AEGEAN Announces Second Quarter Pre-Tax Loss of €58.7 Million on 88% Revenue Decline to €40.4 M
AEGEAN reported on Monday their second quarter and first half financial results with a quarterly pre-tax loss (excluding extraordinary items) of €58.7 million. The carrier’s second quarter revenue declined year-over-year by 88 percent to €40.4 million.
On Monday (September 28, 2020) AEGEAN reported their second quarter and first half financial results. Second quarter revenue declined 88 percent versus the same period last year to €40.4 million and the carrier reported a pre-tax loss (excluding extraordinary items) of €58.7 million compared to a pre-tax profit of €3.15 million during Q2 2019. During the quarter, the airline’s number of flights operated fell by 82%, while passenger traffic declined 92%. Consolidated revenue for the first half (H1) fell to €187.4 million and the carrier’s pre-tax loss was reported as €132.3 million including an extraordinary charge of €68.5 million related to ineffective fuel hedging. AEGEAN’s H1 net loss after taxes was €158.8 million, compared to a net loss of €13 million during the first half of 2019. In Monday’s announcement, AEGEAN’s CEO, Mr. Dimitris Gerogiannis, said,
“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. “Since early August with the resurgence of the pandemic a new round of dissimilar, uncoordinated measures across the region, once again limited access and demand for travel. As a result, we operated less than 50% of our scheduled activity in August with particularly low load factors for the period. Looking forward, our industry and our Company are faced with the most challenging and least predictable winter ever. We will continue our daily effort to adjust to the new travel requirements of our passengers, to further extend our “crisis endurance runway” and to develop effective and flexible alternative scenarios for our product and network for 2021.
“We thank all of our staff for their efforts and our passengers for their daily trust to fly with us during these difficult circumstances. Last but not least, as all aviation industry bodies emphatically communicate, it is crucial that nations around the world establish common protocols for pre-flight covid testing that will allow all markets to become accessible, replacing quarantines and market closures. This is certainly a requirement for non- EU to EU travel but could also be the case for intra EU international travel should this be deemed necessary by the medical experts.”
During the third quarter, AEGEAN adjusted their planned delivery schedule of new Airbus A320/A321 fleet while maintaining a commitment for a total of 46 aircraft. The carrier deferred aircraft deliveries from 2020/2021 to after 2023 and has already taken delivery of five new A320/321neos. AEGEAN expects to take delivery of an additional four A321neos through April 2021. In 2019, AEGEAN and its subsidiary Olympic Air carried 15 million passengers. The airline has been honored 10 out of the last 11 years by Skytrax as the ‘Best European Regional Airline.”