted our flight work by transferring capacity to Greece from flights operated in 2023 for third parties from bases abroad.
• We continue to take delivery of new aircraft. In 2024 we expect to take delivery of 5 new A320 neo family aircraft and 2 ATR 72-600 aircraft.
• In this environment, alertness, flexibility and adaptability remain priorities over the past 25 years of operations.
• In 2024, the Group plans to expand its activity mainly from its Athens base, increasing the frequency of flights on existing routes to countries such as the UK, Germany, Spain, Portugal, Italy and the Emirates, offering 7% more seats. A corresponding increase in capacity is expected on the entire domestic network and from the Thessaloniki base.
• In total, by 2024, AEGEAN plans to offer 19.5 million seats from its 7 bases, covering 47 countries, with 249 routes.
• Already in the first quarter of the year, AEGEAN carried a total of 2.8 million passengers, 11% more compared to the first quarter of 2023, offering 3.8 million seats (12% more seats compared to the first quarter of 2022).”

In conclusion, he emphatically stressed, “AEGEAN, building on a landmark two-year period in its history, that of 2022-2023, has further laid the foundations, has created the conditions, has drawn up its strategy, to continue to play a leading role and to contribute in accordance with the special importance it attaches to the Greek economy and society, its shareholders and its employees. We remain committed to raising the bar even higher, to continuously improve our services and to innovate in order to meet the evolving needs of our passengers and the competitive conditions of the European market”.