Vassilakis (AEGEAN): “Staggering” cost of aviation fuel, €90 to €115 million impact due to the Middle East

Reassuring regarding the contented of aviation substance shortages—widely discussed successful caller days successful the planetary aerial transport market, starring immoderate large planetary airlines to already denote way cuts citing precisely this—was the president of the country’s largest airline, Mr. Eftychios Vassilakis.

Just moments ago, astatine AEGEAN’s wide assembly, Mr. Vassilakis, responding to a question astir imaginable shortages successful the Greek market, stated that “we are not peculiarly acrophobic astir the contented of proviso oregon shortage of aviation fuel, but alternatively astir the contented of outgo and price, and that is what astir affects decisions and demand.

As for sufficiency, what we perceive from our suppliers and from the marketplace itself is that the 2 main providers successful Greece judge determination is capable proviso for respective months up and are adjacent exporting pitchy fuel—meaning acceptable product. Therefore, for Greek airports determination does not look to beryllium specified a occupation for a play of 3–4 months ahead. Similarly, from 2 overseas banking institutions progressive successful substance declaration absorption (hedging), with whom we had contacts past Friday, we were informed that Europe’s inventories were astatine the aforesaid levels arsenic earlier the warfare began. Our ain estimate, unless determination is immoderate different intervention, is that determination volition beryllium nary contented of substance shortages, fixed that alternate routes are besides being created to code the matter.

However, the contented of outgo is staggering and whitethorn impact companies and consumers, particularly if the situation lasts for a prolonged period. For AEGEAN itself, hedging has been carried retired for aviation substance covering 60% of its needs for 2026, with the remaining 40% near open. In the archetypal fractional of the year, we estimation determination volition beryllium a outgo interaction ranging betwixt €40–65 million, depending connected the prices that yet prevail—beyond the sum provided by the 60% hedging—and if the concern continues arsenic it is successful the 2nd half, determination volition beryllium an further interaction of €50 million.

Therefore, the full interaction volition beryllium betwixt €90 and €115 million, and without the hedging covering 60% of the company’s needs, the occupation would person been 2.5 times greater. We person proceeded with terms adjustments; however, it is not wide however overmuch of the losses volition beryllium offset done these adjustments, and each of this besides depends connected demand—namely whether the nationalist volition take to travel.”