Aegean Airlines reveals fall in profits

3rd Sep 2012
Aegean Airlines reveals fall in profits

Aegean Airlines has confirmed revenue for the first half of 2012 stood at €269.4 million, nine per cent lower than when compared to the same period last year. 

The airline carried 2.7 million passengers in the first half of 2012, registering an eight per cent decline in passenger traffic on 13 per cent less flights compared to last year.

However, this meant achieving an improvement in load factor to 69.5 per cent from 64.6 per cent, albeit on lower fares.

International traffic was two per cent lower, with the company carrying 1.5 million passengers, while domestic traffic fell 14 per cent to 1.2 million passengers.

It is highlighted that the fall in international traffic concerns our main base in Athens as the international traffic from our rest of our bases in Thessaloniki, Heraklion, Rhodes, Corfu and Larnaca was up six per cent in aggregate.

Net result after taxes deteriorated to a loss of €38.5 million compared to losses of €19.8 million in the first half of 2011.

“The political uncertainty deterred potential visitors from coming to Greece and particularly to Athens during the period of two consecutive elections in the country, while domestic demand continued to drop,” the airline said in a statement earlier.

“High oil prices as well as US dollar strength against the euro were additional cost factors weighing on results.”

The company’s cash position reached €181 million at the end of June 2012.

Dimitris Gerogiannis, managing director at Aegean, commented: “The weakness in domestic demand was anticipated but not the fall in tourism, especially to Athens, during the traditionally strong months of May-June which weighed on our performance.

“Tourist arrivals to the rest of the country seem to have normalized after July but Athens weakness is persisted.

“Despite demand conditions we have achieved substantially improved load factors, albeit with lower fares.

“While we have consolidated our overall frequencies, our presence in our main markets of Germany, UK, France, Russia, Israel and Belgium has been strengthened, performing flights from our six bases in Greece.

“In addition, we have initiated flights to Czech Republic, Hungary, Ukraine and Georgia.

“Our efforts on cost reduction are expected to bring more substantial savings during the third and fourth quarter of the year.

“The weakness and uncertainty surrounding the Greek economy requires further significant adjustments, flexibility and increased focus on seasonal incoming leisure demand.”


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