Aegean Airlines S.A.

In the first half of 2025, Aegean reported revenue growth of 5% versus ASK growth of 4%, which it said led to a 1% increase in RASK. Management said passenger and capacity losses from the Middle East disruption totaled about 100,000 passengers on affected routes and about 35,000 connecting passengers. The company said cash rose by about EUR 60 million-EUR 70 million to EUR 840 million despite about EUR 70 million of dividends and about EUR 40 million of additional Airbus PDP payments; it also raised EUR 250 million via an early-July bond. Forward-looking, management expects Q3 ASK growth of around 3% and Q4 ASK growth of about 9%-10%, while saying the year should still show improvement versus 2024.

Chairman Eftichios Vassilakis framed the half-year as a strong outcome achieved under restrictions from grounded Pratt & Whitney GTF-powered aircraft and the temporary suspension of Middle East routes. He emphasized that network changes, stronger business class penetration, and more 321neo deliveries should support efficiency, and he reiterated cautious optimism for the full year. He also said the company is gradually expanding in longer-haul/larger-range flying and remains positive on the Volotea investment, though additional capital could be needed there.

Deputy CEO and CFO Michael Kouveliotis addressed the engine issue and said the number of grounded aircraft should stay between 12 and 14 from September 2025 through September/October 2026, then decline to about 7 by September 2027 and to 0 by March 2028. He said compensation from Pratt & Whitney barely covers lease cost and does not cover lost opportunity cost, higher maintenance, or weaker fuel efficiency, and that the problem also bloats the balance sheet with idle leases. On engine upgrades, he said the Advantage engine specs are promising and the first engines may be delivered in 2026, but it is still too early to have a firm view.

Analysts pressed management on competitive intensity, pricing softness, cost inflation and the return to Middle East routes. Management said international fares are somewhat lower but not alarmingly so, and that the company is back flying to Israel, Lebanon, Oman and Jordan, with capacity in those markets restored to original expectations. On costs, management said handling costs rose mainly because of higher labor costs and a new five-year contract, while higher unit costs in Q2 were amplified by underutilized aircraft and fixed staffing/infrastructure tied to the route suspensions; it said this should not repeat in Q3 and Q4.