Third quarter and nine-month 2022 trading update

Thursday, 10-11-2022

Strong Profitability and Revenue in the third quarter and nine-month period of 2022.

  • €1,02 bn. Consolidated Revenues in the nine-months, an increase of 109% and €571,4 mil. in the third quarter, an increase of 71% compared with 2021.
  • €93,2 mil. Net Profit in the nine-months and €120,8 mil. in the third quarter. 
  • 9,4 mil. Passengers in the nine-months and 4,6 mil. in the third quarter. 

AEGEAN announces a trading update for the third quarter and nine-month period ending September 30, 2022. 

Robust demand combined with network expansion and fleet growth with new aircraft deliveries contributed to the passenger traffic recovery in the third quarter, with the Group carrying 4,6 mil passengers. 

AEGEAN recorded strong profitability driven by higher Load factor at 84%, 14 p.p. higher compared with the same period in 2021 and higher average fares, against a backdrop of extremely high fuel costs and the significant strengthening of the dollar against the euro.
 
Consolidated revenue for the third quarter reached €571,4 mil., 71% higher with Profit before taxes at €152,1 mil., 158% higher than 2021 on a comparable basis. Net Income reached €120,8 mil. Third quarter performance, in revenues and profitability, is higher than pre-crisis levels with total capacity offered in the period marginally lower in ASK. 

Overall, in the nine-month period, Consolidated revenues exceeded €1 bn., 109% higher than 2021, while passenger traffic recorded an 89% increase. Net Income reached €93,2 mil. reversing headline losses of €27,1 mil. in the same period of 2021. It is important to note that including third quarter, total profitability is higher compared also with the pre-crisis nine-month period of 2019. Aegean’s effective jet fuel and USD hedging also had significant impact in mitigating the effect of their increasing cost. 

As of 30.09.2022, cash and cash equivalents balance was €619,0[1]  mil.

 Mr. Dimitris Gerogiannis, AEGEAN’s CEO, commented:

“We are pleased to have successfully navigated multiple challenges, delivering strong profitability and indeed one of the best set of results for our industry, after two extremely difficult years.

Efficient management of our network, fares structure and costs coupled with our people’s daily effort to best serve our passengers, contributed to this result. 
We are confident that through further developing our competitiveness and through our investment in our new fleet and new services, we will continue to create value for our shareholders and our country and also to offer our staff new opportunities for development, despite the geopolitical and economic headwinds which once again seem to be increasing”.

[1] Includes financial assets of €50,0 mil.

Financial Results and Operating Metrics for the Third quarter and nine-month 2022
 

(in € mil.) Third quarter 2021 Third quarter  2022 % change Nine months 2021 Nine months 2022 %
change
Revenue 333.9 571.4 71% 486.8 1,019.50 109%
Pre-tax profit/(loss) for the period (Headline) 58.8 152.1 158% -32.9 121.4 n.m.
Νon-headline (exceptional) income* 62.7 - - 62.7 - -
Pre-tax profit/(loss) for the period 121.5 152.1 25% 29.8 121.4 308%
Net profit/(loss) for the period 107.2 120.8 13% 28.8 93.2 224%
* Total non-headline (exceptional) income of €62,7 mil which include the state aid amount net of the warrants valuation and a provision related to the restructuring of the fleet was recognized.

 
  Third quarter  2021 Third quarter  2022 %
change		 Nine months 2021 Nine months 2022 %
change
Total Passengers (‘000) 3.318
 4.666   41%  4.968 9.396   89%
Load Factor (RPK/ASK) 70,3%  83,9%  13,6pp  64,0%  79,0%   15,0 p.p.
ASKs (in millions) 4.823  6.136   27% 7.497   12.648 69%
 
Κey financial and operating metrics as a percentage of the corresponding results for the period of 2019

 

2022 as a % of 2019 First Quarter 
2022		 Second Quarter
2022		 Third Quarter
2022		 Nine months 2022
ASKs  73%  84%  97%  88%
Revenue  70%  94%  111%  99%
Pre-tax profit for the period  -  56%  123%  114%

 
Aegean at a glance

(in € mil.) Q3 2021 Q3 2022 % change 9M 2021 9M 2022 % change
Revenue 333.9 571.4 71% 486.8 1,019.50 109%
EBITDA 104.61 197.8 89% 94.51 235.5 149%
Pre-tax earnings/(Loss) 58.81 152.1 158% (32,9)1 121.4 -
Net earnings/(Loss) 51.31 120.8 136% (27,1)1 93.2 -
Total passengers (in thousands) 3,318 4,666 41% 4,968 9,396 89%
Average passengers per flight 109 130 19% 93 121 30%
Load factor - Scheduled services (RPK/ASK) 70.30% 83.90% 13,6pp 64.00% 79.00% 15,0pp
Load factor - Scheduled services (Pax/AVS) 71.90% 84.30% 12,4pp 63.70% 78.60% 14,9pp
Average sector length (km) 891 950 7% 803 913 14%
RASK (Revenue per ASK, in € cents) 7.01 9.6 38% 6.61 8.3 26%
Yield (Revenue per RPK, in € cents) 9.91 11.5 16% 10.31 10.6 2%
CASK (EBT level, in € cents) 5.81 7.2 24% 7.01 7.4 5%
CASK (EBT level, in € cents) - excl. fuel costs 4.51 5 10% 5.91 5.4 -9%
Note: 
1 Excluding the impact of non-headline (exceptional) income. 
 
Consolidated Income Statement- Three months ended September 2022
 
(in € mil.) Q3 2021 Q3 2022 % change Q3 22 vs Q3 21
Scheduled Services 280.2 489.7 75%
Charter 20.4 33.8 66%
Other 33.3 47.9 44%
Total Revenue 333.9 571.4 71%
Other operating income 96.1 20.2 -79%
Employee benefits -21.9 -39 78%
Aircraft fuel -59.6 -133.2 123%
Aircraft maintenance -49.7 -52.4 5%
Overflight expenses -17.2 -23.5 37%
Ground handling expenses -18.7 -26.9 44%
Airport charges -14.9 -22 48%
Catering expenses -8.6 -11 27%
Distribution expenses -18.4 -29.2 59%
Marketing & advertising expenses -4.1 -5.6 36%
Other operating expenses -46.9 -39.6 -16%
Leases -2.6 -11.5 338%
EBITDA 167.3 197.8 18%
EBITDA (excluding non-headline (exceptional) income) 104.6 197.8 89%
Depreciation -34.2 -33.3 -2%
EBIT 133.1 164.5 24%
EBIT margin 39.90% 28.80% -
EBIT (excluding non-headline (exceptional) income) 70.4 164.5 134%
Financial results -11.6 -12.4 7%
Pre-tax Profit/(Loss) 121.5 152.1 25%
EBT margin 36.40% 26.60% -
Pre-tax Profit/(Loss) (excluding non-headline (exceptional) income) 58.8 152.1 158%
Income Tax -14.4 -31.2 117%
Net Profit/(Loss) after tax 107.2 120.8 13%
Net Profit/(Loss) after tax (excluding non-headline (exceptional) income) 51.3 120.8 136%
    
Consolidated Income Statement- Nine months ended September 2022
   

(in € mil.)
9M 2021
9M 2022		 % change
9M 22 vs 9M 21
Scheduled Services 403.4 869 115%
Charter 28.2 55.4 97%
Other 55.2 95.1 72%
Total Revenue 486.8 1,019 109%
Other operating income 100.9 35 -65%
Employee benefits -47.5 -90.3 90%
Aircraft fuel -87.8 -254.4 190%
Aircraft maintenance -79.3 -108.5 37%
Overflight expenses -26.8 -49.7 85%
Ground handling expenses -31.8 -55.5 75%
Airport charges -28 -51.7 85%
Catering expenses -13.7 -25.5 86%
Distribution expenses -30.3 -60.9 101%
Marketing & advertising expenses -8.5 -13.5 60%
Other operating expenses -72.3 -90.1 25%
Leases -4.4 -18.9 327%
EBITDA 157.2 235.5 50%
EBITDA (excluding non-headline (exceptional) income) 94.5 235.5 149%
Depreciation -99.2 -93.3 -6%
EBIT 58 142.2 145%
EBIT margin 11.90% 13.90%
EBIT (excluding non-headline (exceptional) income) -4.7 142.2 -
Financial results -28.3 -20.7 -27%
Pre-tax Profit/(Loss) 29.8 121.4 308%
EBT margin 6.10% 11.90%
Pre-tax Profit/(Loss) (excluding non-headline (exceptional) income) -32.9 121.4 -
Income Tax -1 -28.2 2699%
Net Profit/(Loss) after tax 28.8 93.2 224%
Net Profit/(Loss) after tax (excluding non-headline (exceptional) income) -27.1 93.2 -
   
Balance Sheet Aegean Group- Summary
 
(in € mil.) December 2021 September 2022
Total Fixed Assets 814.3 1,156.10
Cash & Cash Equivalents1 462.1 568.9
Financial Assets Available for Sale 12.3 50
Other Current Assets 251.7 326.4
Total Assets 1,540.40 2,101.50
Total Equity 213.6 360.3
Lease Liabilities 414.2 721.5
Loans 346.2 337.1
Other Liabilities 566.3 682.5
Total Equity and Liabilities 1,540.40 2,101.50
Note:
1. Includes restricted cash of €19,5 mil. in 31/12/2021.
 
 
Cash Flow Aegean Group- Summary

 

(in € mil.) Jan-Sep 2021 Jan-Sep 2022
Net cash flows from operating activities 232.8 260.1
Net cash flows from investing activities -49.3 -135.3
Net cash flows from financing activities -100.9 -24.3
Net (decrease)/ increase in cash and cash equivalents 82.6 100.5
Cash at the beginning of the period 437.1 442.6
Foreign exchange difference impact in cash 3.8 25.8
Cash at the end of the period 523.5 568.9

 
Group operating figures
 

Q3 2021 Q3 2022 % change 9M 2021 9M 2022 % change
Capacity
ASKs (in millions) 4,823 6,136 27% 7,497 12,648 69%
Total available seats (000) 4,640 5,557 20% 7,848 11,995 53%
Total Block Hours 48,768 65,709 35% 79,358 133,154 68%
Total Sectors Flown 30,496 35,958 18% 53,401 77,441 45%
Average capacity per flight 152 155 2% 147 155 5%
Average sector length (km) 891 950 7% 803 913 14%
Passengers (΄000)
By type of service:
Schedule passengers 3,161 4,383 39% 4,780 8,967 88%
Charter passengers 157 283 80% 188 429 128%
By network:
Domestic 1,527 1,832 20% 2,445 3,943 61%
International 1,791 2,834 58% 2,523 5,453 116%
Total number of passengers 3,318 4,666 40.60% 4,968 9,396 89%
RPKs (in millions) 3,393 5,140 51% 4,797 9,980 108%
Pax/flight 109 130 19% 93 121 30%
Load factor- Scheduled (Pax/AVS) 71.90% 84.30% 12,4pp 63.70% 78.60% 14,9pp
Load factor- Scheduled (RPK/ASK) 70.30% 83.90% 13,6pp 64.00% 79.00% 15,0pp