SATA GROUP OBTAINS POSITIVE EBITDA OF 40.4 MILLION EUROS AND AMORTIZES BANK DEBT
- In the nine months of 2023, SATA Group registered a positive consolidated EBITDA of 40.4 million euros, which compares with an EBITDA of 13.2 million euros in the same period last year.
- Consistent growth in SATA Group's consolidated revenues over the nine months of 2023 reached 300.5 million euros, which represents an increase of around 75 million euros (+33.2%) when compared to the same period of 2022.
- 1.9 million passengers were carried by SATA Group in the nine months of 2023, corresponding to +410 thousand passengers (+27%) when compared to the same period last year. Compared to the pre-pandemic period, in the nine months of 2019, +532 thousand passengers were carried (+39%). Available capacity increased by 47% compared to the nine months of 2022 and 30% compared to the nine months of 2019.
- SATA Group's Net Profit registered an improvement of 28.5 million euros compared to the same period last year.
- Amortization of SATA Group’s debt, worth 60 million euros, will allow savings of around 18 million euros by 2026.
SATA INTERNACIONAL – AZORES AIRLINES
AZORES AIRLINES REACHES 116 MILLION EUROS IN REVENUE AND EXCEEDS 100 MILLION EUROS IN A QUARTER FOR THE FIRST TIME. FOR THE SECOND CONSECUTIVE QUARTER ACHIEVED A POSITIVE NET RESULT.
3rd Trimester of 2023
In the 3rd Quarter of 2023, Azores Airlines maintained the growth trend of its operational activity, consistent with the results presented in the previous quarter.
- Operating revenues increased by 28.3% in the 3rd Quarter of 2023 (+25.5 million euros) compared to the 3rd Quarter of 2022, reaching a total of 115.8 million euros. Compared to the 3rd Quarter of 2019, the increase was 79.3%, corresponding to +51.2 million euros. In the nine months of 2023, it reached 226.8 million euros (+66.3 million euros when compared to the nine months of 2022).
- Net Profit in the 3rd Quarter of 2023 was positive, 10.7 million euros, compared to 3.3 million euros in the 3rd Quarter of 2022 and negative 2.1 million euros recorded in the 3rd Quarter of 2019.
- In the 3rd Quarter of 2023, 534 thousand passengers were carried, representing an increase of 27% compared to the same period last year and 59% when compared to the 3rd Quarter of 2019. The load factor was 86.9%, increasing 3.6 p.p compared to the same period last year and 5.2 p.p when compared to the 3rd Quarter of 2019. In the total of the nine months of 2023, 1.138 thousand passengers were carried, +37% compared to the nine months of 2022, with a load factor of 83.2% (+8. 2 p.p. vs. nine months in 2022)
- Operating Result before interest, taxes, depreciation, and amortization (EBITDA) was 21.8 million euros, which compares with 18.1 million euros (+20.3%) in the 3rd Quarter of 2022. Compared to the 3rd Quarter of 2019 the variation was +14.4 million euros. Please note that in the nine months of 2023, EBITDA was 24.6 million euros, +21.4 million euros when compared to the nine months of 2022.
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Azores Airlines registers a consistent revenue growth trend, reaching 115.8 million euros in the 3rd Quarter of 2023, 25.5 million euros more when compared to the 3rd Quarter of 2022, and 51.2 million euros more when compared to the 3rd Quarter of 2019, pre-pandemic period.
Earnings before interest and taxes (EBIT) exceeded the best expectations, being positive in the 3rd quarter of 2023 and for the second consecutive quarter, at 12.4 million euros.
“This growth was due to a combined set of operational and commercial initiatives. We continued to invest in the consolidation of North American routes and explored new markets, such as Ponta Delgada-Bilbao, which began on July 1st, 2023”, comments Teresa Gonçalves, CEO of the SATA Group.
“The increase in traffic, compared to the Third Quarter of 2022, was largely driven by the increase in connectivity within the network, greater awareness of Azores Airlines in foreign markets, and strong demand from passengers in North America” adds Teresa Gonçalves.
In the first nine months of 2023, revenue reached 226.8 million euros, significantly above (+41.3%) the same period last year, when it totaled 160.5 million euros. Compared to the pre-pandemic period, the increase is even more significant, +75.4%, +97.5 million euros, which reinforces the growth of the company's activity in recent years.
The significant increase in passengers transported in the 3rd Quarter of 2023 contributed to these results, around 534 thousand, +27% when compared to the 3rd Quarter of 2022 and +59% compared to the 3rd Quarter of 2019. The capacity measured in available seats per kilometer (ASK) increased by 29% compared to the 3rd Quarter of 2022 (and +51% versus the 3rd Quarter of 2019). The average flight occupancy rate (load factor) was 86.9% in the 3rd Quarter of 2023, +3.6 p.p. compared to the same period last year. Please note that the load factor on routes to and from North America was around 86.7% during the quarter, in line with the 3rd Quarter of 2022. Routes to/from Europe had a very significant performance, reaching a load factor of 87.8% in the quarter (vs. 73.2% in the 3rd Quarter of 2022).
Azores Airlines surpassed the 1 million passenger barrier in September, around three months before 2022, totaling, at the end of the 3rd Quarter of 2023, around 1.1 million passengers carried since the beginning of the year. Compared to the previous year, there was an increase of 37% (+308 thousand passengers), and when compared to the nine months of 2019, an increase of 51%, +383 thousand passengers.
It should be noted that this quarter, given the peak in demand that connections to the Azores Archipelago registered, especially on routes between the Azores and the Mainland, Azores Airlines moved forward with the reinforcement of its operation, increasing capacity to provide approximately 670 extra seats.
The number of flights carried out extents to 7,540, also representing an increase compared to the same period in 2022 and 2019, +18% and +37%, respectively. Overall, the load factor in the nine months of 2023 is 83.2%, corresponding to a significant increase compared to 2022, +8.2 p.p. (+3.6 p.p. vs 2019).
Operating costs reached a total of 94 million euros in the 3rd Quarter of 2023, +30% compared to the same period last year. This variation essentially results from the increase in traffic operating costs (+9.4 million euros, +51%), reflecting the increase in the airline's activity and the general increase in service prices. Additionally, and similarly to what occurred in the 2nd Quarter of 2023, the 3rd Quarter of 2023 was marked by a set of irregularities caused by meteorological issues, delays in the delivery of aircraft that were undergoing maintenance and other problems exogenous to the company. Azores Airlines turned to aircraft rental under the ACMI regime (aircraft rental, crew, maintenance and insurance) to overcome gaps in the fleet and guarantee passenger service. Costs for providing external services increased by 21.1% compared to the 3rd Quarter of 2022 (+12.0 million euros). Personnel costs increased by 13.6% in the 3rd Quarter of 2023 compared to the same period last year, driven by the increase in operational activity and the continued impact of the replacement of salary cuts and career progressions. Despite these increases, they represent 12% of total revenue (an improvement compared to 15% in 2019).
Accumulated operating costs in the nine months of 2023 extent to 202.2 million euros, +28.6% compared to the same period last year, representing 89% of total revenue compared to the 98% it represented in the same period in 2022.
Operating income before interest, taxes, depreciation, and amortization (EBITDA) for the 3rd Quarter of 2023 amounted to 21.8 million euros, which compares to 18.1 million euros in the 3rd Quarter of 2022 and 7.5 million euros in the 3rd Quarter of 2019.
Please note that the largest percentage increase in revenue compared to operating costs resulted in an accumulated EBITDA in September of 24.6 million euros, which compares with 3.2 million euros recorded in the same period of 2022 and with the 0.6 million of euros verified in September 2019.
SATA AIR AÇORES REGISTERS ACCUMULATED REVENUES OF 86.3 MILLION EUROS, +18.7% COMPARED TO THE YEAR-ON-YEAR PERIOD. GROWTH POWERED BY THE INCREASE IN PASSENGERS CARRIED, +30 THOUSAND COMPARED TO THE PREVIOUS PERIOD.
EARLY REPAYMENT OF A 60 MILLION EURO LOAN RELIEVES PRESSURE ON INTEREST PAYMENT AND BALANCE SHEET.
3rd Trimester of 2023
- Revenue increased in the 3rd Quarter of 2023 by 31.3% (+9.8 million euros) compared to the 3rd Quarter of 2022, reaching a total of 40.9 million euros. When compared to the 3rd Quarter of 2019, the increase was 18.4 million euros (+82.1%). In the nine months of 2023, SATA Air Açores achieved 86.3 million euros in revenue (+13.6 million euros compared to the same period last year).
- Operating income before interest, taxes, depreciation, and amortization (EBITDA) was 12.3 million euros in the 3rd Quarter, which compares with 5.8 million euros in the 3rd Quarter of 2022. Compared to the 3rd Quarter of 2019, the variation was + 9.4 million euros.
- In the 3rd Quarter of 2023, SATA Air Açores continued the growth trend in its operational activity, having transported 366 thousand passengers, +9% compared to the same period last year and +30% when compared to the 3rd Quarter of 2019. 6,866 flights were carried out, +5% compared to the 3rd Quarter of 2022. Compared to the pre-pandemic period, the variation was +28%. The load factor was 79.3% (vs. 75.7% in the 3rd Quarter of 2022 and 81.3% in the 3rd Quarter of 2019). In the total of the nine months of 2023, 770 thousand passengers were transported, +15.3% vs. the nine months of 2022 with a load factor of 74.5% (+2.5 p.p. vs. the nine months of 2022).
- Earnings before interest and taxes (EBIT) for the 3rd Quarter of 2023 reached 9.1 million euros, +5.6 million compared to the 3rd Quarter of 2022. Compared to the 3rd Quarter of 2019, the increase was more significant, totaling 9.2 million euros. It should be noted that, in the nine months of 2023, EBIT was 3.7 million Euros, in line with the same period of the previous year.
- The Net Result in the 3rd Quarter of 2023 was positive at 5.8 million euros, which compares with 3.9 million in the 3rd Quarter of 2022 and a negative 900 thousand euros in the 3rd Quarter of 2019.
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SATA Air Açores achieved revenue in the 3rd Quarter of 2023 of 40.9 million euros, +9.8 million euros, which represents a growth of 31.3% compared to the same quarter of the previous year and +18.4 million euros when compared to the 3rd Quarter of 2019, pre-pandemic period. This increase reflects a growth in demand, which has been met with the offer of more flights and the entry into service of an additional aircraft in August 2022, although the revenue generated by it has not yet been optimized.
The Net Result in the 3rd Quarter of 2023 was positive at 5.8 million euros, +1.9 million euros compared to the 3rd Quarter of 2022 (+47.5%) and +6.7 million euros compared to the 3rd Quarter of 2019.
In the nine months of 2023, SATA Air Açores' revenue reached 86.3 million euros, +13.6 million euros (+18.7%) compared to the same period last year. Compared to the pre-pandemic period, the increase is more significant at +55.7%, which translates into an increase of 30.9 million euros.
The increase in the number of flights and passengers transported contributed to these results, +10% and +15%, respectively, until September 2023, compared to the same period last year (representing +1,351 flights and +102.1 thousand passengers). Compared to the nine months of 2019, 2,921 more flights were carried out (+24%), resulting in +149.4 thousand passengers (+24%). Capacity measured in available seats per kilometer (ASK) increased by +12% in the nine months of 2023 compared to the same period last year. The average flight occupancy rate (load factor) increased when compared to the same period last year, despite the significant increase in capacity with the introduction of another aircraft, reaching 74.5% until September 2023, +2.5 p.p. compared to the same period in 2022, registering a reduction compared to the nine months of 2019 (-3.6 p.p.).
Operating costs reached, in the 3rd Quarter of 2023, a total of 28.6 million euros, +13% compared to the same period last year. The growth in costs is related, for the most part, to the increase in personnel expenses, +24.1% (+2.8 million euros), driven mainly by the continued impact caused by the replacement of salary cuts during the pandemic period, due to the career progression of salary increases agreed with the different union structures, and due to the increase in maintenance expenses.
Accumulated operating costs in the nine months of 2023 sum 74 million euros, +19.2% compared to the same period last year and slightly above the revenue growth for the same period. Operating costs represent 86% of total revenue (vs. 85% in the same period in 2022).
The Operating Result before interest, taxes, depreciation, and amortization (EBITDA) for the 3rd Quarter of 2023 amounted to 12.3 million euros, which compares with 5.8 million euros in the 3rd Quarter of 2022 and 2.9 million euros in the 3rd Quarter of 2019.
Please note that, despite the greater percentage increase in operating costs compared to revenue, the accumulated EBITDA in September was 12.2 million euros, which compares with 10.6 million euros in the same period of 2022 and with 2.9 million of euros verified in September 2019.
On September 20, 2023, SATA Air Açores carried out the early payment of 60 million euros in debt, issued in December 2022. With this early payment, SATA Air Açores will save around 1.2 million euros already in 2023 (4th Quarter 2023), with a direct impact on the company's future Net Result, estimated at 18 million euros in savings by 2026.
Glossary
ASK: Available seat kilometer | Seat-kilometer - total number of seats available for sale multiplied by the number of kilometers flown.
Load Factor: Total number of passenger-kilometers (RPK) divided by the total number of seat-kilometers (ASK).
EBITDA: Earnings before interest, taxes, depreciation, and amortization.
EBIT: Operating income before interest and taxes.