Azores Airlines registered an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of EUR 18.1 million in the 3rd quarter of 2022 and Revenues of EUR 90.2 million.
These facts compare very positively with the comparable quarter of 2019, the year before the pandemic, in which the company recorded EUR 7.3 million of EBITDA with total revenues of EUR 64.6 million.
From July to September, Azores Airlines transported 421 thousand passengers, 25.7% more than the 335 thousand in 2019.
The development of a commercial strategy of proximity with passengers and market agents and a solid operational performance was critical for the Summer 2022 results, allowing Azores Airlines to overcome severe operational troubles experienced by airlines during the Summer at several European and American airports.
Despite the challenging context, Azores Airlines managed to complete most of its operation, despite the additional pressure on punctuality that Summer 2022 summer caused, given the traffic growth that exceeded expectations.
However, results continued to be strongly impacted by increasing fuel prices and the devaluation of the Euro against the Dollar.
Up to September, the total fuel cost was EUR 57.4 million, up 91.4%, almost double of 2019, around EUR 27.5 million more. In the first nine months of 2022, fuel cost represents 36.5% of costs versus 18.8% registered in 2019. The summer quarter's net income settled at EUR 3.3 million.
Despite being less relevant at interim moments of the fiscal year, this metric still illustrates the evolution of the Azores Airlines operation.
Likewise, SATA Air Açores had an excellent performance in this period, marked by the increase in interisland mobility that required the phase-in of a new Dash Q400 aircraft to respond to the increasing demand.
In the summer quarter, SATA Air Açores recorded an EBITDA of EUR 5.8 million (compared to EUR 2.9 million in 2019) with Revenues of EUR 31.2 million (compared to EUR 22.5 million in 2019. This Summer, SATA Air Açores transported 336 thousand passengers, 19.0% more than the 283 thousand in 2019.
Although less exposed to the fuel problem, the cost of this item in the period still amounted to EUR 8.2 million, double if compared with EUR 4.1 million in 2019.
The summer quarter's net income settled at EUR 3.9 million. During the year, the main challenge is the operation's budget. The high fuel price, the continued weakening of the Euro, the absence of compensation in the Public Service Obligations for the Mainland, and the elevated costs of the historical debt continually affect the activity, absorbing a considerable part of the resources.
Even so, if traffic bookings have a consequent Revenue, the last quarter of the year for both airlines should result in the best year ever in these items and an improvement in Operating Results compared to 2019.
Despite adverse factors, SATA's recovery is in line with the outline of the Restructuring Plan approved by the European Commission.