Aegean Airlines has reported improved results for the first half of 2014, resulting from the benefits of its network expansion and from cost synergies with Olympic Air.
Consolidated revenue increased by eight per cent to €388.6 millio, compared to the combined revenue of both companies in 2013. Consolidated pre-tax earnings reached €22 million from €7.2 million and after-tax earnings rose to €16 million from €6.9 million in 2013.
It should be noted that due to seasonality the first half is traditionally said to be the weakest semester in performance.
Aegean Airlines and Olympic Air carried 4.3 million passengers in the first half of 2014, 16 per cent more than the previous year, achieving further improvement on load factor to 76 per cent from 74 per cent, despite the high number of new destinations launched during the period.
In June 2014, the company reached a historic milestone by exceeding one million monthly passengers for the first time. Traffic in the domestic network surged by 19 per cent, driven mainly by lower fares which boosted demand for main markets as well smaller island destinations. International traffic out of the eight aircraft bases rose by 13 per cent, with Athens registering a higher growth rate of 17 per cent, as the market recovered for the first time since 2008.
Managing director, Aegean Airlines, Dimitris Gerogiannis commented: "Olympic Air synergies are gradually maturing bringing unit cost improvements and increased flows from connectivity. Our investment in incoming leisure and tourism over the last five years now brings tangible results for Aegean. This is so, despite the significant rise in competitive capacity to our market as well as new source market related challenges faced in Russia and Ukraine.
He added: "We are benefiting from scale economies and network development and we will continue to gradually but consistently pursue this strategy while making new investments in quality and competitiveness as most recently with our decision to take delivery of seven brand new Airbus A320 aircraft in 2015/2016."