Azores Airlines recorded, in the first quarter of 2024, a negative net result of 25.6 million euros, a value that reflects a deterioration of 2.9 million euros compared to the same period last year, despite the airline having presented a “trajectory of sustainable and consistent growth” with that recorded in 2023.
In a statement released this Tuesday, April 30, Grupo SATA indicates that Azores Airlines, the airline of the Azorean aviation group that carries out international flights, recorded revenue of 47.1 million euros in the first quarter of 2024, which represents a growth of 31.5% (+11.3 million euros), compared to the same period last year, and 115.5% (+25.3 million euros) when compared to the pre-pandemic period (2019).
These numbers, adds the group, prove “the trend of strong growth in the company’s activity, based on the increase in capacity on routes coremore connections and the introduction of new routes”.
The evolution of revenue, also read in the released statement, was supported by the number of passengers transported in the first three months of 2024, when Azores Airlines transported 286 thousand passengers, an increase of 29.1% or 64 thousand passengers compared to the first quarter of 2023, as well as the improvement in yield.
The number of flights carried out reached 2,095, also representing an increase compared to 2023 and 2019, of +18% and +65%, respectively, while the load factor improved by 7.7 pp compared to 2023, reaching 78 .5% in the first quarter of 2024.
Grupo SATA also highlights the fact that Azores Airlines received, in the first quarter of 2024, two new A320 NEO aircraft, which are part of the airline’s fleet renewal plan and contribute to offering a better experience to passengers.
However, alongside revenues, operating costs also increased by 24.6%, totaling 55.6 million euros, which represents an increase of 11 million euros compared to the same period last year.
Grupo SATA says that the increase in operating costs was due to the growth in spending on irregularities, which rose by 116.6% or 1.1 million euros, as well as ACMIs, which increased by 112.3% or 0.4 millions of euros; commissions/GDS, which registered an increase of 79% or 2.7 million euros; handling, which also increased by 52.6% or 2.1 million euros; and also maintenance, whose costs rose by 45.2% or 1.2 million euros.
“The increase in costs greater than the increase in revenue impacted EBITDA, which amounted to -8.5 million euros and which compares with -8.8 million euros in the first quarter of 2023”, explains the Azorean aviation group.
EBIT registered a deterioration of 1.9 million euros when compared to the first quarter of 2023, which was impacted not only by EBITDA, but also by the “increase in depreciation related to aircraft caused by the increase of two aircraft when compared with 2023 and an increase in spending on structural maintenance”.
SATA Air Açores also maintains growth trend
Like Azores Airlines, SATA Air Açores, the airline that operates flights between the Azorean islands, showed, in the first quarter of the year, a trend of growth and recovery of results.
However, the SATA Group explains that this airline also registered “strong pressure on costs, particularly with aircraft maintenance, which will be reflected in the accounts throughout 2024”.
Until March, SATA Air Açores carried out 3,210 flights, which represents an increase of 67 flights or more 2.1% compared to 2023, while the number of passengers transported was 162 thousand, representing an “increase of 8.9% compared to compared to the same period last year, which translates into an increase in load factor from 6 pp to 74.9%”.
SATA Air Açores’ total revenues reached 21.7 million euros, an improvement of 10.5% compared to the same period last year or 2.1 million euros more.
EBITDA reached a negative value of 0.8 million euros in the first quarter of the year, which represents an improvement of 0.4 million euros compared to the same period in 2023, while EBIT, despite being negative, also presented a improvement of 0.5 million euros, reaching a negative value of 3.4 million euros.
And also at SATA Air Açores, costs increased, with commercial costs rising 27%, while maintenance costs grew 9% and personnel costs increased 8%.
“It should be noted that SATA Air Açores is carrying out a series of structural maintenance and engine repairs on the aircraft in its fleet, for an estimated amount of around 25 million euros in 2024, the impact of which on depreciation will be accentuated throughout 2024 and following years, however, the financial impact and capital requirement are immediate. To date, around 4.5 million euros have been paid for this maintenance”, says the Azorean group.
At SATA Air Açores, net profit improved by 2.3 million euros in the first quarter of 2024 compared to the same period last year, having been “impacted, above all, by better operational results and the reduction in financing costs as a result of the early settlement of the loan bond of 60 million euros in September 2023”.
