Interim Results for the 6 months to June 2007

Key highlights

• Turnover rose 22% to €209m


• Total passengers carried up by 19% (or 372,090) from the previous year


• EBITDAR up 45% to €29.1m against €20.1m in the previous year


• Net profit for the period increased to €6.4m from €1.1m


• Total cost per available seat kilometer fell by 8.6%. Yield per passenger Kilometer reduced by 3%


• Balance sheet cash and cash equivalents totaled €30.1m prior gross IPO proceeds of €135m to be booked in the third quarter of 2007


• Average passengers per flight up to 91 from 89. Scheduled services load factor at 66.6%.

Eftichios Vassilakis, Executive Vice President, commented:

‘I am pleased to report positive momentum on our first set of results as a publicly listed company. Overall market growth in our main base Athens International Airport remains very strong with traffic up 10% in the first half of 2007 with Aegean Airlines significantly outperforming with 19% growth in the same period and a significant gain of market share. In international routes we have grown by 35% with a solid performance in most of our new routes. While H1 is not the important contributor to profitability we have managed to improve EBITDAR by 45% despite increased capacity from competitors and increased yield pressure. Furthermore, the improvement in our first half 2007 financial results was achieved without the positive contribution of the share capital increase that was completed in July and will only be included starting with Q3 financial statements.

The recent IPO represents an important milestone for our company since the gross proceeds of €135m, coupled with our improved positive results give us the necessary tools to implement our growth plans with financial security. Finally, it is important to note that both the qualitative and the cost efficiency related benefits stemming from our investment in new A-320 aircraft will only become significant starting from the second half of 2008 when the new aircraft will account for almost 50% of our total fleet seat capacity. We expect significant further gains in cost efficiency as our refleeting plans and distribution cost control efforts mature’.

Financial information in this announcement is presented on the basis of International Financial Reporting Standards (‘IFRS’) and is available on our website: www.aegeanair.com

	2007
	In € millions	January -June 2006	January -June 2007	Change In %
	Revenue	171.99	209.02	22%
	EBITDAR	20.08	29.13	45%
	EBIT	5.84	10.43	79%
	Pre-tax profit	0.84	7.97	846%
	Net earnings	1.05	6.38	507%
	Total number of passengers (in thousands)	1,966.493	2,338.6	19%
	Load factor - Scheduled services	69.7%	66.6%
	Average passengers per flight	89	91	2%
	Average Fare (Scheduled - €)	73.49	75.64	3%
	Yield (Revenue per RPK, in € cents)	14.05	13.60	-3%
	CASK (EBITDAR level, in € cents)	8.53	7.85	-5%
	CASK (EBT level, in € cents)	9.60	8.78	-9%

Overview

The company’s balance sheet and its financial results for H1 2007 have not been affected by the recent share capital increase as €135.2m of gross proceeds (€126.6m net of IPO related expenses) will be included as of Q3.

Aegean Airlines began 2007 with strong growth in travel demand. In the first six months the company flew over 2.3 million passengers, up 19%. Domestic traffic grew by 12%, with Aegean Airlines continuing to gain market share and successfully stimulating demand in the local market. International traffic grew by 35% to 781,330 passengers. Scheduled services load factor eased to 66.6% as a result of the increase in average aircraft seat capacity of 4% and the introduction of new international routes, especially seasonal. The number of average passengers per flight rose to 91 from 89.

Aegean Airlines network covers 7 countries on 30 year-round routes and 13 seasonal routes compared with 26 and 2 seasonal routes in the comparable 2006 period. In late 2006 Aegean Airlines opened Athens-Bucharest and Athens-Cairo routes while in 2007, the company is introducing new direct services from Athens to Frankfurt and Munich, code-shared with Lufthansa, whilst also doubling frequencies to Milan. With these new routes, the company aims to become more attractive in the point-to-point market and increase its feed into the Lufthansa global network. The company’s objective is to gradually increase its coverage and flight density to European destinations so that business as well as leisure passengers are offered an attractive competitive product.

The fleet renewal programme, which will see the present Boeing 737-300/400 fleet replaced by new aircraft of the Airbus A-320 family was initiated in Q1 2007 when Aegean Airlines took delivery of the first 3 A-320s. 2008 is going to be a much more significant year in terms of re-fleeting with 10 new Airbus arriving by the end of the year both replacing existing 737-300/400’s and adding capacity for growth. The fleet renewal program which will be completed by early 2010 will increase the attractiveness of our product and reduce operating costs.

First half financial results show continued improvements with total revenue rising by 22% to €209m, attributed to strong demand trend, on a flying program 29% larger in ASKs. Passenger yield was down 3% to €13.60 cents while revenue per available seat kilometer eased 5.5% to €9.12 cents, reflecting a combination of drivers like the recent new route openings, a longer stage length, a relatively weak yield environment prevailing on Western European routes and higher web sales contribution. The price of jet fuel remained high for the first six months of 2007 and similar to last year’s levels. Nevertheless, scale economies, increased RJ seat capacity (112 from 100 seats), rising contribution of web sales and a stronger Euro against the US dollar resulted to an 8.6% reduction of CASK, allowing us to significantly improve pre-tax earnings from €0.8m to €8.0m. Consequently, Aegean Airlines net earnings for the first six months of 2007 improved to €6.4m from €1.1m in the comparable 2006 period.

	Operating figures
		January -June 2006	January -June 2007	Change In %
	Capacity
	Number of aircraft (at period end)	21.0	24.0	14%
	Average number of aircraft in operation	19.5	22.8	17%
	ASKs (in millions)	1,782	2,291	29%
	Total available seats	2,892,054	3,477,501	20%
	Total Block Hours	27,088	33,243	23%
	Total Sectors Flown	22,078	25,628	16%
	Average capacity per aircraft employed	140	145	4%
	Network
	Number of year-round scheduled routes served	26	30	15%
	Average sector length	578	616	7%
	Passengers
	By type of service:
	Schedule passengers	1,813,017	2,159,185	19%
	Charter passengers	153,476	179,398	17%
	By destination:
	Domestic	1,388,356	1,557,253	12%
	International	578,137	781,330	35%
	Total number of passengers	1,966,493	2,338,583	19%
	RPKs (in millions)	1,224	1,537	26%
	Load factor - Sceduled services	69.7%	66.6%

	Profit & Loss account
	In € millions (Cons)	January -June 2006	January -June 2007	Change In %
	Revenue
	Scheduled Services	133.23	163.32	23%
	Charter	17.14	17.73	3%
	Other (cargo, service charge, executive aviation)	8.26	9.48	15%
	Airport charges	13.36	18.49	38%
	Total revenue	171.99	209.02	22%
	Other operating income	0.76	1.76	131%
	Operating expenses
	Employee benefits	(25.59)	(31.04)	21%
	Aircraft fuel	(35.23)	(40.66)	15%
	Aircraft maintenance	(18.57)	(24.38)	31%
	Overflight expenses	(6.91)	(8.77)	27%
	Ground handling expenses	(5.01)	(6.36)	27%
	Airport charges	(24.25)	(29.76)	23%
	Catering expenses	(4.27)	(6.21)	45%
	Distribution expenses	(17.66)	(17.60)	0%
	Marketing and advertising expenses	(1.99)	(1.73)	-13%
	Inventories consumption	(1.76)	(1.96)	12%
	Other operating expenses	(11.44)	(13.18)	15%
	EBITDAR	20.07	29.13	45%
	EBITDAR margin	11.7%	13.9%
	Aircraft leases	(11.16)	(16.70)	50%
	EBITDA	8.92	12.43	39%
	EBITDA margin	5.2%	5.9%
	Depreciation	(3.08)	(2.00)	-35%
	EBIT	5.84	10.43	79%
	EBIT margin	3.4%	5.0%
	Interest income	4.26	1.72	-60%
	Interest expense	(9.26)	(4.18)	-55%
	Gains on sales of subsidiaries	-	0.0
	Losses on sales of associates	-	-
	EBT	0.84	7.97	846%
	EBT margin	0.5%	3.8%
	Income Tax	(0.25)	(1.59)	533%
	Profit / (loss) after tax from continuing operations	0.59	6.38	979%
	Profit from discontinued operations	0.46	-	n.m.
	Profit after tax	1.05	6.38	507%
	Net profit margin	0.6%	3.1%

	Key performance Indicators
	In € cents	January -June 2006	January -June 2007	Change In %
	Passenger Yield (Revenue per RPK)	14.05	13.60	-3.2%
	RASK (Revenue per ASK)	9.65	9.12	-5.5%
	CASK (EBITDAR level)	8.53	7.85	-7.9%
	CASK (EBT level)	9.60	8.78	-8.6%
	Expenses per ASK
	Employee benefits	1.44	1.35	-5.7%
	Aircraft fuel	1.98	1.77	-10.2%
	Depreciation	0.17	0.09	-49.5%
	Aircraft leases	0.63	0.73	16.4%
	Aircraft maintenance	1.04	1.06	2.1%
	Overflight expenses	0.39	0.38	-1.2%
	Ground handling expenses	0.28	0.28	-1.3%
	Airport charges	1.36	1.30	-4.5%
	Catering expenses	0.24	0.27	13.0%
	Distribution expenses	0.99	0.77	-22.5%
	Marketing and advertising expenses	0.11	0.08	-32.5%
	Inventories consumption	0.10	0.09	-13.1%
	Other operating expenses	0.64	0.58	-10.4%

	Balance Sheet - Summary
	In € millions (Cons)	Dec-06	Jun-07
	Total fixed assets	71.8	100.8
	Cash and cash equivalents	24.4	30.1
	Other current assets	70.6	69.1
	Total assets	166.8	200.0
	Total equity	16.5	23.2
	Long term Liabilities	37.5	37.9
	Short term Liabilities	112.8	138.9
	Total equity and liabilities	166.8	200.0

	Cashflow - Summary
	In € millions (Cons)	Jan - Jun 2006	Jan – Jun 2007
	Net cash flows from operating activities	25.5	12.5
	Net cash flows from investing activities	(10.3)	1.9
	Net cash flows from financing activities	(14.4)	(8.6)
	Net (decrease)/ increase in cash and cash equivalents	0.8	5.8
	Cash and cash equivalents at the beginning of the period	7.6	24.4
	Cash and cash equivalents at the end of the year	8.4	30.1

About Aegean Airlines

Aegean Airlines is a full service airline, having a leading domestic position in Greece and a growing presence in international scheduled routes between Greece and destinations in Europe and neighboring countries. The company offers its passengers premium services such as a dual-class cabin configuration, in-flight catering and reserved seating, while maintaining a lean cost structure. Aegean Airlines is also a Regional Partner of Lufthansa providing access for its passengers to Lufthansa’s global network.

Conference Call

Aegean Airlines will host a conference call with financial analysts to discuss the first half of 2007 financial results on 23 August 2007 at 17:00 Athens time (15:00 London time and 10:00 New York time). Interested parties can dial the following numbers:

Greek participants dial in: +30 211 180 2000, +30 210 94 60 800
UK participants dial in: +44 (0) 800 3769 250
US participants dial in: +1 866 288 9315
Other international dial in: +44 (0) 20 70753 205