Aegean Airlines made a net loss of €23.3 million in financial 2010 as the carrier was hit by the Greek debt crisis.
The largest carrier in the country also saw revenue fall five per cent to €591 million.
“Weak domestic demand conditions, the subsequent significant reduction in average fare and the rise in the price of fuel were the main contributors to the loss,” the airline explained in a statement to markets.
With Greece still facing economic turmoil moving into 2011, Aegean managing director Dimitris Gerogiannis argued things would continue to be difficult.
This despite an expected rebound in tourist arrivals to the Mediterranean destination.
“The challenges of the acute recession of the Greek economy and the significant rise in the price of fuel, will continue to affect the company’s results during the current year” he said.
Analysts are predicting the Greek economy will contract three per cent in 2011 after a 4.5 per cent drop last year.
Aegean saw international traffic rise nine per cent in 2010 while the number of passengers on its domestic network fell 16 per cent.
New routes – including to Bogotá and Moscow – will be launched this year.
Aegean and biggest rival Olympic confirmed earlier this month they would appeal against a European Union ruling that blocked their plan to merge.