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Aegean Airlines narrows 1Q loss after Olympic Air consolidation

Source: ATW

Aegean Airlines reported a first-quarter after-tax loss of €8.4 million ($11.5 million), narrowing the consolidated €13.2 million loss reported for the same period last year.

The airline said the financial results were not directly comparable year-over-year because of the acquisition of Olympic Air, which was completed in October 2013. As a result, the airline consolidated the first-quarter 2013 results on a pro-forma basis, assuming inclusion of Olympic Air in the respective period last year.

The actual published Aegean first-quarter 2013 results, excluding Olympic Air, reported an after-tax loss of €1.2 million on the back of a revenue total of €98.9 million.

The consolidated figures reveal a 1% increase in revenue for first-quarter 2014 to €133.9 million from €132.2 million during the year-ago period.

Between them, Aegean and Olympic Air carried 1.6 million passengers in the first quarter, up 12% compared to the same period the previous year. Domestic passenger numbers increased 17% to 930,000, while international passengers grew 6% to 700,000. Load factor improved 1.8 points to 73%.

Aegean MD Dimitris Gerogiannis said: “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.”

He said pre-bookings for the summer season and April traffic results confirmed the positive demand trend, but warned that competition had “substantially increased” available capacity in 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,” Gerogiannis said.

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