According to the group’s official source, SATA Açores suffered losses of “4.7 million euros”. This result represents an improvement of 2.3 million euros compared to the same period in 2023, “above all, due to better operational results and the reduction in financing costs as a result of the early settlement of the bond loan of 60 million euros in September 2023”, says the company in a statement.
A press release states that in the first quarter, the SATA Group airlines, Sata Internacional – Azores Airlines (Azores Airlines) and SATA Air Açores – Sociedade Açoriana de Transportes Aéreos (SATA Air Açores) “continued the growth trajectory of passengers and revenue, despite the first quarter being always more challenging for airlines, having reached 447 thousand passengers transported (+21% compared to the first quarter of 2023)”.
The revenues of the two airlines reached 68.9 million euros, 24% more compared to the same period in 2023.
Costs also showed growth compared to the previous year, with a significant impact on the costs of irregularities and ACMIs (aircraft rental) due to adverse weather conditions and constraints related to maintenance and aircraft breakdowns, they say.
Azores Airlines – in the privatization process – transported 286 thousand passengers, an increase of 29%, and achieved total revenue of 47.1 million euros, which represents an increase of 31.5% compared to the same period last year, “despite, As a rule, the first quarter for airlines is the worst of the year (…), proving the trend of strong growth in the company’s activity, based on increased capacity on ‘core’ routes, more connections and the introduction of new routes “, it reads.
The number of flights carried out by Azores Airlines reached 2,095, representing an increase of 18% and 65% compared to 2023 and 2019, respectively.
The operating result before interest, taxes, depreciation and amortization (EBITDA) “evolved positively compared to 2023 and 2022, despite being negative by 8.5 million euros, contributing to this result the significant increase in costs with irregularities (motivated, largely due to adverse weather conditions, but also due to extremely restrictive Company Agreements) and ACMI”.
The company states that excluding the increase in these costs compared to 2023 (1.5 million euros), EBITDA would have amounted to negative seven million euros.
Operating costs rose 24.6% to 55.6 million euros, “strongly impacted by the growth in expenses with irregularities (+116.6%; +1.1 million euros), ACMIs (+112.3%; +0.4 million euros), commissions/GDS (+79%; 2.7 million euros), handling (+52.6%; 2.1 million euros) and maintenance (+45, 2%; 1.2 million euros)”, they explain.
Earnings before interest and taxes (EBIT) also show “a deterioration of 1.9 million euros”.
For its part, SATA Air Açores reached a total of 162 thousand passengers transported in the first quarter, 8.9% more compared to the same period last year, with total revenues growing 10.5% to 21.7 million euros.
EBITDA improved by 0.4 million euros, recording a value of -0.8 million euros.
The airline carried out 3,210 flights (+67 flights, +2.1% compared to 2023) and transported 162 thousand passengers, an increase of 8.9%.
Total revenue reached 21.7 million euros, 10.5% more compared to the same period last year.
EBIT improved by 0.5 million, reaching negative 3.4 million euros.
As for operational costs, “there was a more significant increase” in commercial costs (+27%), maintenance costs (+9%) and personnel costs (+8%).
It should be noted that the management of Grupo SATA recommended, last week, “not to proceed with the current privatization tender”, a position that the Civil Aviation Pilots’ Union (SPAC) welcomed on Monday.
Read Also: BE Açores criticizes lack of announcement of new administration for SATA
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Tags: SATA Azores Airlines worsens losses million #1st quarter
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