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Revenue: EUR750 million, a 10% increase compared to H1 2023.
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EBITDA: EUR147.6 million, 6% higher than H1 2023, maintaining an EBITDA margin of 20%.
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Profit Before Taxes: EUR31.6 million, compared to EUR48.7 million in H1 2023.
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Profit After Taxes: EUR22.9 million, down from EUR37.1 million in H1 2023.
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Passenger Numbers: 7.3 million passengers, a 9% increase from the previous year.
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Load Factor: 81.2%.
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Cash Balance: EUR814 million at the end of H1 2024, after significant payouts.
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CapEx: EUR36 million, primarily for engines, MRO investment, and lounges.
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Aircraft Fleet: Delivery of three new NEO aircraft, totaling 31 new fleet aircraft.
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FX Loss: EUR4 million due to USD exchange rate movements.
Release Date: September 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aegean Airlines SA (AGZNF) reported strong performance in the first half of 2024, with growth in passenger numbers and revenues.
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The company carried 7.3 million passengers in the first half of 2024, a 9% increase compared to the same period last year.
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Revenues reached nearly EUR750 million, which is 10% higher than H1 2023, with EBITDA standing at EUR147.6 million, a 6% increase.
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The company has a strong cash position, with cash at the end of June 2024 reaching EUR814 million, up from EUR706 million at the end of 2023.
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Aegean Airlines SA (AGZNF) is expanding its fleet with the delivery of three new NEO aircraft in the first half of 2024, bringing the total to 31 new aircraft.
Negative Points
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Profit before taxes in H1 2024 amounted to EUR31.6 million, down from EUR48.7 million in 2023.
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The GTF engine issue has significantly impacted the company’s cost structure, affecting fuel, maintenance, and aircraft fleet costs.
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The grounding of aircraft due to mandatory engine inspections has caused operational disruptions and increased costs.
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Inflationary pressures and increased CO2 purchase costs have negatively impacted the company’s expenses.
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The USD exchange rate movements resulted in an FX loss of almost EUR4 million in H1 2024, compared to gains in the same period last year.
Q & A Highlights
Q: Can you provide an update on capacity growth and pricing dynamics for Q3 and Q4 2024? A: For Q3, we are offering 5% to 7% more capacity, mainly from Athens, compared to last year. Pricing is slightly lower than 2023 levels, but demand remains strong. For Q4, capacity is expected to be around 5% higher than Q4 2023. Regarding hedging, we have hedged 69% of our fuel needs for 2024 and 41% for 2025, with dollar hedging at 53% for 2024 and 32% for 2025. – Dimitris Gerogiannis, CEO
Q: How does Aegean Airlines’ pricing compare to competitors like Ryanair for Q3 and Q4? A: Our pricing in Q3 is slightly lower than last year but not significantly. We have a different model compared to Ryanair and do not see a significant drop in fares. We expect strong free cash flow, supporting our dividend policy. – Dimitris Gerogiannis, CEO
Q: What caused the increase in cash payments for lease amortization in the first half of 2024? A: The increase is due to the delivery of new NEO aircraft, continued payments on existing aircraft, and extending leases on older aircraft to replace capacity affected by grounded aircraft. – Dimitris Gerogiannis, CEO
Q: Can you comment on the operational challenges and improvements made in 2024? A: We have faced challenges with air traffic control delays across Europe, but improvements in our network design and operations have significantly reduced delays compared to last year. We are also focused on addressing infrastructure pressures due to increased air traffic. – Dimitris Gerogiannis, CEO
Q: What are the expectations for Aegean Airlines’ financial performance for the rest of 2024? A: We are pleased with our H1 financial results and expect 2024 to be another successful year. Despite operational challenges, we continue to generate strong cash flow and maintain a competitive cost structure. – Dimitris Gerogiannis, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
