Aegean Airlines : First Half 2019 results

PRESS RELEASE

First Half 2019 Financial Results

20% increase in Consolidated Revenue and 30% in Net Earnings in Q2 2019

drive improvement in First Half 2019 results

Kifissia, 16 September 2019

AEGEAN announces its first half 2019 results with consolidated revenue at EUR 519.4 mil., 14% higher compared to 2018 and net losses narrowing to EUR 13.0 mil. from EUR 13.8 mil. in 2018, including the effect of implementation of IFRS 16 for the first time. The adoption of IFRS 16 has a negative impact on results of EUR 3,8 mil. Therefore, net losses on a comparable basis, excluding IFRS 16 would have been EUR 9.2 mil. from EUR 13.8 mil. in 2018.

Strong performance during the second quarter, drove the improvement on first half results. The Group offered 12% ASK capacity increase in the second quarter aiming to support the extension of the tourism season. The increased effort resulted in a 10% overall traffic increase and a 15% increase in international traffic, achieving a rate of growth significantly higher than overall air arrivals to the country. Consolidated Revenue recorded a 20% increase in the second quarter, with a 30% increase in net earnings to EUR 22.2 mil. in the second quarter of 2019 from EUR 17 mil. in the respective 2018 period.

Total traffic in the first half of the year reached 6.5 mil. passengers, 9% higher than 2018. Passengers carried on domestic flights increased by 4% to 2.8 mil. International network traffic which accounts for 76% of consolidated revenue, increased by 12% to 3.7 mil. passengers. Load factor improved to 82.2% from 81.7%.

Cash and short-term financial investments reached EUR 602.3 mil.1 at period end 30.06.2019 while loans outstanding reached EUR 200 mil. following the issuance of the 7-year bond.

Mr. Dimitris Gerogiannis, CEO of AEGEAN, commented:

"We have followed our path of consistent growth by investing additional capacity in our international network. Our effort to extend the tourism season by flying more, earlier than usual, in the months of April-May and increase the utilization of our fleet contributed to positive results, despite the overall incoming tourism slowdown. Gradually extending the tourism season remains critical for both Greek tourism and

AEGEAN.

The evolution of the third quarter, which materially determines our annual result based on our current load factors and revenues remains positive, despite the marginal increase in total air traffic arrivals in our country.

1 Includes cash and cash equivalent, restricted cash (EUR 6.3 mil.) and financial investments in corporate bonds and money market funds (EUR 15.5 mil.).

1

we continue to work at full speed for the induction of our new Airbus A320 neo aircraft in our fleet in 2020".

In March 2019 Aegean successfully issued a seven-year EUR 200 mil. Common Bond Loan, with a 3.60% coupon rate.

Consolidated Results

	First	First		Second	Second	%
	Half	Half	%	Quarter	Quarter
(in EUR million)	2018	2019		2018	2019
Revenue	455.7	519.4	14%	290.3	347.4	20%
EBITDAR2	50.0	63.6	27%	53.0	72.0	36%
EBITDA3	(14.7)	62.8	-	20.7	71.3	244%
Pre-tax earnings / (Losses) for	(18.3)	(17.2)	-6%	24.3	31.5	30%
the period
Net earnings/ (Losses) for the	(13.8)	(13.0)	-5%	17.0	22.2	30%
period

Passenger traffic (in '000)

	First	First		Second	Second
	Half	Half		Quarter	Quarter
(in '000)	2018	2019	%	2018	2019	%
Domestic	2.659	2.767	4%	1.582	1.647	4%
International	3.277	3.683	12%	1.985	2.279	15%
Total	5.935	6.451	9%	3.567	3.926	10%
Load Factor 4	81,7%	82,2%	0,5pp	81,9%	82,1%	0,2pp
Avg number of passengers per
flight	123	126	3%	124	126	2%

Key Performance Indicators are posted on the company's website

http://en.about.aegeanair.com/investor-relations/financial-results/financial-results/

AEGEAN management will host a conference call to present and discuss First Half 2019 Financial Results, on Monday 16th September 2019, 15:00 Athens time / 13:00 UK time.

About AEGEAN

ΑEGEAN and Olympic Air carried 14 million passengers in 2018. 2019 network covers 151 destinations (31 domestic and 120 international) to 44 countries. Since June 30, 2010 AEGEAN is a member of STAR ALLIANCE, the strongest airline alliance worldwide. The Company has been honored with the Skytrax World Airline award, as the best European regional airline in 2019.

1. Earnings before interest, tax, depreciation and aircraft lease payments
2. Earnings before interest, tax and depreciation
3. Scheduled Revenue passenger km divided by Available Seat km

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AEGEAN at a glance

	Apr- Jun	Apr- Jun	Change	Jan- Jun	Jan- Jun	Change
Consolidated results (in EUR mil.)	2018	2019	in %	2018	2019	in %
Revenue	290,3	347,4	20%	455,7	519,4	14%
EBITDAR	53,0	72,0	36%	50,0	63,6	27%
EBITDA	20,7	71,3	244%	(14,7)	62,8	-
Pre-tax earnings / (Losses) for the
period	24,3	31,5	30%	(18,3)	(17,2)	-6%
Net earnings / (Losses) for the period	17,0	22,2	30%	(13,8)	(13,0)	-5%
Total number of passengers (in
thousands)	3.567	3.926	10%	5.935	6.451	9%
Average number of passengers per
flight	124	126	2%	123	126	3%
Load factor - Scheduled services
(RPK/ASK)	81,9%	82,1%	0,2pp	81,7%	82,2%	0,5pp
Load factor - Scheduled services
(Pax/AVS)	81,3%	81,8%	0,5pp	80,9%	81,6%	0,8pp
Average sector length (km)	921	942	2%	900	913	1%
RASK (Revenue per ASK, in € cents)	6,5	6,9	6%	6,24	6,51	4%
Yield (Revenue per RPK, in € cents)	7,9	8,4	6%	7,65	7,92	4%
CASK (EBT level, in € cents)	5,9	6,3	5%	6,48	6,72	4%
CASK (EBT level, in € cents) - excl. fuel
costs	4,6	4,8	4%	5,15	5,25	2%

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Profit & Loss account

Consolidated results (in EUR mil.)	Apr- Jun	Apr- Jun	Change	Jan- Jun	Jan- Jun	Change
2018	2019	in %	2018	2019	in %

Revenue
Scheduled Services	245,1	289,2	18%	388,1	433,3	12%
Charter	15,7	23,8	51%	20,6	29,3	42%
Other	29,4	34,4	17%	47,0	56,8	21%
Total revenue	290,3	347,4	20%	455,7	519,4	14%
Other operating income	3,9	3,7	-6%	7,6	8,8	15%
Employee benefits	(32,9)	(35,9)	9%	(62,9)	(67,4)	7%
Aircraft fuel	(61,8)	(76,4)	24%	(99,0)	(119,3)	20%
Aircraft maintenance	(41,9)	(48,3)	15%	(70,1)	(78,3)	12%
Overflight expenses	(18,2)	(19,9)	9%	(29,7)	(31,6)	7%
Ground handling expenses	(17,0)	(19,1)	12%	(28,6)	(31,6)	11%
Airport charges	(17,3)	(19,7)	14%	(29,2)	(33,5)	15%
Catering expenses	(8,6)	(9,8)	13%	(14,4)	(15,9)	11%
Distribution expenses	(20,2)	(21,8)	8%	(34,6)	(36,3)	5%
Marketing & advertising expenses	(3,9)	(4,8)	23%	(6,8)	(8,0)	19%
Other operating expenses	(19,3)	(23,5)	22%	(38,2)	(42,6)	11%
EBITDAR	53,0	72,0	36%	50,0	63,6	27%
EBITDAR margin	18,2%	20,7%		11,0%	12,2%
Aircraft leases	(32,2)	(0,7)	-98%	(64,8)	(0,8)	-99%
EBITDA	20,7	71,3	244%	(14,7)	62,8	-
Depreciation	(4,4)	(36,8)	741%	(9,2)	(72,2)	684%
EBIT	16,3	34,5	111%	(23,9)	(9,4)	-61%
EBIT margin	5,6%	9,9%		-5,3%	-1,8%
Financial results	8,0	(2,9)	-	5,7	(7,8)	-
EBT	24,3	31,5	30%	(18,3)	(17,2)	-6%
EBT margin	8,4%	9,1%		-4,0%	-3,3%
Income Tax	(7,3)	(9,4)	28%	4,5	4,1	-8%
Net earnings / (loss) after tax	17,0	22,2	30%	(13,8)	(13,0)	-5%

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Balance Sheet AEGEAN Group - Summary

(in EUR mil.)	December 18	June 19
Total fixed assets	255,1	614,8
Cash & equivalents	271,7	586,8
Financial assets available for sale	18,5	15,6
Other current assets	180,7	233,7
Total assets	725,9	1.450,8
Total equity	277,9	232,1
Finance lease liabilities	22,9	17,8
Operating lease liabilities	0,0	339,7
Loans	0,0	196,3
Other Liabilities	425,1	664,8
Total equity and liabilities	725,9	1.450,8

Cashflow AEGEAN Group - Summary

(in EUR mil.)	Jan - Jun 2018	Jan - Jun 2019
Net cash flows from operating activities	163.2	244.1
Net cash flows from investing activities	(42.6)	(15.6)
Net cash flows from financing activities	(40.3)	86.8
Net (decrease)/ increase in cash and cash equivalents	80.2	315.4
Cash at the beginning of the period	300.9	271.7
Foreign exchange difference impact in cash & cash equivalents	2.0	0.3
Cash at the end of the period	383.1	586.8

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