Aegean Airlines reports a first quarter net loss of $11.4 million

Aegean Airlines (Athens) reported a first quarter net loss of $11.4 million. The company issued this statement:

Aegean reports first quarter 2014 results with consolidated revenue of €133.9 million, and after-tax losses during the seasonally weakest quarter of the year of €8.4 million ($11.4 million). On a pro-forma basis, i.e. assuming consolidation of Olympic Air in the respective period last year, losses narrowed compared to after-tax losses of €13.2 million in the first quarter of 2013 while revenue showed a 1% rise.

It is noted that results are not comparable with reported parent results of 2013 given the fact that the latter set of results did not include Olympic Air (Athens) as the acquisition was completed in October 2013.

Αegean Airlines and Olympic Air carried 1.6 million passengers in the first quarter of 2014, 12% more versus the previous year. Domestic network passengers increased by 17% to 930 thousand while international network passengers reached 700,000, 6% higher versus last year. Load factor improved by 1.8 percentage point to 73%.

Operating cash flow improved significantly resulting to an increase in the company’s cash and cash equivalents to €274 million from €239 million in December 2013.

Mr. Dimitris Gerogiannis, Managing Director, commented:

“Following the acquisition of Olympic Air, the initial benefits from network synergies are already evident and along with our new pricing policy are translated to improved load factors and increased connecting traffic during this seasonally weakest quarter for the year.

Pre-bookings for the summer season as well as our traffic results for April 2014 confirm the positive trend. Our investment in expanding our network and capacity with the addition of 5 airbus aircraft and 17 new international destinations as of May/June, takes place within a rising demand environment. On the other hand, available capacity offered is substantially increased by the majority of operators active to the Greek market.

As far as Olympic Air integration is concerned, implementation is progressing in line with targets, with the full synergy and scale economies benefits expected to mature with the next 12 months. At the same time, innovation and services that add value to our customers remain a top priority.”

Copyright Photo: Antony J. Best/AirlinersGallery.com. Airbus A320-232 SX-DVV (msn 3773) of Aegean Airlines taxies at London (Heathrow) while promoting the new Acropolis museum.

Aegean Airlines: AG Slide Show

Olympic Air (3rd): AG Slide Show