“A lot closer to normality,” is how Aegean Airlines Chairman Eftichios Vassilakis described the June quarter for the airline, both in terms of demand and financials. Aegean reported Friday an $11m net profit for the April-to-June period, driven by a strong recovery in inbound tourism to its home country, Greece. The Athens-based carrier’s operating margin was 7.5%, only about a point lower than what Ryanair managed in Q2. Greece, by most measures, enjoyed one of Europe’s strongest tourism revivals this spring and summer. By June, according to the Airports Council International-Europe, Greece was one of just two European countries — the other being tiny Luxembourg — to have fully recovered to 2019 airport traffic levels. By contrast, June airport traffic in Portugal was down three percent from three years ago. Declines in other major countries were much steeper: Spain was down 11%, Italy 13%, France 18%, the UK 19%, and Germany 27%. The Greek recovery was strongest across the country’s island resorts. Statistics from Fraport, which operates 14 Greek airports outside of Athens, show passenger volumes in Corfu, for example, were up 13 percent year-to-date through August compared to 2019. Corfu’s August volumes alone were up 20%. The increase year-to-date for Chania, on the island of Crete, was 9%. And Rhodes was up 5%. By contrast, traffic still lags pre-crisis levels for Greece’s two largest business markets, namely Athens and Thessaloniki. Data from the Athens airport shows August traffic alone still down 6% from 2019. Fraport data show traffic down 8% at Thessaloniki in August.<br/>
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Polish flag-carrier LOT has disclosed that it made a net loss of zl1.33b ($281m) last year, a deterioration on the zl1.04b of 2020. The airline revealed the figure in annual activity documents newly filed with the Polish ministry of justice. It turned in total revenues last year amounting to zl3.25b, but total expenditure increased to zl4.59b. The full-year operating loss of zl1.3b was substantially greater than the previous figure of zl734m. “Gradually rebuilding the scale of operations [that existed] before the Covid-19 pandemic, with still-limited demand for passenger service and travel restrictions, led to higher operating costs,” the carrier states. It closed the year with a fleet of 59 aircraft on operating lease, 15 on finance lease, and four owned – three Embraer ERJ-145s and an E175. LOT says it has been preparing to simplify the fleet structure and further reduce its cost base as part of the effort to build up its operations, after a number of measures intended for 2020 – including new long-haul routes, and introduction of additional aircraft – had to be postponed. It says it has been having to cope this year with difficulties associated with European Union regulations on retaining slots, stating that these resulted in “less scope” for adjusting the scale of its operation. But LOT adds that the Ukrainian conflict presents an “even greater” challenge to the carrier, owing to the effects from fuel prices and exchange rates which “significantly” increase costs and “make it difficult to achieve profitability of [routes]”. “Owing to the proximity of Ukraine, the perception of Poland as a safe and attractive tourist destination has deteriorated,” it adds. It points out that the various airspace closures – which affect access to airspace in south-east Poland – extend flight times not only to Asian destinations but also closer points, such as cities in Turkey, Georgia, and Israel and even Greece and Bulgaria. <br/>