Aegean to announce 2010 net loss of over €22 million


Aegean Airlines, whose proposed merger with competitor Olympic Air was blocked by the European Commission last month (ATW Daily News, Jan. 27), said it expects to report a net loss of €22-€24 million ($30-$33 million) for 2010 and warned that a loss for the current year is “very likely” owing to higher fuel prices and continued weak demand in the domestic market. It estimated 2010 revenue at about €590 million.

“Despite the difficult economic environment, the company will continue during 2011 to develop its international presence, with prudent gradual steps, in line with its strategic direction of the last five years,” MD Dimitris Gerogiannis said. “At the same time, we will continue to invest in further improving our productivity and unit cost efficiency toward international best in class levels.”

Aegean transported 6.2 million passengers last year, 5% fewer than in 2009. International boardings increased 9% to 3.06 million as it added new routes to its network. Passengers carried in the domestic network, however, declined 16% to 3.17 million with a significant reduction in average fare due to weak demand. To address the effects of the Greek economic crisis, it reduced fleet and capacity significantly, mainly in the domestic network, through the phasing out of four Boeing 737s, two ATR72-500s and two Avro RJ100s.

Leave a Reply

You must be logged in to post a comment.