Aegean Airlines: RASK growth drives return to profit in 1H2013, with Olympic Air decision looming

Greece's largest airline Aegean Airlines reported a first half profit in 1H2013 for the first time since 1H2009, putting it on track to post its first full year profit since 2009. Aegean has laid down a good track record of cost control over a number of years, but unit revenue weakness has undermined this and led to annual losses.

The return to profit for the half year was due to strong growth in revenues, led by international routes and driven by a significant rise in RASK. Tight capacity management contributed to this performance and Aegean will be hoping that strong unit revenues can be sustained into the second half in spite of growing LCC competition.

Meanwhile, the European Commission is expected to rule on Aegean's proposed acquisition of Olympic Air in Oct-2013 and this will be the key strategic milestone in 2H2013.