AEGEAN Strong growth and profitability in the nine-month period

Third quarter and nine-month 2023 trading update 

Strong growth and profitability in the nine-month period and third quarter driven by expansion to new destinations, higher international capacity along with targeted and continuous upgrade in fleet, services and product. 

€1,33 bil. of Consolidated Revenue, €367,4 mil. EBITDA and €170,7 mil. Net Profit in 9M-23, 83% higher than 9M-22.

AEGEAN announces a trading update for the nine-month period and the third quarter ending September 30^th, 2023.

Consolidated Revenue grew by 31% vs 9M-22, reaching €1,33 bil. The Group offered 15,7 mil. ASKs and welcomed 12,2 mil. passengers, 30% more than 9M-22, with 7,3 mil. passengers travelling to/from international destinations.

Higher load factor (+5 p.p. vs 9M-22) which stood at 84%, fleet upgrade with neo aircraft and jet fuel hedging, contributed to offsetting the impact of intense competition, inflationary pressures and rising interest rates.

Pre-tax Profit stood at €217,5 mil., 79% higher than 9M-22, while Net Profit increased by 83% to €170,7 mil. from €93,2 mil. in 9M-22.

Cash, cash equivalents and other financial assets reached €755,5 mil.^[1] on 30.09.2023, while Total Equity stood at €525,3 mil. 

Q3-23 was the best quarter in the Company’s history in terms of both revenue and profitability as Group Revenue increased 14% to €653,6 mil. Pre-tax Profit stood at €168,8 mil. and Net Profit reached €133,6 mil. from €120,8 mil. in Q3-22.

Strong passenger demand continued in Q3-23, with AEGEAN delivering a 17% increase in passenger traffic versus Q3-22 as it welcomed 5,5 million passengers, on the back of network expansion. AEGEAN flew its largest ever international network, with strong capacity growth of 15% in available seats compared with Q3-22, further supporting the upgrade of Greece’s tourism product. Load factor strengthened to 85,6% from 83,9% in Q3-22.

Mr. Dimitris Gerogiannis, AEGEAN’s CEO, commented:

“AEGEAN announces another strong set of results with record profitability, delivering one of the best set of 9M results in our sector. Our network expansion, the significant capacity investment with the addition of 3 mil. available seats in 2023 versus last year, along with robust demand for Greece, contributed to AEGEAN’s strong momentum.

At the same time, rising outbound leisure travel supported by local demand, along with robust incoming traffic, further boosted the dynamics in our key hubs in Athens and Thessaloniki, with AEGEAN playing a pivotal role in these developments, given its capacity investment growth and its contribution to the distribution of tourist activity to all of the country’s regions.   

It is worth noting that following the excellent performance in 2022, a second consecutive record year validates the company’s strategy, prospects and relative market position in the post-covid era.  

Recent developments in the Middle East, however, demonstrate that we will continue to operate in a dynamic and challenging environment with low forward visibility. Similarly, on the operational front, it is evident that there will continue to be challenges from limits in soft and hard infrastructure as well as supply chain issues that will significantly impact operations.

We are working diligently within the initial budgeted timeframe to launch Training Center and the 3^rd Party MRO operations. We have taken delivery of 3 flight simulators and other training equipment and we are gradually building up our capacity with qualified personnel, so as to initiate operation in both units in January 2024.”

In accordance with the Company’s November 6^th, 2023 announcement, the Hellenic Republic on November 3rd, 2023, notified the Company of their intention to exercise their rights granted by all the warrants held on the Company’s shares. The Company’s Board of Directors will call an Extraordinary General Meeting of Shareholders so as to vote on the relevant decisions, in terms of potentially exercising the right to repurchase these rights with an objective to respond within the deadlines as provisioned and with a target of completion within the current year.

AEGEAN management will host a conference call to provide a Briefing on Current Developments on Thursday, 23 November 2023 (16:00 Athens time, 14:00 GMT).

Details will be available at: http://en.about.aegeanair.com/investor-relations/announcements/announcements/

Financial Results and Operating Metrics for the Third Quarter & Nine Months 2023

Net Debt Analysis

Note:
¹ 12-month trailing Earnings before interest, tax, depreciation and amortization (EBITDA), Jan. 2022 – Dec. 2022 and Oct. 2022 – Sep. 2023 respectively.

 AEGEAN at a glance

Note:

¹ Excluding other operating income.

 Consolidated Income Statement – Third Quarter and Nine Months 2023

 Balance Sheet Aegean Group – Summary

Notes:
¹ Includes restricted cash of €0,4 mil. on 30/09/2023 and restricted cash of €1,4 mil. on 31/12/2022.

² Includes pledged fixed income securities of €10,4 mil. on 30/09/2023 and €10,4 mil. on 31/12/2022.

 Cash Flow Aegean Group – Summary

Note:

¹ Includes restricted cash and Financial Assets Available for Sale.

 Group operating figures

[1] Includes financial assets of €175,0 mil. and restricted cash of €0,5 mil.