Aegean Reports 2016 Profit Down 53 Percent

March 23, 2017

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Greek airline Aegean announced its 2016 results on Thursday, showing a 53 percent drop in net earnings, on weak demand partially due to higher tax.

Net profit for the year came in at EUR€32.2 million, down from 2015’s €68.4 million. Revenue was up 4 percent at €1.02 billion.

Aegean said a strong third quarter wasn’t enough to make up for the weakness in Q2, and that an increase in Value Added Tax on airfares impacted the full year results.

The airline carried just under 12.5 million passengers in 2016, a rise of 7 percent, with international numbers up 12 percent to 6.7 million. Domestic pax numbers rose by a more modest 2 percent to 5.7 million.

Traffic (in revenue passenger km) jumped 13 percent on an available seat km capacity increase of 12 percent, with resulting load factor up 0.6 percentage points at 77.4 percent.

The airline said it adjusted its network during the fourth quarter, helping its load factor, particularly on international routes.

Looking forward, Aegean’s Managing Director Dimitris Gerogiannis said “In 2017 we will continue to adjust our network and focusing on our Athens hub. Preliminary indications for the summer season are positive with a rising pre-bookings trend compared to last year.”

Aegean, the largest Greek airline by passengers carried, has a fleet of 61 aircraft operating to 145 destinations. It acquired former flag carrier Olympic Air in 2012.