Aegean Airlines Group announced a 5% increase in its passenger traffic (5.2 million) in the first half of 2016. The Greek airline reported consolidated revenue at €403.5 million ($450.75 million), which remains flat year over year.
Aegean and its subsidiary Olympic Air carried 2.5 million passengers on domestic flights while international passenger traffic rose by 10% to 2.7 million passengers.
The group reported consolidated net loss after tax at €23.7 million ($26.48 million) compared to net earnings of €14.8 million ($16.53 million) in 2015 during the seasonally weaker first half year.
During the first half year, the group recorded a positive trend in passenger traffic with the shortfall being more pronounced during the second quarter of the year.
In the domestic market, the weak economy, a significant increase in competitors’ capacity as well as an increase in VAT by 11 points (from 13% to 24%) led to further pressure on net average fares. At the same time, tourist arrivals in the international market, where the company as well as its competitors had invested significant additional capacity, grew by low single-digit rates in the second quarter of the year.
As a result of the imbalance between capacity growth and incoming traffic growth, especially during May and June, load factors and yields declined, mainly in the seasonal regional bases but also in Athens.
The group reported a weak financial result despite the benefits coming from lower oil prices.
Despite weak results in the first half, cash and cash equivalent, following the distribution of FY2015 dividend of €50 million ($55.85 million), reached €299.8 million ($334.91 million) on June 30, 2015 from €236.8 million ($264.53 million) at the end of the year, given higher pre-sold revenue which indicates an improvement in demand for the third quarter of the year.
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