Aegean Airlines Poised for Another Record Year in 2025

The financial results from January-February, announced just before the full 2024 economic outcomes, are seen as promising indicators for this year. Analysts at Euroxx Securities (Alex Boulogouris and Fani Tzioukala) predict a year of high single-digit profit growth and further strengthening of Aegean’s already robust financial position. Despite traditionally weaker performance in the first two months, Aegean reported a 13% increase in international traffic and 3% domestically, with load factors remaining stable compared to the same period in 2024. The difference is attributed to an increased number of available seats and network expansion. Management has significantly boosted presence in the Turkish market by introducing direct flights from Heraklion, Mykonos, Rhodes, and Santorini to Istanbul, added Las Palmas (Gran Canaria) in February, launched its first route to Erbil (Kurdish region of Iraq), and initiated service to Baku (Azerbaijan). Additionally, Aegean expands its largest-ever destination network from ‘Eleftherios Venizelos’ and ‘Macedonia’ airports, as well as five other international Greek airports, while enhancing Cyprus as a hub. Activities are also strengthened in Iberian Peninsula, Balkans (Albania, Bulgaria), Egypt, Italy (Rome, Bologna), Switzerland (Zurich), and significant investments continue in Saudi Arabia, UAE, and Morocco. Domestically, efforts focus on adding direct connections with seven new routes, including four based in Heraklion to Rhodes, Naxos, Corfu, and Kos, two additional routes from Rhodes to Chania and Santorini, and Thessaloniki gaining a direct link to Syros. For stock analysts, the key strengths lie in adding more aircraft, further optimizing operational costs, and traditional careful management that proved effective even during the Covid-induced meltdown. In 2024, Aegean had up to 10 planes (17% of jets) grounded due to necessary early engine checks on Pratt & Whitney GTF engines. Incorporating more state-of-the-art aircraft contributed to reducing fuel costs, with prospects improving with the acquisition of upcoming A320neos. From these two factors, analysts foresee additional gains reflected in Q4 2024 final results, expecting higher compensations from Pratt & Whitney and lower fuel costs. Analysts Alex Boulogouris and Fani Tzioukala estimate 2025 will be a stable year with high single-digit profit growth and further increase in the already strong cash position. Already, unlike 2024, the start is positive with an 8.05% rise since the beginning of the year and 4.15% in one month, reflecting gradual position-taking by ‘strong hands’, with valuation reaching one billion euros.