Aegean Airlines, Greece's largest carrier, said 2009 net earnings fell 22 percent year-on-year to EUR€23 million euros (USD$31 million), hurt by a deteriorating Greek economy.
The Greek economy is expected to shrink for a second year in a row as it struggles through its first recession since 1993. Consumer spending is also under pressure as the government increases taxes to cope with the country's debt crisis.
Aegean, which has agreed to team up with recently privatised Olympic Air to create a carrier that will dominate the domestic market, said on Tuesday its sales rose 2 percent to EUR€623 million, mainly due to an expanded route network.
The carrier added several European destinations last year, including Paris, Berlin and Madrid.
However, weak consumer confidence and declining demand for airline services put pressure on average fares, particularly during the last four months of the year, it said. This were partly offset by cost benefits arising from its fleet renewal.
The carrier has taken delivery of 22 new Airbus A320/321 jets in recent years.
"Operating profitability was significantly reduced but remained in positive territory in a year when the majority of European airlines reported losses," Managing Director Dimitris Gerogiannis said in a statement.
Aegean said it carried 6.6 million passengers last year, 10 percent more than in 2008. Passenger traffic on domestic flights grew 2 percent while on international routes it rose 22 percent.
Aegean, with a fleet of 32 aircraft, is in the process of joining Star Alliance. Its planned merger with Olympic Air is expected to be completed in 2011.
*Reuters