- €1.69 billion Working Cycle boosted by 27% by 2022.
- €400.4m EBITDA, 46% higher than 2022.
- €246.8 million EBIT profit with 14.6% operating margin.
- €168.7 million Profit after tax, 58% higher than 2022.
AEGEAN closed 2023 with strong growth and profitability momentum for AEGEAN, which recently announced its financial and operating results for the year 2023.
Consolidated turnover for the full year amounted to €1.69 billion, up 27% compared to 2022. In 2023, the Group offered 18.9 million seats, 3 million more than in 2022, and carried 15.7 million passengers in total, 3.2 million more than in 2022, and a total of 9.5 million passengers to/from international destinations. The load factor was 83.4%, an improvement of 3.6 p.p.
The addition of 30 new destinations to the network, reaching a total of 180 destinations and the significant increase in the capacity on offer were particularly effective in a booming environment of incoming demand and increasing dynamics of Greeks for travel abroad. The offer of 11.2 million seats on the international network in 49 countries and the increased interconnectivity between destinations contributed to further improving the competitiveness of the product, to strengthening the operation of the main hub of Athens and Thessaloniki and consequently to a strong increase in revenues.
Despite inflationary cost pressures, AEGEAN maintained a competitive cost structure. As a result, it recorded an EBITDA profit of €400.4 million, 46% higher than the very strong 2022, which contributes to the Group’s strength and confirms the full recovery from the two-year pandemic period.
Operating Earnings Before Interest and Taxes (EBIT) stood at €246.8 million, up 68% on 2022, with a margin of 14.6%, while Earnings After Taxes stood at €168.7 million, 58% higher than in 2022.
The strong profitability for 2023 resulted in the generation of high operating cash flows of €334.8 million (after aircraft lease payments), thus ensuring the uninterrupted financing of the 9 new A320/321 neo aircraft delivered in 2023 and the rapid progress of the investment in the Training Centre and the Aircraft Maintenance Base.
Cash, cash equivalents and other financial investments amounted to €709.3 million[1] at 31.12.2023, while Equity amounted to €418.8 million.
The company’s total borrowings, excluding leases, amounted to €220.3 million, with a significant reduction from 2022, following the repayment of loans taken out during the pandemic.
Mr. Dimitris Gerogiannis, CEO, said: “AEGEAN achieved dynamic growth in its flight operations, passenger traffic and profitability, recording one of the best results in the industry, in an environment of strong demand and intense competition, high interest rates and increasing cost elements and uncertainties. We are extremely pleased with the result which confirms the Company’s consistent growth strategy over time. In 2023, the Group made progress in all strategic axes as we added 30 new destinations, increased the order of new Airbus aircraft by 4, which totalled 50, while in December 2023 the Training Centre with the aircraft flight simulators was already configured and put into operation and the new Aircraft Maintenance Base will be operational in the first quarter of 2024.
We are therefore starting in 2024, 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 of course the effort for even better service to our passengers as an absolute priority. The fact is that the excellent result of 2023 is a difficult basis for comparison for 2024, especially when we are called upon to manage the challenges in the supply chain. But the demand response to the new capacity added is looking encouraging.”
It is noted (as already announced) that the General Meeting on 14.12.2023 decided to repurchase the warrants from the Greek State. Given that the decision to exercise the warrants took place in fiscal year 2023, the total amount of the market value of the warrants reduced as a provision the Equity as at 31/12/2023 by €85.4 million with a corresponding increase in Other current liabilities. Thereafter the cash outflow took place on 2/1/2024 reducing cash and cash equivalents correspondingly on that date.
The Board of Directors will propose for approval by the next General Meeting the distribution of a dividend of €0.75 per share.
In 2024, the Group plans to expand its operations mainly from its Athens base, increasing the frequency of flights on existing routes to countries such as the UK, Germany, Spain, Portugal, Italy, Portugal and the United Arab Emirates, offering 7% more seats. A corresponding increase in capacity is expected from the Thessaloniki base and on the entire domestic network. In total, for 2024 AEGEAN plans to offer 19.5 million seats from its 7 bases, covering 47 countries with 249 routes.
