AEGEAN AIRLINES reports a 39% increase in net profits for the year ended 31 December 2007

Aegean Airlines announces strong improvement in the financial results for the year ended December 31, 2007. More specifically, total revenue rose by 20% to €482.7m from €401.1m, resulting from strong passenger growth and successful network expansion. Noteworthy, Aegean Airlines showed an improvement in profitability for the full year 2007 besides increased competitive conditions prevailing on Western European markets and the sharp rise in oil prices in the last four months of the year. Pre-tax profits increased 30% to €44.6m from €34.4m. Net earnings after tax for the full year jumped 39% to €35.8m. Net earnings growth from continuing operations was even higher, standing at 45%. Key factors which contributed to profitability improvement were the rise in average passengers per flight and distribution efficiencies due to rising web bookings.

Aegean Airlines welcomed 5.2 million passengers on board in 2007, achieving an 18% y-o-y growth. Domestic traffic increased by 10% with Aegean Airlines carrying 3.4 million passengers. International traffic rose by 35%, reaching 1.9 million passengers.

The fleet renewal programme was initiated in 2007 and will be completed in 2010. Aegean Airlines, continuing its expansion path, has increased the total number of Airbus A320/321 orders to 27 from 25, by exercising its option for 2 additional A321 with delivery in 2009 (total order of 23 A320 and 4 A321).

Dimitris Gerogiannis, Managing Director, commented:

"I am pleased to report healthy full year financial and operating performance. 2007 has been an important year for Aegean Airlines as the share capital increase and the consistent improvement of our results provide financial security for implementing our growth plans. In addition, in 2007 we have exceeded the 5 million passengers mark, reporting an 18% rise in traffic. 2008 is also expected to be an important year for our company as by the summer period, Aegean Airlines will cover 6 out of 7 most popular international destination from Athens – with the most important new one being London - with brand new Airbus A320/321. The operation of a new fleet will improve the company’s image and competitive position, allowing us to achieve operational efficiencies.

Nevertheless, 2008 will be challenging due to the uncertainty in financial markets and conditions and the sharp rise in oil prices. In response to the aforementioned challenges the company has accelerated the fleet renewal programme through the early re-delivery of the last Boeings 737-300/400 by June 2009. The completion of the fleet renewal programme one year earlier than the original plan aims at bringing forward the benefits related to the operation of a homogeneous young fleet, both in terms of revenues and in terms of operating costs."

Financial Results 2007

	Financial Results 2007
	In € m	2006	2007	%
	Revenue	401,1	482,7	20%
	EBITDAR1	69,9	83,1	19%
	EBIT2	40,0	42,9	7%
	Pre-tax earnings	34,4	44,6	30%
	Net earnings after tax and minority interest	25,7	35,8	39%

¹ Earnings before interest, tax, depreciation and lease payments
² Earnings before interest and tax

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.