Aegean back in the black in 2013 with €70m profit

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Aegean transformed a pre-tax loss of €12.6 million ($17.3 million) in 2012 into a €70.9 million profit in 2013, but its financial performance was dragged down by the acquisition of Greek rival Olympic Air late last year.

Aegean's revenues jumped to €682.6 million in 2013 compared to €562.8 million in 2012 while passenger traffic increased 12% to 6.8 million passengers.

International volumes grew 14% to 4 million passengers which the Athens-based carrier put down to “the maturing of routes entered in previous years and also by favourable demand conditions for upcoming leisure traffic”.

Athens and Aegean’s six regional Greek bases all registered positive passenger growth, it says.

Load factors increased from 74% to 79% and were up 10 percentage points on two years which the company said was the “main contributor” to its increased profitability.

Aegean was cleared by European regulators to acquire Olympic Air in October 2013. It generated €167.4 million in revenues in 2013 and carried 2 million passengers. But it incurred a pre-tax loss of €12.7 million which dragged down Aegean’s result to €70.9 million on a pro-forma basis, which would otherwise have reached €83.6 million.

Aegean managing director Dimitris Gerogiannis says the combined company is already experiencing the benefits of a number of synergies but says consolidation would need to continue in 2014 as market conditions remained challenging.

“Local consumer demand continues to be weak, however apparently stabilising at lower levels. Following a particularly strong 2013, incoming leisure demand outlook for 2014 continues to develop positively for Greece while competitive capacity to the country is also substantially increased," he says. "Our strategy of expanding both from Athens as well as our regional airport bases will be continued for 2014."