Greek carrier Aegean Airlines on Friday reported a 143 percent jump in first-half net profit on improved revenues and higher passenger traffic but declined to give a forecast.
Aegean said net profit rose to EUR13.4 million euros (USD$19.2 million) from EUR5.5 million in the first half of 2008. Sales grew 5 percent to EUR275.5 million. The carrier said lower oil prices and the benefits of a fleet renewal in terms of maintenance and fuel consumption were behind the rise in earnings.
"Conditions prevailing in the European airline sector continue to be challenging, characterised by demand weakness and strong yield reduction -- its effect being greater than the benefits derived from lower fuel costs," Managing Director Dimitris Gerogiannis said in a statement.
"Under the current market environment, accurate future forecasts of our financial performance are very difficult." Despite the economic downturn, Aegean, which competes with recently privatised Olympic Air, continued its route expansion strategy, adding six new destinations out of Athens -- Paris, Berlin, Brussels, Barcelona, Venice and Paphos in Cyprus. A new service to Istanbul will be launched shortly, it said.
Aegean carried 2.9 million passengers in the first half, an increase of 9 percent year-on-year. It carried 1.7 million passengers on domestic flights, 3 percent more compared to 2008. Passengers on international flights rose 20 percent to 1.3 million as the carrier gained market share.
The company operates a fleet of 31 aircraft with an average age of two years. Aegean services 48 routes to Greek and international destinations.
*Reuters