AEGEAN announces results for the full year 2010 which are in line with estimates announced in early February. More specifically, revenue declined 5% to €591m. Net result after taxes posted losses of €23.3m, burdened by €8m related to the extraordinary social contribution charge.
In the international network, with the addition of new routes, the company carried 3.06 million passengers, achieving 9% y-o-y growth. On the other hand, due to weak demand conditions, passengers carried in the domestic network declined by 16% to 3.17 million passengers with a significant reduction in average fare.
Weak domestic demand conditions, the subsequent significant reduction in average fare and the rise in the price of fuel were the main contributors to the loss.
During the last year the Company intensified its efforts to improve productivity, reduce costs, and restructure its network as well as introduce new systems. Through these initiatives, it has succeeded to reduce the consequences of the adverse economic environment as well as to materially protect its cash reserves which settled at €190m despite the €22.2m income tax outflow (FY09 income tax, income tax “advance” for FY10, extraordinary social contribution tax for 2009).
For 2011, efforts for further productivity improvements are continuing. In addition, the Company aims to operate for the first time in its 12-year history a one aircraft type fleet of Airbus A320 family, thus achieving further operating cost efficiencies.
Mr. Dimitris Gerogiannis, Managing Director, commented:
“The challenges of the acute recession of the Greek economy and the significant rise in the price of fuel, will continue to affect the company’s results during the current year. Nevertheless, in line with our long term strategy, we continue to invest in our network development in order to support and also benefit from the expected rebound of tourist traffic flows to our country. Needless to say, our efforts to further improve productivity and competitiveness as well as to develop new programmes and services will be redoubled.”
During the IATA 2011 Summer period, the Company will
-introduce new routes from Athens to Moscow and Bologna,-increase its frequencies from Athens to London/Heathrow, Rome, Paris/CDG, Brussels, Barcelona and Madrid.
– strengthen its base at Thessaloniki with new routes to Moscow, and Paris reaching 18 domestic and international destinations served from Thessaloniki
– operate out of Larnaca/Cyprus with direct flights to London/Heathrow as well as 6 Greek destinations
With these additions, AEGEAN will operate 35 international and 24 domestic routes, without taking into account a significant number of international destinations served by 6 Aircraft on charter operations.
