Third quarter and nine-month 2021 trading update

Wednesday, 24-11-2021

€59 mil. headline pre-tax profit, 3,3 mil. passengers and doubling of revenues in the third quarter of 2021 compared with 2020.

First profitable quarter since the beginning of the pandemic.

Nine-month headline pre-tax result remains loss making.

AEGEAN announces a trading update for the third quarter and nine-month period ending September 30, 2021. 

Following the introduction of EU Digital COVID Certificate and the easing of travel restrictions during the third quarter of 2021, AEGEAN operated with increased capacity and managed to   double its revenue and international passenger traffic compared with the third quarter of 2020.

The Group offered 4,6 mil. seats and carried 3,3 mil. passengers with domestic traffic reaching 1,5 mil. passengers and international traffic 1,8 mil. passengers. Load factor for the period stood at 70,3%, higher than the third quarter of 2020, which stood at 65,7%, but significantly lower than pre-pandemic levels of 87,7% in the corresponding period in 2019.

Consolidated revenues amounted to €333,9 mil., an increase of 115% compared with the third quarter of 2020. Headline profit before taxes on a comparable basis amounted to €58,8 mil. in the third quarter of 2021 from losses before taxes totalling €36,9 mil. in the third quarter of 2020.

It is important to note that the third quarter of 2021 is the first profitable quarter since the start of the pandemic in which AEGEAN recorded headline profitability by offering 76% of its capacity in ASK’s compared with the third quarter of 2019. During this period the company operated with direct international flights from its bases in Athens, Thessaloniki, Heraklion, Rhodes, Chania, Corfu, Mykonos and Larnaca, supporting the gradual return to normality and Greece’s tourism.

In the nine-month period of 2021, which included the effect of the second lockdown that restricted significantly activity for the first half of the year, consolidated revenue stood at €486,8 mil., 42% higher than the respective period in 2020. The Group carried 5 mil. passengers up from 4,4 mil. passengers in the nine-month period of 2020 while headline losses before taxes stood at €32,9 mil. from €237,7 mil. losses before taxes in the respective period in 2020.

Following the completion of the share capital increase of €60,0 mil. in June 2021, which was a condition precedent for the completion of the state aid, the Company received in July 2021 the approved by EU state aid for the partial compensation of the 2020 losses occurred due to the pandemic. The state aid amount was recognized in the income statement net of the warrants valuation. Moreover, a provision related to the restructuring of the fleet was recognized. The total effect of the three aforementioned factors amounted to total non-headline (exceptional) income of €62,7 mil., which is not included in the above headline profit for the three and nine-month period.

Taking into account the above-mentioned non-headline (exceptional) income, Profit before Taxes amounted to €121,5 mil. in the third quarter of 2021 and €29,8 mil. in the nine-month period of 2021.

Cash and cash equivalents stood to €543,5 mil. on 30.09.2021, despite the significant increase in pre-delivery payments to Airbus during the third quarter ($43 mil.) for the upcoming aircraft deliveries and the repayment of the €92 mil. loan credit facility. Following the repayment, the total outstanding amount of the issued bonds and loans stood at €344 mil. on 30.09.2021 down from €440 mil. on 31.12.2020.

Mr. Dimitris Gerogiannis, AEGEAN’s CEO, commented:
“Our Q3 performance demonstrates that we have effectively managed the gradual recovery in demand to and within our country and the progressive lifting of intra-European travel restrictions. Once more we managed our network flexibly taking advantage of opportunities in major source markets like Germany, France, Belgium, Netherlands and Austria while also adjusting to significant restrictions in markets like UK, Russia, Scandinavia and Israel which limited our activity.

We have completed the process of strengthening our capital base and accelerated pre-delivery payments to Airbus, necessary for the accelerated delivery of 22 additional new Airbus A320/321neo aircraft within 2022-2023, boosting our competitiveness and improving our ability for new services to our customers. We have also efficiently managed our operating costs. Despite the under-utilization of our fleet where we offered 75% of pre-covid capacity and the adverse effect of load factors which were significantly lower than pre-pandemic levels, we were one of the few listed airlines in Europe which generated a positive headline result in the third quarter.

The pandemic and its effects are still with us with its impact expected to be evident particularly during the seasonally weak winter period. However, we believe that demand in 2022 will be stronger as of the second quarter the year, allowing us an improved exploitation of our activity and ongoing fleet investments.” 

Consolidated Results

 

 
(in € mil.)
Headline  		  Q3-2021
Non headline		  
Total		  Q3-2020
 
  %
change
Revenue  333,9  - 333,9  155,1   115%
EBITDA1 104,6  62,7   167,3 2,5  6702% 
Pre-tax profit/(loss) for the period  58,8    121,5  (36,9)  -
Net profit/(loss) for the period 51,3     107,2 (28,4)  - 

 
(in € mil.)
Headline  		  9M-2021
Non headline		  
Total		  9M-2020
 
  %
change
Revenue  486,8 -  486,8   342,5  42%
EBITDA1 94,5  62,7   157,2  (47,1)  -
Pre-tax profit/(loss) for the period  (32,9)   29,8  (237,7)  - 
Net profit/(loss) for the period  (27,1)    28,8 (187,2)  - 
Note
1 EBITDA: Earnings (Losses) before interest, tax, depreciation & amortization. 

Passenger Traffic

 

 Q3 2020 Q3 2021  % change
  9M-2020 
 9M-2021 % change 
Domestic Passengers (‘000)   1.067  1.527 43%   2.291 2.445   7%
International Passengers (‘000)  881  1.791  103%  2.120 2.523   19%
Total Passengers (‘000) 1.948   3.318 70%  4.411  4.968   13%
Load Factor (RPK/ASK)  65,7%  70,3%  4,6pp 69,5%  64,0%  -5,5pp 
Passengers per flight 97  109  12%  99  93  -6% 

Aegean at a glance

 
 
(in € mil.)		 Q3 2020 Q3 2021 % change  9M 2020  
 9M 2021  %
change
Revenue 155,1  333,9  115%   342,5  486,8 42% 
EBITDA  2,5  167,3  6702% (47,1)  157,2  - 
Pre-tax earnings/(Loss)  (36,9)  121,5  - (237,7)  29,8  - 
Net earnings/(Loss) (28,4)   107,2 -   (187,2) 28,8  - 
Total passengers 
(in thousands)		 1.948  3.318  70%   4.411 4.968   13%
Average passengers per flight  97  109 12%  99   93  -6%
Load factor - Scheduled services (RPK/ASK) 65,7%   70,3% 4,6pp   69,5%  64,0% -5,5pp 
Load factor - Scheduled services (Pax/AVS) 68,4%  71,9%  3,5pp   69,0%  63,7% -5,3pp 
Average sector length (km)  787 891   13% 781  803   3%
RASK 
(Revenue per ASK, in € cents)1		 5,9   7,0 19%  6,0  6,6  10% 
Yield 
(Revenue per RPK, in € cents)1		 8,9   9,9 11%   8,7  10,3 19% 
CASK (EBT level, in € cents) 1  7,3  5,8 -20%   10,0 7,0   -30%
CASK (EBT level, in € cents) - excl. fuel costs1  5,9 4,5  -23%   8,5 5,9   -31%
Note: 
1 Excluding the impact of non-headline (exceptional) income. 

Consolidated Income Statement- Three months ended September 2021


 
(in € mil.)
Headline  		  Q3-2021
Non headline		  
Total		  Q3-2020
 
  %
change
Scheduled Services 280,2   - 280,  130,2 115%
Charter 204,   - 20,4  6,7  205%
Other  33,3  - 33,3  18,2  83%
Total Revenue  333,9 -  333,9  155,1  115%
Other operating income  3,5 92,5  96,1  2,1  4581% 
Employee benefits  (21,9) -  (21,9) (19,7) 11% 
Aircraft fuel  (59,6)  - (59,6)  (37,4)  59% 
Aircraft maintenance  (49,7)  - (49,7)  (34,4)  45%
Overflight expenses (17,2)   - (17,2) (9,9)  74% 
Ground handling expenses (18,7)   - (18,7)  (11,8) 59% 
Airport charges  (14,9) -  (14,9) (8,1)  83%
Catering expenses  (8,6) -  (8,6) (5,3)  62%
Distribution expenses  (18,4) -  (18,4) (14,1)  31% 
Marketing & advertising expenses  (4,1)  - (4,1)  (1,4) 190%
Other operating expenses  (17,1)  - (17,1) (12,5) 37% 
Provisions for fleet restructuring
  - (29,8)  (29,8)  - - 
Leases  (2,6) -  (2,6) (0,1) 1743% 
EBITDA  104,6 62,7  167,3  2,5 6702% 
Depreciation  (34,2) -  (34,2)   (37,3) -8% 
EBIT 70,4    133,1   (34,8)  -
EBIT margin 21,1%     39,9% -22,5%   
Financial results  (11,6) -   (11,6) (2,1)  462%
Pre-tax Profit/(Loss) 58,8    121,5  (36,9)  -
EBT margin 17,6%    36,4%  -23,8%  - 
Income Tax  (7,5)  - (14,4)   8,5 - 
Net Profit/(Loss) after tax   51,3   107,2  (28,4)  - 

 
Consolidated Income Statement- Nine months ended September 2021

 
 
(in € mil.)
Headline  		  9Μ-2021
Non headline		  
Total		  9Μ-2020
 
  %
change
Scheduled Services  403,4 -  403,4 285,8  41% 
Charter  28,2 -  28,2 9,9  184% 
Other  55,2 -  55,2 46,8  18% 
Total Revenue  486,8 -  486,8  342,5  42% 
Other operating income 8,3 92,5  100,9  9,6  952% 
Employee benefits (47,5)   - (47,5)  (62,1)  -23% 
Aircraft fuel (87,8)   - (87,8) (90,6) -3% 
Aircraft maintenance (79,3)  -  (79,3)  (70,3) 13% 
Overflight expenses (26,8)  -  (26,8)  (22,1)   21%
Ground handling expenses (31,8)  -  (31,8)  (26,0)  22%
Airport charges (28,0)   - (28,0)  (24,9)  12% 
Catering expenses (13,7)   - (13,7)  (11,8)   16%
Distribution expenses (30,3)   - (30,3) (31,3)  -3% 
Marketing & advertising expenses (8,5)   - (8,5) (6,7)  27% 
Other operating expenses (42,5)   - (42,5)  (51,3) -17% 
Provisions for fleet restructuring
 -  (29,8)  (29,8)  - - 
Leases  (4,4) -  (4,4)   (2,0) 122% 
EBITDA  94,5 62,7  157,2  (47,1) - 
Depreciation (99,2)  -  (99,2)  (110,4)   10%
EBIT (4,7)    58,0  (157,5)   -
EBIT margin  -1,0%   11,9% -46,0%   
Financial results (28,3)  -  (28,3)  (80,2) -65% 
Pre-tax Profit/(Loss) (32,9)    29,8  (237,7) - 
EBT margin  -6,8%   6,1%  -69,4%   
Income Tax  5,8 -  (1,0)  50,5  - 
Net Profit/(Loss) after tax   (27,1)   28,8 (187,2)  - 

 
Balance Sheet Aegean Group- Summary


 (in € mil.) September 2021  December 2020
Total Fixed Assets 868,8 838,8 
Cash & Cash Equivalents 531,21   466,21
Financial Assets Available for Sale  12,4 12,3 
Other Current Assets 202,7  123,8 
Total Assets  1.615,0 1.441,0 
Total Equity  224,2  77,6
Lease Liabilities  425,2 425,1 
Loans  343,9  437,2
Other Liabilities  621,8 501,1 
Total Equity and Liabilities  1.615,0  1.441,0
Note:
1 Includes restricted cash of €29,1 mil. and €7,6 mil. in 31/12/2020 and 30/09/2021 respectively.

Cash Flow Aegean Group- Summary

 
(in € mil.) Jan-Sep 2021 Jan-Sep 2020
Net cash flows from operating activities  232,8  (16,60
Νet cash flows from investing activities  (49,3) (45,6) 
Net cash flows from financing activities (100,9)  (16,2) 
Net (decrease)/ increase in cash and cash equivalents 82,6   (78,4)
Cash at the beginning of the period  437,1 505,1 
Foreign exchange difference impact in cash  3,8  (5,9) 
Cash at the end of the period  523,5 420,8 

   Q3 2020  Q3 2021  % change  9M 2020  9M 2021  % change
Capacity            
ASKs (in millions)  2.672  4.823 81%  5.876  7.497  27.6% 
Total available seats (000) 2.870  4.640  62%  6.424  75848 22% 
Total Block Hours   29.280 48.768  67% 65.258   79.358 22% 
Total Sectors Flown 20.095 30.496  52% 44.528   53.401 19.9% 
Average capacity per flight 143 152  7% 144 147  2%
Average sector length (km) 787  891 13%  781  803   3%
Passengers (΄000)            
By type of service:            
Schedule passengers  1.889  3.161 67%  4.319  4.780  11% 
Charter passengers  59 157  164%   91  188 106% 
By network:            
Domestic  1.067  1.527  43%  2.291  2.445 7% 
International  881  1.791  103%  2.120 2.523  19% 
Total number of passengers  1.948 3.318  70,3%   4.411 4.968   12,6%
RPKs (in millions)  1.756 3.393  93%   4.066 4.797  18% 
Pax/flight  97  109 12%  99  93  -6% 
Load factor- Scheduled (Pax/AVS) 68,4%  71,9%   3,5pp  69,0%  63,7% -5,3pp 
Load factor- Scheduled (RPK/ASK) 65.7%   70,3% 4,6pp  69,5%  64,0%  -5,5pp