Positive cash flows and loss reduction during the second quarter of the year were recorded by AEGEAN, despite the limited flight activity, which remained at only 35% of the corresponding months in 2019. After 18 months, the company achieved positive cash flows, mainly due to reserves for the summer, reducing total net losses after taxes for the first half of the year to half compared to 2020 and specifically to 78.4 million euros.
The restrictive measures continued to affect activity and financial results until mid-May, as noted in the announcement of the second quarter financial results. However, the systematic effort to adjust and save costs, as well as the gradual resumption of operations at the end of the quarter contributed to the better picture presented by the company.
In particular, during the second quarter, the Group’s flight activity remained at low levels, ie only 35% of the corresponding activity of 2019 in kilometers flown, but with a significant increase compared to 2020. More specifically, AEGEAN made 15,000 flights with passenger traffic totalling 1.2 million passengers.
Turnover in the second quarter amounted to 108.6 million euros, showing an increase of 168.8% compared to 2020 with net losses after taxes being limited to 33.9 million euros from losses of 73.4 million in second quarter of 2020.
In the first half of the year the turnover recorded a decrease of 18.4% and amounted to 152.8 million euros, while the net losses after taxes amounted to 78.4 million euros, from 158.8 million euros in the first half of 2020 .
Cash flow from operating activities in the second quarter was positive for the first time since the crisis began in March 2020, mainly due to the start of pre-sale tickets for the summer. Cash and cash equivalents amounted to EUR 545.7 million on 30.06.2021, after the completion of the capital increase of EUR 60 million, but without having yet been increased by the disbursement of state aid which took place in early July (second semester of the year).
“Since the end of May, with the lifting of the restrictive measures, the air traffic has shown signs of recovery. We achieved positive cash flows for the quarter for the first time, after 18 months and laid the foundations for a more efficient summer closer to normal. The significant recovery in travel demand that occurred in the third quarter, especially for our country but also our activity from many bases abroad, translated to more passengers for July and August, as we already announced a few days ago, carrying more than 2.3 million passengers. We continue our investments in fleet, training and product, of course remaining aware of the difficulties that still exist “said Mr. Dimitris Gerogiannis, CEO of AEGEAN.