Air Europa will close the second half of 2022 with a historic profit of 160 million euros

Air Europa enters the last two months of the year with a notable financial and operational recovery. The company will close the second half of the year with positive results both in ticket sales and in the main operating indicators. This includes available offers, number of passengers and flight occupancy. The forecast is to close this second half of 2022 with revenue of more than 1,200 million euros and a profit of 160 million euros.

The projection is based on the results obtained in the third quarter of this year, which represented a profit of more than 87 million euros. The data indicates a growth of 237% compared to the same period of the previous year and 27% more than in 2019, still in the period before the pandemic. The outlook for the fourth quarter is equally positive, with the company estimated to earn four times more than in 2021.

Air Europa's strategy of optimizing management to expand the business allowed the airline to obtain good results in a short period. “The commitment to sustainability, a cause to which the company has been committed for years, has materialized in a reduction in fuel consumption, which has allowed us to unify the fleet and transport more passengers without the need to operate more flights. The positive results achieved are the result of the efforts of all employees, customers, suppliers and public bodies”, explains the CEO of Air Europa, Jesús Nuño de la Rosa.

Strategic role in the Madrid-Barajas hub

The good indicators obtained throughout the year were reflected both in the increase in seats and in the growth in the number of passengers and occupation. This is especially true of operations carried out from the strategic hub of the Madrid-Barajas Airport. At this location alone, the company is estimated to double expected revenue for the second half of the year compared to 2021.

The behavior of demand and the commercial strategies outlined have led the company's occupancy rate to be around 85% since July, 11% more than the second half of 2021 and 1% more than 2019.

Another positive data recorded by Air Europa is the growth in demand. Long-haul routes currently operate at 91% of their capacity, almost double what was registered in the same period of 2021. “The numbers indicate the key role of Air Europa in connectivity with America, in addition to demonstrating the recovery of the market and the important position of the company in the region", highlights the general director of Air Europa in Brazil, Gonzalo Romero.

services growth

Revenues corresponding to air cargo in the third quarter exceeded those of 2021 by more than 90%. The company attributes the increase to better management of the area and greater fleet capacity, which contributed to responding more adequately to the needs Marketplace logistics.

The results of extra or auxiliary services, such as the sale of seats, luggage and food, also exceeded the data for 2021, growing 78% between July and September. Another positive sign is that of Air Europa's Business class, which continues to be one of the company's quality brands, especially on long-haul routes, with occupancy levels of over 80%.

future projection

Although the market context calls for caution due to high inflation, the increase in fuel prices, the parity between the euro and the dollar and the conflict in Ukraine, Air Europa maintains a positive outlook for 2023. The company expects to continue assuming a commitment to the sustainability, efficiency and profitability of its operations.

Also in 2023, the company will complete its fleet unification plan, thanks to the strategic agreement recently signed with Boeing. This will mean the exclusive use of models from this manufacturer. The agreements with two of the most important lessors in the market, AerCap and Avolon, will allow the incorporation of the new Boeing 787 Dreamliner and 737 MAX. This latest model will begin to fly from 2024 and will make Air Europa the first Spanish company to operate the aircraft, considered the most advanced for short and medium-haul flights.

Air Europa also foresees the use of more efficient models, such as the Dreamliner, which consumes 20% less kerosene than other aircraft, as well as the application of techniques such as engine washing and the use of artificial intelligence to calculate ideal routes and loads. in the wineries, it will allow the reduction of the investment in fuel and, consequently, of the emissions.

“The company maintains its commitment to the environment and sustainability, investing in the reduction of paper in all operations, in the use of recyclable materials for the food service on board and for amenities, as well as in the application of techniques economy of circulation in its processes. We are also going to continue working on the progressive incorporation of more sustainable fuels to meet the decarbonisation objectives established for the sector”, says Gonzalo Romero.

The company also plans to increase frequencies on some of the most important routes and will strengthen operations in international destinations such as Asunción (Paraguay), Córdoba (Argentina), Medellín (Colombia) and Panama. Likewise, the company analyzes the opening of new destinations in Chile, Mexico, Costa Rica and Scandinavian countries. This year, Air Europa recovered routes and returned to 23 destinations in America and 33 in Spain and the rest of Europe, with five new Dreamliners and another six Boeing 737s.