Aegean Airlines’ annus mirabilis, but can it maintain the momentum in 2014?

Aegean Airlines had a good 2013. Not only did it return to profit for the first time since 2009, but it recorded its best result since its 2007 listing on the Athens Stock Exchange. All the key indicators improved: double digit passenger growth, load factor gains, a sharp increase in revenue per ASK and a fall in costs per ASK. Moreover, on the strategic front, it finally completed the acquisition of Greek rival Olympic Air after first attempting this in 2011.

The challenge for Aegean will be to maintain the momentum in 2014.

The integration of the loss-making Olympic, while giving the potential for synergies, will inevitably absorb significant management attention. Meanwhile, keeping hold of RASK gains in the face of growing competition from LCC competitors (Ryanair will open bases in Athens and Thessaloniki in Apr-2014) and continuing to reduce CASK will also be crucial to showing that the 2013 result was not just a flash in the pan.