Aegean Airlines CEO reports strong 1H2024 results despite competitive pressures and rising costs

Aegean Airlines reported (11-Sep-2024) revenue increased 10% year-on-year and EBITDA increased 6% in 1H2024, while profit before taxes in amounted to EUR31.6 million, compared with EUR48.7 million in 1H2023. Due to "strong positive cash flows from operating profitability and the pre-sales for the summer season", cash and cash equivalents amounted to EUR814.4 million on 30-Jun-2024, up from EUR706.3 million on 31-Dec-2023. This follows the buyback of the warrants and the payment of their market value totalling EUR85.4 million on 02-Jan-2024 to the Greek State, as well as the resumption after four years of dividend payment to shareholders of EUR67.6 million on 27-May-2024. The company noted mandatory inspections and repairs on GTF engines for the A320neo Family fleet, which began in Oct-2023 and required the grounding of a large part of the fleet, significantly increased fuel, maintenance and aircraft lease costs. Aegean noted that while compensation from the manufacturer covers a significant portion of the burden, it does not fully offset the cost impact or loss of additional capacity. Additionally, the phasing out of free CO2 allowances is further increasing operational costs. Aegean Airlines CEO Dimitris Gerogiannis commented: "The result in 1H2024 remains particularly strong, despite the increase in the capacity offered by the competition but also the significant operational and regulatory requirements that burden our cost base". Mr Gerogiannis added: "In fact, given the seasonality of the market, it is important to highlight that following our coordinated effort to extend the tourism season, we have managed to leave behind the years where, until 2019, Aegean's first half period results were loss making". [more - original PR]