WOOD Flash – Aegean Airlines: 4Q19 – ends the year on a high note; strong liquidity should see it through
Aegean reported its full-year results yesterday (17 March). During the conference call, Mr Vassilakis, the chairman and the controlling shareholder of Aegean, highlighted that the company is entering this difficult period with a strong liquidity profile, following an excellent 2019 and a very good first two months of 2020. He pointed out that Aegean has a much better cash buffer than a number of European carriers. According to Mr. Vassilakis, even fixed costs can be addressed if the crisis lasts a long time. However, its employees are the company’s most important asset, and he sees mass redundancies as a last resort. He estimated that around 70-73% of the costs are variable, and the running fixed costs could range around EUR 32-34m per month, should the fleet be grounded. With c.EUR 500m of liquidity, we believe Aegean should be able to navigate the current environment, even if the traffic remains disrupted well into the crucial summer season. The company plans to hold a special call to discuss the current situation in three-to-four weeks.Aegean Airlines is an airline carrier based in Greece. Co. is engaged in aviation transportation, providing services that concern the transportation of passengers and commodities in the sector of public aviation transportation inside and outside Greece, conducting scheduled and unscheduled flights. Co. provides full service, premium quality short and medium haul services. Co. maintains a network of 145 destinations, 111 international in 45 countries and 34 domestic destinations. Co. is a member of global airline network, the Star Alliance network.
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