Aegean says oil to hurt 2008 results – paper
ATHENS, Oct 5 (Reuters) – High fuel prices and a world credit crisis will affect Greek carrier Aegean Airlines’s (AGNr.AT: Quote, Profile, Research, Stock Buzz) full-year results, its vice-president told a newspaper on Sunday.
“The rise in oil prices will affect our profitability for the full year but will not affect our cash flows, so that we take emergency measures,” Aegean Airlines vice-president Eftichios Vassilakis told Sunday’s To Vima newspaper.
The carrier competes with state-owned Olympic Airlines [OLY.UL], which is under privatisation. It posted a 13 percent drop in first-half net profit to 5.5 million euros, hurt by high fuel costs.
Vassilakis said a fuel hedging policy and strong cash reserves will help the carrier draft a budget with no surprises.
“The firm has cash reserves of 180 million euros and is in an advantageous position, since it is currently enjoying high yields, as the capital is invested in repos,” Vassilakis said.
In July, the carrier raised ticket surcharges for both domestic and international flights on increasing fuel costs, which account for about 35 percent of total company costs.
(Reporting by Angeliki Koutantou; Editing by Erica Billingham)