Net losses after tax of €28 mil. in Q3-20, carrying 2 mil. passengers €187,1 mil. net losses after tax in the Nine-month period
and a 67% decline in revenue
AEGEAN announces a trading update for the third quarter and nine-month period ending September 30, 2020.
The partial lifting of travel restrictions across Europe as of July allowed the gradual resumption of international flights. Nevertheless, several countries remained inaccessible, demand was weak due to the pandemic while the lack of coordination on travel protocols weighed on the restart efforts. During the third quarter of 2020, AEGEAN operated 49% less flights than in 2019 while passenger traffic was 62% lower than last year. Load factors fell to 65,7% from 87,7%. Even under these restrictions the Company carried 2 mil. passengers in the quarter, flying to 78 international and domestic destinations.
With the course of the pandemic and the renewed restrictions, especially after August, determining the level of operations, revenue during the third quarter stood at €155,1 mil. from €512,5 mil. in 2019 while net losses after tax reached €28,3 mil. from net earnings of € 90,2 mil. in the same period in 2019.
Overall in the Nine-month period revenue reached €342,5 mil. from €1,031 bn in 2019, while passenger traffic reached 4,4 mil. passengers. Net losses after tax for the Nine-Month period totaled €187,1 mil. from net earnings of €77,1 mil. in the respective period last year.
Mr. Dimitris Gerogiannis, CEO of AEGEAN, commented:
“During Q3 we also resumed our international operations, wherever possible, implementing strict health measures onboard our aircraft. We are proud that our efforts have been recognized by Skytrax, with the Company receiving a 4-star COVID-19 Airline Safety Rating. We welcomed 2 mil. passengers and managed to limit losses to one third of the losses recorded in the previous (Q2) quarter.
For the winter 2020/21 season the second wave of the pandemic, renewed travel restrictions and recently lockdowns across Europe and Greece will limit our activity to levels lower than 20% of the respective 2019 period.
The possibility of the initiation of vaccine distribution in the early 2021 as well as the adoption of common travel protocols could potentially allow for a gradual and partial recovery as 2021 progresses. We continue to focus the necessary flexibility to cater for the needs of our customers in a constantly changing environment while also exploring possible measures to support our financial position”.
Cash and short-term financial investments reached €433,3 mil. at period end 30.09.2020 while borrowings outstanding (Bank Debt and Bond Loan) reached €290 mil.1
The Company has taken delivery of the 7th NEO aircraft of the Airbus A320NEO family on November 21th (and the second A321) of the total order of 46 aircraft.