Greek airline company AEGEAN recorded an increase in passenger traffic and turnover in the first half of 2019, boosted by a strong performance in the second quarter of the year, thereby reducing overall losses compared to the first half of 2018.
In its first half 2019 results announced on Monday, the company presented consolidated revenue of 519.4 million euros, 14 percent higher compared to 2018 and net losses narrowing to 13.0 million euros from 13.8 million in 2018, including the effect of implementation of IFRS (International Financial Reporting Standards) 16 for the first time.
According to the company, the adoption of IFRS 16 has a negative impact of 3,8 million on its financial results.
Strong performance in Q2 2019
Moreover, AEGEAN said that its strong performance during the second quarter, drove the improvement on first half results.
The Group offered 12 percent ASK (available seat kilometers) capacity increase in the second quarter aiming to support the extension of the tourism season.
The increased effort resulted in a 10 percent overall traffic increase and a 15 percent increase in international traffic, achieving a rate of growth significantly higher than overall air arrivals to Greece.
Consolidated revenue recorded a 20 percent increase in the second quarter, with a 30 percent increase in net earnings to 22.2 million euros in the second quarter of 2019 from 17 million euros in the respective 2018 period.
Aiming to extend the season
“We have followed our path of consistent growth by investing additional capacity in our international network. Our effort to extend the tourism season by flying more, earlier than usual, in the months of April-May and increase the utilization of our fleet contributed to positive results, despite the overall incoming tourism slowdown,” Dimitris Gerogiannis, CEO of AEGEAN, said.
According to Gerogiannis, gradually extending the tourism season remains critical for both Greek tourism and AEGEAN.
“The evolution of the third quarter, which materially determines our annual result based on our current load factors and revenues remains positive, despite the marginal increase in total air traffic arrivals in our country,” he added.
ΑEGEAN, which in 2018 carried 14 million passengers with Olympic Air, will add new Airbus A320 neo aircraft in its fleet in 2020.