Aegean Airlines reports 9-month results with key highlights being as follows:
Turnover rose 20% to 370.5m euros from 307.6m euros
Pre-tax earnings increased 36% to 41.7m euros
Net profit for the period increased 45% to 33.4m euros from 23m euros
EBIT increased 24% to 42.8m euros
Total passengers welcomed onboard rose by 19% to 4.1 million
Average passengers per flight improved to 96 from 94.
Dimitris Gerogiannis, Managing Director, commented:
"I am pleased to report a positive set of 9-month results, showing net profits of 33.4m euros, 45% higher compared to the respective 2006 period. These improved results were driven by a consistent strong momentum in passenger traffic growth combined with successful cost efficiency measures. I am also pleased to report progress on areas that have been set as key priorities on our strategic development plan and these include growing our international network, further strengthening of our relationship with Lufthansa, reinforcing our domestic position and last but not least achieve progress on the cost of distribution front.
Looking forward into 2008, where the major part of our fleet modernization would take place, we are focusing on the improved customer services as well as on further cost efficiencies that the renewal will bring, in an overall challenging cost environment. The oil price, which has repeatedly hit and exceeded record high levels, has become the most immediate challenge for the near future. While partially mitigated by the weak US dollar and the application of fuel surcharges, we believe its effect will be felt in 2008. To this end, among our goals is to accelerate the re-fleeting process - to the degree possible - so as to more rapidly improve the fuel efficiency of our fleet as well as enhance our revenue potential as a result of our improved services."
9-month Results
Total revenue rose by 20% to 370.5m euros from 307.6m euros attributed to strong demand trend and network expansion. Aegean Airlines achieved excellent profitability during the 9 months of 2007. Pre-tax profits showed an improvement of 36% to 41.7m euros from 30.7m euros. Net earnings after tax for the 9-month period jumped 45% to ?33.4m with a respective margin of 9%. Net earnings growth for continuing operations was even higher, standing at 59%. Important factors that contributed to the improved profitability were scale economies and distribution efficiencies due to higher web sales.
As far as the traffic development is concerned, Aegean Airlines welcomed more than 4 million passengers on board during the 9-month period, achieving a 19% y-o-y growth. Domestic demand remained strong with passenger traffic up 12% to 2.6 million passengers, confirming the success of Aegean's strategy to further strengthen its presence as well as stimulate demand in the domestic market. Growth in international routes was higher, reflecting efforts for further international network expansion, with Aegean Airlines transferring 1.5 million passengers, 34% more compared to last year.
Aegean Airlines network covers 7 countries on 30 year-round routes. In late 2006 Aegean Airlines opened Athens-Bucharest and Athens-Cairo routes while in early 2007, the company introduced new direct services from Athens to Frankfurt and Munich, code-shared with Lufthansa, whilst also doubling frequencies to Milan. As of mid September, the company is also adding frequencies to both Athens-Sofia and Athens-Bucharest, reaching 12 weekly frequencies each. The company's objective is to gradually increase its coverage and flight density to European destinations so that business as well as leisure passengers are offered an attractive competitive product. The company's international network will be enhanced with new destinations in 2008 which are due to be announced at the end of November 2007.
Financial statements for the 9-month period to September 2007 will be posted on ATHEX website and on our website: www.aegeanair.com, on November 20, 2007.