Corporate Presentation - Aegean Airlines€¦ · 28/09/2015 · Corporate Presentation September...
Transcript of Corporate Presentation - Aegean Airlines€¦ · 28/09/2015 · Corporate Presentation September...
Corporate Presentation
September 2015
Agenda
• Update on market environment 2
• Financial results and strategy 3
• Aegean Airlines – company overview 1
Quality & Award winning airline Weathering through the crisis and positioning for strong growth
3
• Full Service Carrier
– Focus on quality, efficiency, productivity
• 10.1m passengers in 2014
• Young fleet of 58 Aircraft
– 44 Airbus A320 family
– 14 Bombardier
• Star alliance member
• Award winning airline
– 6x skytrax best regional award
Traffic in RPKs (m)
1999
• Launched operations
1999-2001
• 2 local acquisitions
2002
• First international routes launched
2006-2007
• 27 Airbus order
2008
• Largest Greek airline
2010
• Star alliance member
2011
• Becoming single type jet operator
2013
• Acquisition of Olympic Air
2014
• 7 Airbus order
0
2.000
4.000
6.000
8.000
10.000
12.000
04 05 06 07 08 09 10 11 12 13 14 15
Using synergies to expand
4
6,1
8,8 10,1
11.5
2012 2013 2014 2015e
Passengers (m)
Domestic International
9.139 10.732
12.194
14.576
2012 2013 2014 2015e
ASKs (m)
30
45 50
58
2012 2013 2014 2015e
Fleet (A/C)
Turboprop
Airbus
65
104
119
134
2012 2013 2014 2015e
Network - Destinations
2x
2x
+60%
Growing from 3 to 9 A/C bases in Greece and Cyprus
5
ATHENS
THESSALONIKI
ATHENS
HERAKLION
HERAKLION RHODES
THESSALONIKI
CHANIA
CORFU
KALAMATA
KOS
2015 : 9 A/C bases
2009 : 3 A/C bases
LARNACA
134 destinations 100 international 34 domestic
Agenda
• Update on market environment 2
• Financial results and strategy 3
• Aegean Airlines – company overview 1
Tourist arrivals by air Attractive Athens potential
7
• 2010-2015 => +50% growth in tourist arrivals
Source: SETE, Aegean Airlines estimates
10,6
14,6 15,6
2010 2014 2015e
Tourist arrivals by air (m)
3,1 3,4 4,2
2010 2014 2015e
Athens (m)
7,5
11,2 11,4
2010 2014 2015e
Rest of Greece (m)
Driving total traffic growth despite 27%-28% GDP decline 2008-2015
8
2015 YTD trends
+24% Domestic
+20% International Athens
+2% International rest of GR
7 6 7 6
6 5,1 5,0
6,1
7,6
0
1
2
3
4
5
6
7
8
2007 2008 2009 2010 2011 2012 2013 2014 2015E
Domestic
11 11 10 10 9
8 8
10
11,7
0
2
4
6
8
10
12
14
2007 2008 2009 2010 2011 2012 2013 2014 2015E
International - Athens
18 17 16 16
18 18
20
23 23
0
5
10
15
20
25
2007 2008 2009 2010 2011 2012 2013 2014 2015E
International - rest of GR airports
35 34 33 32 33
32 33
39
43
2007 2008 2009 2010 2011 2012 2013 2014 2015E
Domestic International - Athens International - rest of GR airports
Source: AEGEAN estimates, YTD is Jan-Aug for Athens (AIA source) and Jan- July for rest of GR airports (HCAA source)
Total passengers (m)
Agenda
• Update on market environment 2
• Financial results and strategy 3
• Aegean Airlines – company overview 1
Ability to adjust and transform successfully
10
2004-2008
Gradual Growth
• Building presence / brand /product
• Heavy reliance on domestic network & local demand
• Mix of fleet
• No alliances
• Gradual growth of LCC
• State owned Olympic
2009-2012
Successful restructuring
•Extrovert/ incoming leisure focus
•Flexibility/outsourcing/ homogeneous jet fleet •Quality/customer excellence focus remains •Star Alliance entry
•GDP loss / Unemployment / Traffic demand sharply down
•Privatization of traditional competitor
•Rapid growth of LCC
2013-2015
Strong Growth
• Seek scale economies
• Acquisition of Olympic
• Network expansion / Build network flows, connectivity
• Defend market position and capture market opportunity
• Strong rebound in Athens traffic
• Competition intensifies
• Domestic network new competitor
11
•Helsinki
Finland
• Toulouse
• Deauville
• Metz
France
• Pisa
Italy
• Malta
Malta
• Amsterdam
Netherlands
• Alexandria
• Sharm El Sheikh
Egypt
• Paphos
Cyprus
• Riyadh
S. Arabia
• Tallinn
Estonia
• Oslo
Norway
• Tehran
Iran
• Yerevan
Armenia
• Dubrovnik
Croatia
2015 capacity plans: 15m total seats, 2m more vs 2014 Increasing frequencies on existing routes and new
international destinations launched
Additional capacity invested mainly on:
International network
Athens, Crete, Rhodes, Cyprus bases
Increasing frequencies on existing routes (opened 1-2 years ago)
Athens opportunity: Underserved in terms of destinations
12
Athens ATH
Airport Barcelona BCN
Rome FCO
Frankfurt FRA
Istanbul IST
Lisbon LIS
Vienna VIE
Zurich ZRH
Short haul (< 5 hours)
Long haul (>5 hours)
2014
89
83
6
2005
79
74
5
2014
192
165
27
2005
100
89
11
2014
180
135
45
2005
141
99
42
2014
291
166
125
2005
282
172
110
2014
220
164
56
2005
110
95
15
2014
123
93
30
2005
77
62
15
2014
176
152
24
2005
165
137
28
2014
176
133
43
2005
140
110
30
Number of international destinations served from airport
Source: OAG, Mckinsey study (October 2014)
Aegean strengthens Athens hub
13
2012 22 International
routes
2015 60 International
routes
2012 40 total routes
2015 94 total routes
*Number of routes from Athens
Delivers 3 x network flows in 7 years! HUB support & defense
14
3x
5
105
205
305
405
505
605
705
805
905
2008 2010 2013 2014 1H14 1H15
Aegean Transfer Pax Departing from Athens
+50%
Solid Jan-Jun 2015 operating performance
15
2,3 2,0
4,3
2,6 2,4
5,0
Domestic International Total passengers
1H14
1H15
+10% +20%
+15% Total passengers (m)
Strong passenger growth July & August 2015
16
1,2 1,3
2,5
1,3 1,6
3,0
Domestic International Total
Jul & Aug 2014
Jul & Aug 2015
+11%
+30%
+21%
• Aegean delivers sharp over performance in Athens with 35% in international + vs 18 % market
• And 30 % in Heraklion and 15% in Rhodes while total is 0 to -2 % for the 2 months
Out of which Athens +35%
Total passengers (m)
First Half 2015 results
17
In € millions Q1:14 Q1:15 Q2:14 Q2:15 H1:14 H1:15
Total revenue 133.9 138.1 3% 254.7 265.5 4% 388.6 403.6 4%
EBITDAR 14.0 6.7 -52% 58.7 60.2 2% 72.7 67.0 -8%
EBIT (9.7) (17.5) 81% 32.9 30.2 -8% 23.2 12.8 -45%
EBT (10.8) (12.3) 13% 32.9 31.2 -5% 22.0 18.9 -14%
Net earnings / (loss) after tax (8.4) (8.3) 0% 24.3 23.1 -5% 16.0 14.8 -8%
ASKs (in millions) 1,867 2,233 20% 3,363 3,963 18% 5,230 6,196 18%
Total available seats (000) 2,295 2,613 14% 3,526 4,122 17% 5,821 6,734 16%
Total Block Hours 24,491 27,428 12% 40,822 46,028 13% 65,313 73,457 12%
Total Sectors Flown 17,829 19,150 7% 27,040 30,416 12% 44,869 49,566 10%
Load factor - Scheduled (Pax/AVS) 71.0% 70.7% -0.3pp 77.1% 75.9% -1.1pp 74.6% 73.9% -0.7pp
Load factor - Scheduled (RPK/ASK) 73.0% 70.3% -2.7pp 78.1% 75.3% -2.8pp 76.1% 73.4% -2.7pp
RASK (Revenue per ASK, in € cents) 7.4 6.3 -15% 7.6 6.9 -9% 7.5 6.7 -11%
Yield (Revenue per RPK, in € cents) 10.1 9.0 -11% 9.8 9.2 -6% 9.9 9.1 -8%
CASK (EBT level, in € cents) 7.9 6.8 -14% 6.6 6.1 -7% 7.1 6.4 -10%
CASK (EBT level, in € cents) - excl. fuel costs 6.0 5.5 -9% 4.7 4.6 -3% 5.2 4.9 -5%
• Revenue at €404m (+4%) and net profit at €14.8m (-8%) • Strong cashflow generation leads to cash/equivalent at €320m* • Stronger dollar, higher air navigation charges in Greece as well as
lower fares, offset the benefit of lower fuel costs and unit cost reduction stemming from economies of scale
*including restricted cash and short and fixed income investments
Post Capital control trading update
18
• New bookings decline following referendum announcements (June 26) and capital controls enforcement (June 29) due to uncertainty
• Aegean addressed the drop but with some pax lost but mostly with a cost in yield
• Subsequent weeks see a recovery in bookings to last year levels • Even with the uncertainty the demand in terms of traffic numbers is
holding and Greece is still in demand • Winter months to be tougher given weaker economy (non tourism /
local demand reliance) • Capital controls operational / cashflow issues manageable • Political / economic stability remains key for long term planning • Aegean 1. substantial cash reserves and 2. flexibility to adjust network
/ size to cope with any possible downturn
Cash flow generation
19
227
207
122
10 20 14 35
10,4
71
Cash at thebeginning of the
year
operating cashflow before
working capital Δ
Total changes inworking capital
Interest & tax Capex Net pdps OA acquisition Capital return Other Cash and cashequivalents at theend of the period
Cashflow 2014 (EUR m)
208 301
9
125
4 8 24
47 5
Cash at thebeginning of the
year
operating cashflow before working
capital Δ
Total changes inworking capital
Interest & tax Capex Net pdps Dividend Net cash flows fromfinancing activities
Cash and cashequivalents at theend of the period
Cashflow 1H 2015 (EUR m)
Appendix
20
2015 Network
21
134 destinations 100 international 34 domestic
* ASKs: Available Seat Kilometers
Domestic Market
15% Cyprus 12%
Western Europe
51%
Middle East 8%
Balkans 2%
CEE 8%
Skandinavia 4%
ASKs* by region
Domestic Market
47%
Cyprus 10%
Western Europe
27%
Middle East 7% Balkans
3%
CEE 4%
Skandinavia 2%
Available seats by region
Fleet evolution
22
• June 2015 Fleet:
– Aegean takes delivery of 3 brand A320 aircraft –direct order with Airbus
– + 5 more Aircraft from lessors
• Focus on flexibility: adjust to needs & market / Lease expirations each year
• Only 4 A/C under finance leases => limits residual value balance sheet risk
Number of A/C & Total seats
4 6 6 6 6 6 6 6 6 6 6 4 4 6 8
13 12 14 14 10 4
3 11 21 22 29 30 31
36 44
14
14
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
0
10
20
30
40
50
60
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
RJ100 B737 A320 BOMBARDIER Seats
Note: Olympic Air fleet included as of 2014
Revenue Breakdown shift to international
23
2013: Acquisition of Olympic
44%
24% 28% 26%
56%
75% 66% 68%
2009 2012 2013 2015e
PSO Revenue Domestic Revenue International Revenue
Greek Tourism 2015 positive trends despite country challenges
24
• +7% YTD in 2015 (Jan – July)
• Strong arrivals growth from traditional western European source markets, US, Turkey
• Arrivals from Russia @ 1.25m in 2014 (-7%)=> significant weakness in 2015 – early indications point to decline in excess of 40%
source: Aegean estimates, Bank of Greece, SETE, AIA surveys, excludes 2m cruises traffic reported
by SETE
16,2 15,9 14,9 15,0
16,4 15,5
17,9
22,0
0,0
5,0
10,0
15,0
20,0
25,0
2007 2008 2009 2010 2011 2012 2013 2014
Total tourist arrivals* By Air By other modes of transport (mainly road)
Germany 15%
UK 15%
France 10%
Italy 6% Russia
9%
Rest of Europe
34%
Asia 3%
America 6%
Tourist arrivals by air By country of origin (2014)
Stagnant for almost 7 years
Shareholder Structure
25
*11.6% controlled through Autohellas
Listed on the Athens Exchange
35%
31%
34% Th. Vassilakis *
Other pre-IPO shareholders
Free Float
Profit & Loss
26 Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year
FY:13 FY:14
P&L In € millions Pro-forma Group Group
Scheduled Services 720.2 748.6 4% Charter 77.8 61.4 -21%
Other (cargo, service charge, executive aviation) 52.1 101.9 96% Total revenue 850.0 911.8 7% Other operating income 9.8 9.7 -1% Employee benefits (102.7) (100.5) -2% Aircraft fuel (223.5) (232.8) 4% Aircraft maintenance (71.3) (77.6) 9% Overflight expenses (46.2) (53.9) 17% Ground handling expenses (51.6) (51.5) 0% Airport charges (34.5) (37.4) 9% Catering expenses (18.6) (21.1) 13% Distribution expenses (58.0) (61.2) 6% Marketing and advertising expenses (8.4) (12.3) 46% Other operating expenses (63.3) (63.8) 1%
EBITDAR 181.8 209.5 15% EBITDAR margin 21.4% 23.0%
Aircraft leases (90.9) (90.7) 0% EBITDA 90.9 118.8 31%
Depreciation (14.1) (12.8) -9% EBIT 76.8 106.0 38% EBIT margin 9.0% 11.6%
Financial results (6.0) (11.3) 90% EBT 70.9 94.6 34% EBT margin 8.3% 10.4% Income Tax (18.4) (14.4) -22% Net earnings / (loss) after tax 52.5 80.2 53%
27
Key Operating Statistics
Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year
FY:13 FY:14 Change Pro-forma Group In %
RASK (Revenue per ASK, in € cents) 8.0 7.6 -6% Yield (Revenue per RPK, in € cents) 10.2 9.6 -6% CASK (EBITDAR level, in € cents) 6.3 5.8 -8%
CASK (EBITDAR level, in € cents) - excl. fuel costs 4.2 3.9 -7% CASK (EBT level, in € cents) 7.4 6.8 -8% CASK (EBT level, in € cents) - excl. fuel costs 5.3 4.9 -8% Capacity ASKs (in millions) 10,732 12,194 14% Total available seats (000) 11,879 13,088 10% Total Block Hours 135,801 148,062 9% Total Sectors Flown 93,601 99,486 6% Average capacity per flight 127 132 4% Average sector length (km) 732 767 5% Passengers (000) By type of service : Schedule passengers 8,169 9,574 17% Charter passengers 673 539 -20% By network : Domestic 4,549 5,240 15% International 4,294 4,873 13% Total number of passengers 8,843 10,113 14% RPKs (in millions) 8,440 9,584 14% Pax/flight 94 102 8% Load factor - Scheduled (Pax/AVS) 74.2% 77.3% 3.1pp Load factor - Scheduled (RPK/ASK) 78.3% 78.3% 0.0pp
Balance Sheet & Cash Flow
28
Balance Sheet
In € millions Dec 13 Dec 14
Total fixed assets 222.2 273.4
Cash & financial assets 244.2 218.4
Other current assets 95.0 135.5
Total assets 561.4 627.4
Total equity 212.9 216.5
Finance lease liabilities 59.0 58.5
Loans 0.0 0.0
Other Liabilities 289.4 352.5
Total equity and liabilities 561.4 627.4
Cashflow
In € millions Jan – Dec 2013 Jan – Dec 2014
Net cash flows from operating activities 104.8 111.5
Net cash flows from investing activities (0.3) (51.0)
Net cash flows from financing activities (26.9) (79.9)
Net (decrease)/ increase in cash and cash equivalents 77.6 (19.4)
Cash at the beginning of the period 149.3 226.9
Cash at the end of the period 226.9 207.5
Key financial metrics
29
EUR m FY:08 FY:09 FY:10 FY:11 FY:12
FY:13 Group
FY:14 Group
Period end cash & bonds 183 213 196 172 156 244 218
On balance sheet debt & financial leases 86 83 103 98 82 59 58
Net debt / (cash) -97 -130 -93 -73 -74 -185 -160
EUR m FY:08 FY:09 FY:10 FY:11 FY:12 FY:13
Group FY:14
Group
Sales 559 553 516 580 563 850 912
EBITDAR 102 96 76 62 73 182 209
EBITDAR margin 18% 17% 15% 11% 13% 21% 23%
EBITDA 57 32 1 -18 3 91 119
EBITDA margin 10% 6% 0% -3% 1% 11% 13%
Net earnings 29 23 -23 -27 -10 52 80
Net earnings margin 5% 4% -5% -5% -2% 6% 9%
EUR m FY:08 FY:09 FY:10 FY:11 FY:12 FY:13
Group FY:14
Group
Operating cash flow (before taxes & interest payments) 65 49 -5 4 21 108 132
Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year
Profit & Loss per quarter
30
In € millions Q1:14 Q1:15 Q2:14 Q2:15 H1:14 H1:15 Scheduled Services 114.0 114.3 0% 204.8 222.9 9% 318.9 337.2 6% Charter 0.8 1.0 22% 20.9 13.3 -37% 21.7 14.3 -34% Other 19.0 22.7 19% 29.0 29.4 2% 48.0 52.2 9% Total revenue 133.9 138.1 3% 254.7 265.5 4% 388.6 403.6 4% Other operating income 3.6 2.1 -42% 1.1 8.8 713% 4.7 10.9 130% Employee benefits (22.2) (24.3) 9% (24.2) (26.7) 10% (46.4) (51.0) 10% Aircraft fuel (37.1) (30.8) -17% (63.9) (61.5) -4% (101.0) (92.3) -9% Aircraft maintenance (12.1) (12.9) 6% (21.6) (25.8) 19% (33.7) (38.7) 15% Overflight expenses (9.0) (10.6) 18% (15.3) (18.3) 20% (24.3) (29.0) 19% Ground handling expenses (8.6) (10.2) 20% (14.0) (16.2) 16% (22.6) (26.5) 17% Airport charges (4.1) (9.4) 129% (11.8) (14.4) 22% (15.9) (23.8) 50% Catering expenses (3.5) (3.8) 11% (5.8) (6.6) 14% (9.3) (10.5) 13% Distribution expenses (14.0) (17.0) 21% (18.1) (22.7) 26% (32.1) (39.8) 24% Marketing and advertising expenses (2.2) (2.3) 4% (3.0) (4.8) 58% (5.2) (7.0) 35% Other operating expenses (10.9) (12.2) 12% (19.3) (16.9) -12% (30.2) (29.1) -4%
EBITDAR 14.0 6.7 -52% 58.7 60.2 2% 72.7 67.0 -8% EBITDAR margin 10.4% 4.9% 23.1% 22.7% 18.7% 16.6%
Aircraft leases (20.5) (20.9) 2% (22.9) (26.3) 15% (43.4) (47.2) 9% EBITDA (6.6) (14.2) 116% 35.9 33.9 -6% 29.3 19.7 -33%
Depreciation (3.1) (3.3) 7% (3.0) (3.6) 22% (6.1) (6.9) 14% EBIT (9.7) (17.5) 81% 32.9 30.2 -8% 23.2 12.8 -45% EBIT margin -7.2% -12.6% 12.9% 11.4% 6.0% 3.2%
Financial results (1.2) 5.2 - (0.0) 1.0 - (1.2) 6.1 - EBT (10.8) (12.3) 13% 32.9 31.2 -5% 22.0 18.9 -14% EBT margin -8.1% -8.9% 12.9% 11.8% 5.7% 4.7% Income Tax 2.5 4.0 59% (8.5) (8.1) -5% (6.0) (4.2) -31% Net earnings / (loss) after tax (8.4) (8.3) 0% 24.3 23.1 -5% 16.0 14.8 -8%
Key Quarterly Operating Statistics
31
Q1:14 Q1:15 Change Q2:14 Q2:15 Change H1:14 H1:15 Change
Group Group In % Group Group In % Group Group In %
RASK (Revenue per ASK, in € cents) 7.4 6.3 -15% 7.6 6.9 -9% 7.5 6.7 -11%
Yield (Revenue per RPK, in € cents) 10.1 9.0 -11% 9.8 9.2 -6% 9.9 9.1 -8%
CASK (EBITDAR level, in € cents) 6.6 6.0 -10% 5.9 5.4 -8% 6.1 5.6 -9%
CASK (EBITDAR level, in € cents) - excl. fuel costs 4.6 4.6 -1% 4.0 3.8 -3% 4.2 4.1 -2%
CASK (EBT level, in € cents) 7.9 6.8 -14% 6.6 6.1 -7% 7.1 6.4 -10%
CASK (EBT level, in € cents) - excl. fuel costs 6.0 5.5 -9% 4.7 4.6 -3% 5.2 4.9 -5%
Capacity
ASKs (in millions) 1,867 2,233 20% 3,363 3,963 18% 5,230 6,196 18.5%
Total available seats (000) 2,295 2,613 14% 3,526 4,122 17% 5,821 6,734 15.7%
Total Block Hours 24,491 27,428 12% 40,822 46,028 13% 65,313 73,457 12.5%
Total Sectors Flown 17,829 19,150 7% 27,040 30,416 12% 44,869 49,566 10.5%
Average capacity per flight 129 136 6% 130 136 4% 130 136 4.7%
Average sector length (km) 673 725 8% 780 793 2% 737 766 4.0%
Passengers (000)
By type of service :
Schedule passengers 1,625 1,844 13% 2,536 3,007 19% 4,161 4,850 17%
Charter passengers 2 3 7% 169 109 -35% 171 112 -35%
By network :
Domestic 930 995 7% 1,391 1,560 12% 2,321 2,555 10%
International 697 851 22% 1,314 1,556 18% 2,011 2,407 20%
Total number of passengers 1,628 1,846 13% 2,705 3,116 15% 4,333 4,962 15%
RPKs (in millions) 1,362 1,566 15% 2,622 2,985 14% 3,984 4,552 14%
Pax/flight 91 96 6% 100 102 2% 97 100 4%
Load factor - Scheduled (Pax/AVS) 71.0% 70.7% -0.3pp 77.1% 75.9% -1.1pp 74.6% 73.9% -0.7pp
Load factor - Scheduled (RPK/ASK) 73.0% 70.3% -2.7pp 78.1% 75.3% -2.8pp 76.1% 73.4% -2.7pp
Balance Sheet & Cashflow June 2015
32
Balance Sheet
In € millions Dec 13 Jun 15
Total fixed assets 273.4 251.0
Cash & financial assets 218.4 320.3
Other current assets 135.6 248.1
Total assets 627.4 819.3
Total equity 216.5 200.4
Finance lease liabilities 58.5 58.7
Loans 0.0 0.0
Other Liabilities 352.5 560.2
Total equity and liabilities 627.4 819.3
Cashflow
In € millions Jan – Jun 2014 Jan – Jun 2015
Net cash flows from operating activities 133.8 129.7
Net cash flows from investing activities 3.0 15.8
Net cash flows from financing activities (4.6) (51.8)
Net (decrease)/ increase in cash and cash equivalents 132.2 93.7
Cash at the beginning of the period 226.9 207.5
Cash at the end of the period 359.1 301.2
Aegean Share
33
• Listed in Athens Exchange • Bloomberg AEGN GA / Reuters AGNr.AT • IPO : July 2007 / €7.60 IPO price • Dividends / Returns:
– DPS FY08 €0.25 – DPS FY09 €0.13 – Capital return FY13 €1.00 – DPS FY14 €0.70
• Contact: [email protected] +30 210 626 1660
Disclaimer
34
Forward Looking Statements Except for historical information, the statements made or information contained in this presentation are forward-looking in nature. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. As such, they are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the Company’s control, which could cause the actual future performance to differ materially from those referenced, projected or contemplated herein by any forward-looking statement, including but not limited to the following: overall passenger traffic; the airline ticket pricing environment; the international expansion of our route network; seasonal fluctuations in passenger travel; aviation fuel prices; landing and navigation fee changes; changes in aircraft acquisition, leasing and other operating expenses; developments in government regulations and labour relations; the cost of our ground handling operations; the future development of AIA, the Greek regional airports and the international airports; foreign currency fluctuations, in particular between the euro and the U.S. dollar; the progress of our code-shared and interline arrangements; the availability of additional slots or landing rights at existing airports and the availability of new airports for expansion; interest rate fluctuations; extraordinary events, such as accidents, terrorist attacks or threats of terrorist attacks, natural disasters and outbreaks of contagious diseases; the rates of taxes payable; and general economic conditions in Greece and the European Union. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Therefore, past performance and/or forward-looking statements are not to be treated as guarantees of future performance. The forward-looking statements are made as of the date of this presentation, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.