After a third quarter with results that they have defined as excellent, Air Europa projects to close the second half of 2022 with revenues of over 1.2 billion euros and an EBITDA (earnings before interest, taxes, depreciation and amortization) of 160 million euros, which allows it to «enjoy solid liquidity» based on its strategy of «optimizing management to expand the business» and, in addition, to advance in the modernization of its fleet and the expansion of its capacity, both in the current network and in new destinations.
«The commitment to sustainability, to which the company has been committed for years, is materialized in an improvement in consumption and emissions through a fleet unification that allows us to move more passengers without the need to operate more flights,» said Jesús Nuño de la Rosa, CEO of Air Europa.
«The solid results achieved, with which we continue to meet our commitments, have been possible thanks to the involvement and effort of the entire airline team and the trust of customers, suppliers and public bodies,» he added.
Since July Air Europa has an average occupancy rate of 85%, 11 percentage points higher than in the second half of 2021 and even one point higher than in 2019, prior to the outbreak of the pandemic. Long-haul routes surpass that mark by already operating at 91% capacity, and within that segment, Business Class already has occupancy above 80%.
The results of efficiency can be seen in issues such as, although they will operate 6% fewer flights from their hub in Madrid, the number of passengers during the second half of the year will be more than five million, compared to 2.8 million in 2021 and 4.8 million in 2019.
Although they clarify that the current market context «invites caution in view of the evolution of inflation, the increase in fuel prices, the euro-dollar parity and the conflict in Ukraine», Air Europa maintains its positive outlook by betting in the long term on «sustainability, efficiency and profitability of operations».
Regarding the fleet, they will complete the unification plan using only Boeing aircraft by adding new 787 and 737 MAX, the latter to be incorporated from 2024.
New destinations and increased frequencies
After making progress in the recovery of its pre-pandemic network, the airline plans to increase frequencies to long-haul destinations such as Asunción (Paraguay) and Córdoba (Argentina), Panama and Medellín (Colombia), with the aim of having a daily flight on each link.
Its network in the Americas currently covers Buenos Aires, Montevideo, Asunción, Córdoba (Argentina), Bogotá, Caracas, Cancún, São Paulo, Guayaquil, Havana, New York-JFK, Lima, Medellín, Miami, Panama, Punta Cana, San Pedro Sula, Santo Domingo, Salvador, Quito and Santa Cruz de la Sierra.
In November, they will have an offer of 145,166 seats on 459 flights from Madrid to the Americas according to data obtained by Aviacionline through Cirium, figures that represent a recovery of 95% and 93% respectively compared to the same month of 2019.
But they also highlighted that they are analyzing the opening of new destinations in Chile, Mexico, Costa Rica and Scandinavian countries.
Chile
The company used to operate in Santiago (SCL) with three weekly flights, in A330-200 aircraft, prior stopover in Salvador (SSA), Brazil, between 2014 and 2015, as part of an agreement with the state of Bahia, but the link did not prosper.
Currently the market between Madrid (MAD) and Santiago (SCL) is operated by Iberia and LATAM with one daily flight. Between January and September 2022, 306,126 passengers were mobilized, being the fifth most important route between South America and Spain, according to AENA Estadísticas.
Costa Rica
It is the most important destination between Central America and Spain in terms of passenger movement. Between January and September 2022, 175,930 passengers were mobilized with flights operated by Iberojet and Iberia in A330-200 and A350-900 aircraft.
Mexico
Mexico is the second most important destination from Madrid to Latin America and the Caribbean in terms of passenger movement, after handling 655,355 passengers in the first nine months of 2022. It is currently operated by Iberia (3 daily flights) and Aeromexico (2 daily flights).
Air Europa used to operate for six months in 2011 to Mexico City, but in case of returning it will have to fly from Santa Lucia International Airport, known as AIFA, given the saturation context of the Metropolitan Airport of Mexico City (MEX/AICM).
Scandinavia
The company operates in Copenhagen (CPH), Denmark, and Stockholm (ARN), Sweden, during the summer season. Air Europa’s intention is to transform these flights into scheduled flights and possibly add Norway to the list. Scandinavian tourists choose Spain for getaways
So far this year, Scandinavian countries moved 6,230,782 passengers with Denmark in first place with 2,252,428 travelers.
