Revenue grew by 13% to €668m, driven by international network expansion and international traffic growth that reached 15% through the operation of 102 routes (schedule & charter), which compensated – in terms of revenue – the weak demand in the domestic market. Net result after taxes came to a loss of €27.2m compared to losses of €23.3m in 2010. It is noted that FY2010 result was burdened by one-off social contribution tax charges of €8m.
Rising fuel costs and the significant weakness in demand from Greek consumers for both domestic and international travel, throughout the year and especially during the last quarter of the year, were the main factors behind the deterioration of operating result.
More specifically, fuel costs rose by €62m to €184m, with the biggest part of the rise – of €45m – stemming from the 39% rise in the price of oil.
Despite the loss making result, the Company achieved an improvement in operating cashflow, allowing for the investment in slots in London Heathrow and Paris CDG airports, whilst also maintaining a healthy capital structure with cash and cash equivalents at €166.8m.
Mr. Dimitris Gerogiannis, Managing Director, commented:
« During 2011, cost containment efforts through the fleet homogeneity and productivity gains, were not enough to offset the consequences of the crisis and the effect of oil prices that rose by 39%. In addition, international expansion yielded commercial benefits but had a short-term burden on financial results, as is the case for any new investment. The environment continues to be weak with a further drop in demand in the first quarter of 2012. Within this deteriorating environment, our efforts concentrate on cost cutting initiatives, the improvement of our competitiveness through the offering of attractive fares and the continuous adjustment of our network depending on market conditions, our strategy and any opportunities that arise. »
