Aegean Airlines S.A. (AEGEAN or the Company) hereby announces that, following a relevant notification of the Hellenic Republic, the European Commission has approved today state aid in the form of a direct grant in favor of Aegean of €120m to compensate the airline for damages suffered due to travel restrictions implemented in the EU to contain the spread of the coronavirus over the March 23 to June 30 period. The measure, which was assessed by the Commission under Article 107(2) (b) of the Treaty on the Functioning of the European Union (TFEU), covers part of damage suffered during the said period.

The measure is part of an overall agreement with the Hellenic Republic (HR). Specifically, the grant approved by the Commission is conditioned upon the airline successfully effecting a private investor share capital increase of €60m. Additionally, the HR shall receive free warrants (without consideration), with a strike price equal to the price that investors shall be offered new shares upon the capital increase. Warrants will be exercisable any time during the period between 2 to 5 years after the disbursement of the support by the Greek state so as for the Greek State to benefit from any future upside in the share value of the Company. Warrants received by the HR would have rights for the acquisition of shares representing 11.5% of the Company’s common shares post share capital increase.

The state support was agreed after taking into consideration the grave consequences caused by the coronavirus to the airline sector as well as Aegean’s substantial contribution to Greece’s tourism, overall economy and direct public revenues.

Following today’s approval by the European Commission, the Company plans to undertake all necessary corporate actions and submissions to the Capital Market Commission in the upcoming period, with the aim being to complete all necessary procedures within the first three to four months of 2021.