powergean

Yes, i see, no idea.

DELLAS

ANNOUNCEMENT

Credit Rating Review

Athens, August 04th ,2022

Aegean Airlines S.A. (“the Company”) hereby informs investors, in accordance with the provisions of its Common Bond Loan issued on 28.02.2019, that credit rating agency ICAP CRIF S.A., maintained an A rating to the Company and removed the outlook under surveillance.

https://en.aegeanair.com/-/media/abo...04-icap_en.pdf

powergean

Super!

DELLAS

Press Release

Second Quarter & First Half 2022 Financial Results

Profitable second quarter following recovery in passenger traffic. Strong trend in demand continues in the third quarter.

Athens, September 15th 2022

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 €602,11 mil.

https://en.aegeanair.com/-/media/abo...h122-ir_en.pdf

DELLAS

https://en.aegeanair.com/-/media/abo...9m22-ir_en.pdf

Xandrios

Interesting note (to me) about USD hedging. Would this be about purchasing fuel in usd (In Europe?) or does that not make sense? Sounds like a dangerous game to be gambling with currency value fluctuations at this time..

KLouis

Well, the report states "Aegean's effective jet fuel and USD hedging also had significant impact in mitigating the effect of their increasing cost". The use of the past sentence indicates that they gambled and won; whether they're still gambling is a different story, and I fully agree with your opinion if they do.

DELLAS

PRESS RELEASE

Fourth Quarter and Full-year 2022 Results
Full recovery of Financial Results with demand resurgence and maturing of new fleet investment benefits, after two years of significant losses due to the pandemic
€1,34 bil. of Consolidated Revenues, 12,5 mil. passengers and Net Income of €106,8 mil., 36% higher than pre-pandemic 2019.
Full Year 2022 results
• €1,34 bil. Consolidated Revenues an increase of 98% vs 2021 and 2% higher than 2019.
• 12,5 mil. passengers, 73% increase compared with 2021.
• EBITDA of €274,9 mil.
• €106,8 mil. Net Income, from Headline losses of €57,6 mil. in 2021, 36% higher than Net Income at €78,5
mil. in 2019.
Athens, March 15th, 2023
AEGEAN announces its operating and financial results for fiscal year 2022, delivering a strong performance after two years of significant losses due to the pandemic.
Consolidated revenue in 2022 reached €1,34 bil., 98% higher than 2021 and 2% more than 2019. In 2022, the Group offered 15,8 mil. seats and carried 12,5 mil. passengers, 73% more than 2021, out of which 7,3 mil. passengers traveled to/from international destinations. Load factor reached 79,8% significantly higher than 2021 (+ 14.3pp), remaining though below the pre-pandemic levels due to the impact of Q1 and Q2 of the year. The contribution of the international network to Group’s revenues reached almost 80% in 2022.
The effects of resurgence of robust demand for travel to/from Greece, the significant increase of revenue per available seat, the evolution of our fleet upgrade with a higher number of deliveries of new technology aircraft in 2022, the benefit from partial fuel hedging all came together to offset the impact of high jet fuel costs and USD appreciation.
Total FY 2022 capacity offered in ASKs reached 90% of 2019, following a gradual increase as the year progressed, with Q4 reaching 99% of the capacity and 115% of consolidated revenues of Q4 2019 at €317,4 mil. revenues, becoming the first profitable Q4 in company history with a €13,6 mil. Q4-22 Net income.

https://en.aegeanair.com/-/media/abo...fy-22-_eng.pdf

HEhatesusall

Oh wow, 2% increase in revenue vs 2019 but 36% higher net income vs 2019?
Load factor at 80% almost, lower than pre-pandemic
A3 carrier 12.5M passengers vs 15mil in 2019 .
That should put to bed all the arguments that the price hikes are justified due to reduced/eliminated subsidies in fuel etc...

The argument to be made here is that because a single company wants to maximize its profits(which is what companies are made for) the rest of the economy suffers quite a bit by paying higher fees and having fewer total visitors per year.

BA6948

but Greece is having more visitors than before. And the competition is fierce in Greece. 🤷‍♂️

KLouis

This is called γκρινιάζω in Greek, and Aristotelian logic will simply not satisfy a γκρινιάρης (no longer taught in Greek Highschools).

johnirvine

It is important when drawing conclusions about corporate performance to look in detail at the underlying figures. Aegean's higher net income in 2022 arises from the fact that they were able to benefit from considerable accumulated pandemic-period losses in their Financial Statements.

irishguy28

Yes indeed, nothing brings in the cash in 2022 faster than recording considerable losses in the immediately preceding years.

Perhaps Aegean should have focused losing even more heavily in 2020 and 2021 as it seems to have proved so beneficial to their "Net Income" in 2022!

HEhatesusall

this is not old-fashioned nagging.
This is me saying that increased airfare prices drive away tourists , a main source of income in this country. If a tourist says "due to XYZ price hikes I'll spend my vacations in Turkey/Spain/Italy" the whole economy literally loses thousands of euros because aegean wanted to increase their margins. Aegean will do what's best for the company, no doubt, but in this occasion the company's financial well-being directly contradicts the country's goals.
If the country as a whole wants to maximize tourist revenue , then it needs to control the pricing somehow so that a return ticket from our major european markets doesn't cost 5k for a family of 4.

It's very hard to control pricing for a publicly traded company for sure, but governments always have some leeway if they want.

This can partially explain the discrepancy between net income and revenue, although I doubt it will fully cover the gap.
However, load factors went down vs 2019, and passenger volume was down by 17% and still achieved the same revenue.

Looking at the numbers in more detail I still think my observation is correct.

RASK(Revenue per Available seat Kilometer), aka the revenue the company commands per seat per kilometer rose from 7.1 cents in 2019 to 8.3 cents in 2022 , an increase of 17%
In "normal person speak" that means that the "average" ticket increased by 17% from 2019 to 2022. And as A3 also mentioned, Q1 2022 was still in kind-of post-covid recovery mode so the numbers werent as great as they could have been...
All the above is (probably) why this Q4 was the first profitable Q4 of A3 in its history

edit:a typo

DELLAS

AEGEAN’s passenger traffic grew by 72% in 2023 vs 2022 with 2.6 million passengers in Q1 2023 and for the first time recorded 5% higher passenger traffic compared to pre-pandemic 2019

https://en.aegeanair.com/-/media/abo...or-q1-2023.pdf