Aegean Airlines: Demand for Greece holds

Research evidence excerpt

Aegean Airlines: Demand for Greece holds

ubside, we expect Aegeanto return to Tel Aviv, which is a high Price Performance Exchange-ATH

cost but high yield market for Aegean. Its introduction of mid haul flights has been delayed to 52 Week range EUR 15.36-10.80

2027, but we expect the A321LR aircraft, replacing the previously planned XLRs, to bring the new

mid haul product and services in 2027. We are also constructive about the development of

training and maintenance operations at Athens, though these two projects are clearly slow

burn. We also expect Aegean to benefit somewhat from Ryanair's winter capacity reductions in

Greece, even though Aegean sees a fair risk that the scale of capacity reductions made by

Ryanair may be smaller than the publicity Ryanair is creating about its capacity reductions in

the face of airport charges increases, as it seeks to increase local tourist industry pressure on Source: IDC

Link to Barclays Live for interactive chartingwhat are foreign-owned airports.

Fuel and hedging important factors: Like all airlines, the pathway of geopolitics will be European Transportation

important for Aegean. It is 60% hedged for kerosene through to the end of the year but only has Andrew Lobbenberg

7% coverage for the following year. Aegean is relatively confident about access to fuel supplies +44 (0)20 3555 0639

in Greece, which is well served by local refineries. Fuel availability outside of Greece is subject to andrew.lobbenberg@barclays.com

the same uncertainties felt by other airlines. Aegean faces both upside and downside risks from Barclays, UK

elevated fuel prices. We do not know the fuel hedging status of Aegean's most direct rival, Sky Rahul Singh

+91 (0)22 6175 2529

Barclays Capital Inc.