johnirvine

The cash burn is lower than anticipated precisely because Aegean continues to brazenly break the law and refuses to return refunds for cancelled tickets. Year to date, the share price of Aegean has tanked by 52.86%. The decline is probably set to continue until the airline receives a state bailout.

powergean

,,until the airline receives a state bailout.“

The voucher law is alredy a state bailout, Aegean dosent want direckt money from government like Lufthansa did, for 25% of the company. They will survive, without the government, maybe with bank loan.

johnirvine

The voucher law is not a state bailout; it is an illegal wheeze by the Greek government which breaks EU law. In any event, Greek so-called 'law' does not apply in other EU countries where a high proportion of A3 tickets were sold. I would be interested to hear whether anyone has actually managed to make a successful credit card 'chargeback' on A3.

powergean

Thes will be a problem between EU and greek government, not between eu and Aegean. They did it very smart. We all know , that if eu will start ( i dont think so), anything, will take years, for nothing. The other thing is, that all airlines doing almost the same, not giving money back during the covid period.Thes is the really bailout from the government.

DELLAS

PRESS RELEASE

Second Quarter & First Half 2020 Financial Results

Pandemic creates unprecedented challenges Continuous effort for necessary adjustments
Kifissia, 28 September 2020

AEGEAN announces its second quarter 2020 results. The outbreak of COVID-19 has brought unprecedented challenges for the airline sector, especially in the second quarter for all Europe. Travel restrictions and local shutdowns imposed by governments during the period caused the cessation of effectively all of the Company’s flight activity.
The total number of flights operated fell by 82% in the quarter (with a reduction of 95% and 92% for the months of April and May respectively), while passenger traffic fell 92%.
Consolidated revenue for the second quarter stood at just €40.4m, 88% down compared to the second quarter of 2019, i.e. a decline in revenue of €307m. Pre-tax losses (excluding extraordinary) stood at €58.7m against pretax profit of €31.5m in the respective 2019 period.
As a result, overall first half 2020 consolidated revenue fell by 64% to €187.4m while underlying pre-tax losses stood at €132.3m. The results were burdened by extraordinary losses of €68.5m from ineffective hedging, mainly due to the large portion of fuel hedging contracts for the duration of 2020 being rendered ineffective by the significant reduction in flight activity. Net losses after tax stood at €158.8m in the first half compared to losses of €13m in the respective period last year.
Mr. Dimitris Gerogiannis, CEO of AEGEAN, commented:
“The last seven months have been a constant strife for flexibility, resilience and efforts to develop our viability forward in what is certainly the most difficult period the global airline industry has ever faced.
Due to travel restrictions the second quarter of the year was a period with essentially zero activity. Our efforts were primarily directed towards cost management as well as establishing and implementing strict protocols for the safety of our passengers and crews.
By end of June with the passing of the first wave of the pandemic and the partial lifting of travel restrictions, we made a significant effort to rebuild our activity, eventually covering 84 destinations from Athens and 52 from our regional bases, supporting Greek tourism. However, several markets, outside and within the EU remained inaccessible while demand for travel even from accessible countries was weak, despite Greece’s strong relative attractiveness and performance.

https://en.aegeanair.com/-/media/abo...28_1h20_ir.pdf

Carpacchio

Wow - those are bleak numbers. Especially, since there is no hope of improvement for the next 6 months, given that summer and early fall season is over.
Still flying with load factor below 70%.
Short term liabilities above short term assets.
No wonder there is no business class food.

headingwest

Did it ever occur to them that the reason nobody is booking flights is that nobody trusts them anymore. If you didn't get your money back (and I don't mean vouchers) when they cancelled your flight, why would someone want to book with them in the future?

Reap what you sow Aegean!

DELLAS

Although the figure for the above is in reality not the issue as to why the stats are what they are. They are not the only airline who has been delaying or refusing to give refunds either. Its about to get worse this Winter will be terrible. Some good very forward thinking talent has sadly been lost at the company in the last 6 weeks. Brace yourself for the next results and maybe a good time to burn your miles before they get further devalued. Hoping the the best but planning for the worst.

headingwest

As they are quite clearly in survival mode, cutting back on cost such as catering, do you think it's possible they will consider leaving Star Alliance? The annual charges must be quite high.

PointWeasel

Seriously?

A3 results are just as ugly as the other Star Alliance members, so not quite sure about your logic.

I have flown with A3 five times (in both C/Y) over the past few weeks and have another couple of flights next week as well. A couple of those flights were quite full, and a couple half full. This is pretty much in line with my experiences on TP, LO, OU as well over the past eight weeks. Of course this does not speak to yield at all.

ATH is much busier nowadays than it was in late July, but its the winter months that make me worry about more red ink to come.

headingwest

Well I am not saying they will, but if they are trying to strip out costs, why wouldn't they consider leaving?

NextWhiteDeath

Those kinds of steps are a last option. By leaving *A they lose all the benefits that come with membership. The biggest of which is earning and redeeming on *A partners. That would tank the value of the program against which it could borrow like the big US3 have done. It also makes it harder to bounce back when demand returns.

flyertalker0039345

My favorite niche blog had this added to their article about Aegean's network in the ex-YU.

In a recent report by HSBC entitled “European Airlines - state aid and governance”, the bank found that Aegean’s balance sheet remains strong, even without state aid. In particular, HSBC analysts pointed out that, "Among the airlines we evaluated, Aegean is the only one to have not received state aid. Like all carriers, Aegean has benefited from the labour measures taken by the Greek government for companies affected by the pandemic, having suspended employee contracts. However, the state aid received was limited". It added, “Although Aegean Airlines did not receive any significant support or funding from the Greek government, it entered the pandemic with very good finances. Available cash reserves during the second quarter stood at 465 million euros and unused credit lines amounted to 120 million euros. The company was burning forty million euros in cash every month during the lockdown, which means that it is capable of surviving the crisis”.

PointWeasel

Unless an airlines member folds, the process the leave an alliance is far from easy.

jerry_greece

Page 44 mentions the "value" of the vouchers withheld., described as "short-term liabilities". That amount jumped from 18 mil. to 81 mil.

"Other short-term liabilities increase mainly relates to the credit voucher service rendered by the Group to passengers for their non-used tickets, when a flight was cancelled due to COVID 19 imposed measures."