Aegean H1 loss widens amid competitive pressures

Aegean Airlines has cited "substantial competitive capacity increases" after its operating loss widened 40% in H1, to E14.7m. However, the Greek carrier boosted revenue 1% to E456m, while total passenger numbers climbed 7% to 5.9m. International passenger numbers were up 8% to 3.3m. The number of those customers travelling through Athens airport rose 13%. Domestic passenger numbers meanwhile increased 5% to 2.7m. Load factors was up 2.5 percentage points at 81.7%. Aegean's CE Dimitris Gerogiannis states that the improve load factor and passenger volumes were a result of "our service efforts", a "conservative, focused" capacity expansion, and network optimisation achieved despite competitors' capacity increases. "Tourism demand for Greece continues to develop and is supportive but substantially seasonal," he adds. Gerogiannis highlights that the airline's outlook for Q3, which "substantially determines" full-year results, "remains positive". However, he acknowledges that rising fuel prices will continue to affect costs and be only partly mitigated by the airline's fuel-hedging policy.<br/>