PRESS RELEASE First Half 2017 Financial Results Higher Load Factors and traffic lead to a significant rebound in second quarter profitability Kifissia, 12 September 2017 AEGEAN announces first half 2017 results with consolidated revenue at 450.7m, 12% higher compared to the respective period in and total passenger traffic rising by 6% to 5.6m passengers. During the second quarter of the year, revenue increased to 298.9m, 17% up compared to the respective quarter in, without any increase in overall flight activity. The improvement in load factors by 9 ppt to 81% from 72%, resulted to a rebound in profitability with pre-tax and after-tax earnings at 23.2m and 15.8m, respectively, compared to pre-tax and after-tax losses of 2.1m and 2.2m in the second quarter of. The qualitative as well as quantitative improvement stemmed from targeted network adjustments as well as investment in international markets that continues to yield positive results. Total passengers carried for the second quarter increased by 7% with international network continuing to be the main driver with 12% growth. More specifically, international traffic from Athens International Airport grew by 17% with AEGEAN being the largest contributor to market s growth. During the First Half of the year, net result after tax was a loss of 20m, improved by 3.7m compared to the First Half of. Operating cashflow strengthened substantially to 119.5m from 87m, resulting to cash and cash equivalents of 337.4m 1 at 30.06.2017, after the pay out of dividend for FY16 of 28.5m. Mr. Dimitris Gerogiannis, Managing Director, commented: We had a very strong start to the summer season. The maturing process of our international network, more effective capacity management and commercial policy as well a strong demand for Greece, have all contributed. Our performance in our Athens hub with 102 destinations continues to stand out, delivering 17% growth in international traffic. Given the traffic performance of July and August, we are highly confident for the performance of the third quarter of the year which substantially determines our full year results. Seasonality continues to be a key challenge with a weak first and last quarter of the year, especially as long as Greek customer demand remains low. 1 Including restricted cash ( 13.7m) and investments in bonds and securities ( 3.8m) 1
Consolidated Results million Quarter 2 Quarter 2017 % First Half First Half 2017 % Revenue 255.6 298.8 17% 403.5 450.7 12% EBITDAR 3 35.5 68.1 92% 41.3 59.7 44% EBITDA 4 3.7 33.6 814% (20.1) (10.5) -48% Pre-tax profit / (Losses) for the period (2.1) 23.2 (31.7) (26.7) -16% Net profit / (Losses) for the period (2.2) 15.8 (23.7) (20.0) -15% Passenger traffic (in,000) Quarter Quarter 2017 % First Half First Half 2017 % Domestic 1,514 1,541 2% 2,569 2,533-1% International 1,704 1,908 12% 2,660 3,022 14% Total 3,218 3,449 7% 5,229 5,555 6% Load Factor 5 72.1% 80.8% 8.7 71.0% 79.2% 8.2 Avg number of passengers per flight 102 118 15% 101 115 14% Financial statements and Key Performance Indicators are posted on the company s website https://en.about.aegeanair.com/investor-relations/financial-results Aegean Airlines will host a conference call to present and discuss First Half 2017 Financial Results on Tuesday September 12 th 2017. Details are available at https://en.about.aegeanair.com/investor-relations/announcements/announcements/ About AEGEAN ΑEGEAN and Olympic Air carried 12.5 million passengers in. 2017 network covers 145 destinations (33 domestic and 112 international) to 40 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 2017. 2 First quarter key financial and operating results were announced on May 23, 2017 3 EBITDAR: Earnings before interest, tax, depreciation, amortization & lease payments 4 EBITDA: Earnings before interest, tax, depreciation & amortization 5 Scheduled Revenue passenger km divided by Available Seat km 2
AEGEAN at a glance Consolidated results Apr - Apr - Ch Jan - Jan - Ch In millions Jun Jun 2017 In % Jun Jun 2017 In % Revenue 255.6 298.8 17% 403.5 450.7 12% EBITDAR 35.5 68.1 92% 41.3 59.7 44% EBITDA 3.7 33.6 814% (20.1) (10.5) -48% Pre-tax earnings / (Losses) for the period (2.1) 23.2 - (31.7) (26.7) -16% Net earnings / (Losses) for the period (2.2) 15.8 - (23.7) (20.0) -15% Total number of passengers (in thousands) 3,218 3,449 7% 5,229 5,555 6% Average number of passengers per flight 102 118 15% 101 115 14% Load factor - Scheduled services (RPK/ASK) 72.1% 80.8% 8.7pp 71.0% 79.2% 8.2pp Load factor - Scheduled services (Pax/AVS) 72.5% 80.7% 8.2pp 71.1% 78.9% 7.8pp Average sector length (km) 849 916 8% 814 890 9% RASK (Revenue per ASK, in cents) 5.8 6.6 15% 5.8 6.3 8% Yield (Revenue per RPK, in cents) 8.0 8.2 3% 8.2 7.9-3% CASK (EBT level, in cents) 5.8 6.1 5% 6.3 6.7 6% CASK (EBT level, in cents) - excl. fuel costs 4.6 4.9 6% 5.1 5.4 7% 3
Profit & Loss account Consolidated results April - April - Ch Jan - Jan - Ch In millions Jun Jun 2017 In % Jun Jun 2017 In % Revenue Scheduled Services 211.5 250.1 18% 338.3 376.0 11% Charter 13.0 18.8 44% 13.6 21.2 56% Other 31.1 29.9-4% 51.7 53.4 3% Total revenue 255.6 298.8 17% 403.5 450.7 12% Other operating income 3.4 1.9-44% 7.7 4.9-36% Employee benefits (29.9) (29.8) 0% (55.8) (56.6) 1% Aircraft fuel (53.7) (55.0) 2% (83.2) (88.8) 7% Aircraft maintenance (34.5) (40.3) 17% (51.5) (64.3) 25% Overflight expenses (19.1) (17.9) -6% (30.3) (29.0) -4% Ground handling expenses (17.8) (17.0) -4% (28.5) (28.3) -1% Airport charges (15.5) (17.2) 11% (26.5) (28.1) 6% Catering expenses (7.4) (8.2) 10% (11.8) (13.1) 11% Distribution expenses (22.3) (22.9) 3% (39.0) (42.5) 9% Marketing & advertising expenses (4.6) (4.0) -12% (7.8) (7.0) -10% Other operating expenses (18.7) (20.3) 8% (35.3) (38.2) 8% EBITDAR 35.5 68.1 92% 41.3 59.7 44% EBITDAR margin 13.9% 22.8% 10.2% 13.2% Aircraft leases (31.8) (34.5) 8% (61.4) (70.1) 14% EBITDA 3.7 33.6 814% (20.1) (10.5) -48% Depreciation (4.7) (4.7) 0% (8.7) (9.0) 4% EBIT (1.0) 28.9 - (28.8) (19.4) -33% EBIT margin -0.4% 9.7% -7.1% -4.3% Financial results (1.1) (5.7) 431% (2.9) (7.3) 147% EBT (2.1) 23.2 - (31.7) (26.7) -16% EBT margin -0.8% 7.8% -7.9% -5.9% Income Tax (0.1) (7.4) 8.0 6.7-17% Net earnings / (loss) after tax (2.2) 15.8 - (23.7) (20.0) -15% 4
Balance Sheet AEGEAN Group Summary In millions December 16 June 17 Total fixed assets 226.0 221.3 Cash & equivalents 248.5 333.6 Financial assets available for sale 4.7 3.8 Other current assets 171.6 217.5 Total assets 650.8 776.3 Total equity 244.3 154.1 Finance lease liabilities 46.7 38.3 Loans 0.0 0.0 Other Liabilities 359.8 583.9 Total equity and liabilities 650.8 776.3 Cashflow AEGEAN Group Summary In millions Jan Jun Jan Jun 2017 Net cash flows from operating activities 87.0 119.5 Net cash flows from investing activities 71.3 (0.5) Net cash flows from financing activities (52.0) (33.9) Net (decrease)/ increase in cash and cash equivalents 106.2 85.1 Cash at the beginning of the period 189.3 248.5 Cash at the end of the period 295.6 333.6 Operating figures (AEGEAN & Olympic Air) Capacity Apr Jun Apr Jun 2017 Ch In % Jan Jun Jan Jun 2017 ASKs (in millions) 4,491 4,532 1% 7,074 7,247 2% Total available seats (000) 4,449 4,305-3% 7,360 7,079-4% Total Block Hours 50,007 48,311-3% 80,050 78,532-2% Total Sectors Flown 31,476 29,315-7% 51,850 48,355-7% Average capacity per flight 141 147 4% 142 146 3% Average sector length (km) 849 916 8% 814 890 9% Passengers (000) By type of service : Schedule passengers 3,109 3,293 6% 5,116 5,389 5% Charter passengers 109 156 43% 113 166 47% By network : Domestic 1,514 1,541 2% 2,569 2,533-1% International 1,704 1,908 12% 2,660 3,022 14% Total number of passengers 3,218 3,449 7% 5,229 5,555 6% RPKs (in millions) 3,251 3,653 12% 5,040 5,731 14% Pax/flight 102 118 15% 101 115 14% Load factor - Scheduled (Pax/AVS) 72.5% 80.7% 8.2pp 71.1% 78.9% 7.8pp Load factor - Scheduled (RPK/ASK) 72.1% 80.8% 8.7pp 71.0% 79.2% 8.2pp Ch In % 5
Definitions EBITDA EBITDAR ASKs (in millions) Average capacity per flight Average sector length (km) CASK (EBITDAR level, in cents) CASK (EBITDAR level, in cents) - excl. fuel costs CASK (EBT level, in cents) CASK (EBT level, in cents) - excl. fuel costs Load Factor Pax/flight RASK (Revenue per ASK, in cents) Yield (Revenue per RPK, in cents) RPKs (in millions) Total available seats (000) Total Block Hours Total Sectors Flown Earnings before net interest and financial expenses, income taxes, depreciation and amortization Earnings before net interest and financial expenses, income taxes, depreciation and amortization and rental costs Available Seat Kilometers. Represents the number of seats available multiplied by the number of kilometers those seats were flown. The ratio divides total available seats flown by total sectors flown The ratio divides total available kilometers flown by total sectors flown The ratio divides operating expenses by the total number of ASKs. Total operating expenses exclude rentals and depreciation expenses. The ratio divides operating expenses excluding fuel cost by the total number of ASKs. Total operating expenses exclude rentals and depreciation expenses. The ratio divides total expenses by the total number of ASKs The ratio divides total expenses excluding fuel costs by the total number of ASKs Expressed as both RPK/ASK and Passengers/Available seats for scheduled flights The ratio divides total passengers carried by total sectors flown Revenue per Available Seat Kilometer, where revenue refers to revenue from scheduled, charter flights, ancillaries and other operating income Revenue per Revenue Passenger Kilometer, where revenue refers to revenue from scheduled, charter flights, ancillaries and other operating income Revenue Passenger Kilometers; the number of revenue passengers carried multiplied by the distance flown in kilometers. Represents the number of seats available flown A block hour is the time from the commencement of the movement of an aircraft from its parking position at the departure airport until its complete immobilization at the airport of destination Total number of point-to-point flights Detailed financial statements are available at www.aegeanair.com under the About Aegean / investor relations / Financial results section. 6