Third quarter and nine-month 2023 trading update

Tuesday, 14-11-2023

Strong growth and profitability in the nine-month period and third quarter driven by expansion to new destinations, higher international capacity along with targeted and continuous upgrade in fleet, services and product.  

€1,33 bil. of Consolidated Revenue, €367,4 mil. EBITDA and €170,7 mil. Net Profit in 9M-23, 83% higher than 9M-22.

Athens, November 14th, 2023 

AEGEAN announces a trading update for the nine-month period and the third quarter ending September 30th, 2023. 
Consolidated Revenue grew by 31% vs 9M-22, reaching €1,33 bil. The Group offered 15,7 mil. ASKs and welcomed 12,2 mil. passengers, 30% more than 9M-22, with 7,3 mil. passengers travelling to/from international destinations.
Higher load factor (+5 p.p. vs 9M-22) which stood at 84%, fleet upgrade with neo aircraft and jet fuel hedging, contributed to offsetting the impact of intense competition, inflationary pressures and rising interest rates. 
Pre-tax Profit stood at €217,5 mil., 79% higher than 9M-22, while Net Profit increased by 83% to €170,7 mil. from €93,2 mil. in 9M-22.
Cash, cash equivalents and other financial assets reached €755,5 mil.  on 30.09.2023, while Total Equity stood at €525,3 mil.  
Q3-23 was the best quarter in the Company’s history in terms of both revenue and profitability as Group Revenue increased 14% to €653,6 mil. Pre-tax Profit stood at €168,8 mil. and Net Profit reached €133,6 mil. from €120,8 mil. in Q3-22.
Strong passenger demand continued in Q3-23, with AEGEAN delivering a 17% increase in passenger traffic versus Q3-22 as it welcomed 5,5 million passengers, on the back of network expansion. AEGEAN flew its largest ever international network, with strong capacity growth of 15% in available seats compared with Q3-22, further supporting the upgrade of Greece’s tourism product. Load factor strengthened to 85,6% from 83,9% in Q3-22.
Mr. Dimitris Gerogiannis, AEGEAN’s CEO, commented:
"AEGEAN announces another strong set of results with record profitability, delivering one of the best set of 9M results in our sector. Our network expansion, the significant capacity investment with the addition of 3 mil. available seats in 2023 versus last year, along with robust demand for Greece, contributed to AEGEAN’s strong momentum. 
At the same time, rising outbound leisure travel supported by local demand, along with robust incoming traffic, further boosted the dynamics in our key hubs in Athens and Thessaloniki, with AEGEAN playing a pivotal role in these developments, given its capacity investment growth and its contribution to the distribution of tourist activity to all of the country’s regions.   
It is worth noting that following the excellent performance in 2022, a second consecutive record year validates the company’s strategy, prospects and relative market position in the post-covid era.  
Recent developments in the Middle East, however, demonstrate that we will continue to operate in a dynamic and challenging environment with low forward visibility. Similarly, on the operational front, it is evident that there will continue to be challenges from limits in soft and hard infrastructure as well as supply chain issues that will significantly impact operations.
We are working diligently within the initial budgeted timeframe to launch Training Center and the 3rd Party MRO operations. We have taken delivery of 3 flight simulators and other training equipment and we are gradually building up our capacity with qualified personnel, so as to initiate operation in both units in January 2024.”
In accordance with the Company’s November 6th, 2023 announcement, the Hellenic Republic on November 3rd, 2023, notified the Company of their intention to exercise their rights granted by all the warrants held on the Company’s shares. The Company’s Board of Directors will call an Extraordinary General Meeting of Shareholders so as to vote on the relevant decisions, in terms of potentially exercising the right to repurchase these rights with an objective to respond within the deadlines as provisioned and with a target of completion within the current year.
AEGEAN management will host a conference call to provide a Briefing on Current Developments on Thursday, 23 November 2023 (16:00 Athens time, 14:00 GMT).
Details will be available at: https://en.about.aegeanair.com/investor-relations/announcements/announcements/

Financial Results and Operating Metrics for the Third Quarter & Nine Months 2023

(in € mil.) Third Quarter 2022 Third Quarter 2023 % change Nine Months 2022 Nine Months 2023 % change
Revenue 571,4 653,6 14% 1.019,50 1.331,70 31%
EBITDA 197,8 227,9 15% 235,5 367,4 56%
EBIT 164,5 186,2 13% 142,2 253,7 78%
Pre-tax Profit 152,1 168,8 11% 121,4 217,5 79%
Net Profit 120,8 133,6 11% 93,2 170,7 83%

Third Quarter 2022 Third Quarter 2023 % change Nine Months 2022 Nine Months 2023 % change
Total Passengers (‘000) 4.666 5.473 17% 9.396 12.177 30%
RPKs (in millions) 5.140 5.940 16% 9.980 13.065 31%
ASKs (in millions) 6.136 6.970 14% 12.648 15.673 24%
Load Factor (RPK/ASK) 83,90% 85,60% 1,8pp 79,00% 83,70% 4,7pp

Net Debt Analysis
(in € mil.) 31.12.2022 30.09.2023
Cash and cash equivalents 527,9 755,5
Borrowings 268,2 220,4
Lease Liabilities 737,3 943,4
Net Debt 477,6 408,3
EBITDA- 12month trailing1 274,9 406,8
Net Debt / ΕBITDA 1,7x 1,0x
Note:
1 12-month trailing Earnings before interest, tax, depreciation and amortization (EBITDA), Jan. 2022 - Dec. 2022 and Oct. 2022 - Sep. 2023 respectively.


AEGEAN at a glance
(in € mil.) Third Quarter 2022 Third Quarter 2023 % change Nine Months 2022 Nine Months 2023 % change
Revenue 571,4 653,6 14% 1.019,50 1.331,70 31%
EBITDA 197,8 227,9 15% 235,5 367,4 56%
EBIT 164,5 186,2 13% 142,2 253,7 78%
Pre-tax Profit 152,1 168,8 11% 121,4 217,5 79%
Net Profit 120,8 133,6 11% 93,2 170,7 83%
Total passengers (‘000) 4.666 5.473 17% 9.396 12.177 30%
Average passengers per flight 130 135 4% 121 131 8%
Load factor - Scheduled services (RPK/ASK) 83,90% 85,60% 1,8pp 79,00% 83,70% 4,7pp
Load factor - Scheduled services (Pax/AVS) 84,30% 86,10% 1,8pp 78,60% 83,50% 4,9pp
Average sector length (km) 950 946 0% 913 927 1%
RASK (Revenue per ASK, in € cents)1 9,3 9,4 1% 8,1 8,5 5%
Yield (in € cents)1 11,1 11 -1% 10,2 10,2 0%
CASK (EBT level, in € cents) 7,2 7,1 -1% 7,4 7,3 -2%
CASK (EBT level, in € cents) - excl. fuel costs 5 5,2 4% 5,4 5,4 1%
Note:
1 Excluding other operating income.
Consolidated Income Statement - Third Quarter and Nine Months 2023
(in € mil.) Third Quarter 2022 Third Quarter 2023 % change Nine Months 2022 Nine Months 2023 % change
Scheduled Services 489,7 551,4 13% 869 1.133,10 30%
Charter 33,8 46,7 38% 55,4 76,1 37%
Other 47,9 55,6 16% 95,1 122,6 29%
Total Revenue 571,4 653,6 14% 1.019,50 1.331,70 31%
Other operating income 20,2 9,2 -54% 35 23,8 -32%
Employee benefits -39 -54,4 40% -90,3 -129,5 43%
Aircraft fuel -133,2 -132 -1% -254,4 -286 12%
Aircraft maintenance -52,4 -55,1 5% -108,5 -129,5 19%
Overflight expenses -23,5 -26,4 12% -49,7 -59,2 19%
Ground handling expenses -26,9 -30,9 15% -55,5 -69,8 26%
Airport charges -22 -26,8 22% -51,7 -65,2 26%
Catering expenses -11 -14,7 33% -25,5 -34,1 34%
Distribution expenses -29,2 -33,3 14% -60,9 -73,1 20%
Marketing & advertising expenses -5,6 -6,5 16% -13,5 -19,6 44%
Other operating expenses -39,6 -52,7 33% -90,1 -114,9 27%
Leases -11,5 -2,2 -81% -18,9 -7,2 -62%
EBITDA 197,8 227,9 15% 235,5 367,4 56%
Depreciation -33,3 -41,7 25% -93,3 -113,6 22%
EBIT 164,5 186,2 13% 142,2 253,7 78%
EBIT margin 28,80% 28,50% 13,90% 19,10%
Financial results -12,4 -17,4 40% -20,7 -36,3 75%
Pre-tax Profit 152,1 168,8 11% 121,4 217,5 79%
EBT margin 26,60% 25,80% 11,90% 16,30%
Income Tax -31,2 -35,2 13% -28,2 -46,8 66%
Net Profit after tax 120,8 133,6 11% 93,2 170,7 83%


Balance Sheet Aegean Group – Summary
(in € mil.) 31.12.2022 30.09.2023
Total Fixed Assets 1.203,30 1.469,10
Cash & Cash Equivalents1 463,7 580
Financial Assets Available for Sale2 64,2 175,5
Other Current Assets 289,2 294,2
Total Assets 2.020,40 2.518,70
Total Equity 348,1 525,3
Lease Liabilities 737,3 943,4
Loans 268,2 220,4
Other Liabilities 666,8 829,6
Total Equity and Liabilities 2.020,40 2.518,70
Notes: 
1 Includes restricted cash of €0,4 mil. on 30/09/2023 and restricted cash of €1,4 mil. on 31/12/2022.
2 Includes pledged fixed income securities of €10,4 mil. on 30/09/2023 and €10,4 mil. on 31/12/2022.

Cash Flow Aegean Group - Summary
(in € mil.) 30.09.2022 30.09.2023
Net cash flows from operating activities 241,1 396,5
Net cash flows from investing activities -97,6 -107,7
Net cash flows from financing activities -24,3 -59,5
Net (decrease)/ increase in cash and cash equivalents 119,2 229
Cash at the beginning of the period1 474,4 527,9
Foreign exchange difference impact in cash 25,8 -1,4
Cash at the end of the period1 619,4 755,5
Note:
1 Includes restricted cash and Financial Assets Available for Sale.

Group operating figures
Third Quarter 2022 Third Quarter 2023 % change Nine Months 2022 Nine Months 2023 % change
Capacity
ASKs (in millions) 6.136 6.970 14% 12.648 15.673 24%
Total available seats (‘000) 5.557 6.388 15% 11.995 14.640 22%
Total Block Hours 65.709 69.698 6% 133.154 157.473 18%
Total Sectors Flown 35.958 40.635 13% 77.441 92.855 20%
Average capacity per flight 155 157 2% 155 158 2%
Average sector length (km) 950 946 0% 913 927 1%
Passengers (΄000)
By type of service:
Schedule passengers 4.383 5.096 16% 8.967 11.593 29%
Charter passengers 283 377 33% 429 583 36%
By network:
Domestic 1.832 2.144 17% 3.943 4.858 23%
International 2.834 3.330 17% 5.453 7.319 34%
Total number of passengers 4.666 5.473 17% 9.396 12.177 30%
RPKs (in millions) 5.140 5.940 16% 9.980 13.065 31%
Average passengers per flight 130 135 4% 121 131 8%
Load factor- Scheduled Services (Pax/AVS) 84,30% 86,10% 1,8pp 78,60% 83,50% 4,9pp
Load factor- Scheduled Services (RPK/ASK) 83,90% 85,60% 1,8pp 79,00% 83,70% 4,7pp