LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
No Result
View All Result
ADVERTISEMENT

Aegean’s Second Quarter Revenue Down 88%, Gets €150M State Backed Loan & Holds Customer Funds Hostage

by John Ollila
September 28, 2020
Reading Time: 2 mins read

Aegean, a Greek-based Star Alliance airline, today released its second-quarter results that were uglier than expected.

Olympic Air

The airline’s revenue was down 88% in the critical April – June quarter, and it received approval for €150M in stated backed loans. Aegean fraudulently doesn’t provide refunds, against EU rules, for flights it has canceled, but rather issues “credits” to consumers that are worthless in case the airline liquidates.

I combed through the accounts signed off by EY and found interesting tidbits:

ADVERTISEMENT

There are at least €70M in unpaid refunds to consumers that are spelled out.

€138M in advance payments for tickets that will mostly not be utilized.

The Miles+Bonus loyalty program liability has grown by €8M in six months. The airline must record the outstanding miles as a liability on its books.

Here are the full financials:

Download (PDF, 317KB)

Download (PDF, 921KB)

Conclusion

Aegean was very slow at releasing its second-quarter and first-half results, likely hoping that they could report strong numbers from events (third quarter) that took place after June 30th (didn’t materialize).

You can keep the cash position strong by stop making payments to vendors and not refunding consumers. Eventually, however, this leads to court action at overseas ports like what TAP recently found out (read more here) when their bank accounts in Germany were seized by court to cover unpaid judgments.

Aegean lost the profitable summer season that the airline uses to cover the slower winter months. I would assume that forward tickets sales will be abysmal due to a lack of consumer confidence in the airline and the recent Covid-19 developments within the European Union.

Ernst & Young, Aegean’s auditor, appears to in the process of becoming the next Arthur Andersen signing of dubious company accounts like what just happened Wirecard (more than €1B missing).

Considering how vital the tourism sector is for Greece’s economy, I doubt that the country’s government would allow Aegean to go under.

Previous Post

Radisson COVID-19 Reservation Policy Now Valid Until October 31, 2020

Next Post

Choice Privileges Europe 29% Off Through December 31, 2020 (Book By October 12)

Related Articles

Aegean & Olympic 50% Off Economy Tickets October 1 – March 31, 2023 (Book By May 30)

Aegean & Olympic 50% Off Economy Tickets October 1 – March 31, 2023 (Book By May 30)

John Ollila
May 28, 2022

Aegean and Olympic Air have launched a sale to celebrate the former's 23th anniversary (the latter is much older –...

Aegean Miles+Bonus Extends Member Tiers By 6 Months Through November 24, 2022

Aegean Miles+Bonus Extends Member Tiers By 6 Months Through November 24, 2022

John Ollila
May 2, 2022
1

Aegean has decided to extend tiers of many members by an additional six months through November 24, 2022. Miles+Bonus has...

Aegean’s New Non-Schengen Lounge Open In Athens

Aegean’s New Non-Schengen Lounge Open In Athens

John Ollila
April 4, 2022
1

Aegean on Saturday opened a new non-Schengen lounge at Athens airport. https://youtu.be/4HBK5xlcmVA The new lounge welcomes Star Alliance Gold members...

Upgrade Your Travel IQ

Make the most of your travel with our free and daily newsletter with the latest hotel and airline news and promotions.

We do not sell or share email addresses.

ADVERTISEMENT

Trending

Japan (1): How I Ended Up Spending Six Months In Japan
Travel News

Japan Opens eVISA Applications For Citizens Of The US & Canada On August 18, 2022

August 10, 2022
Hilton Go Employee And Friends & Family Rate Plans
Hilton Honors

Hilton Go Employee And Friends & Family Rate Plans

July 25, 2021
Grand Hyatt Sanya Evicting Guests To Become Quarantine Hotel
Hyatt - World of Hyatt

Grand Hyatt Sanya Evicting Guests To Become Quarantine Hotel

August 10, 2022
Celebrity Cruises & Other Lines Are Re-Introducing Mask Requirements for Indoor Spaces After Infections Exceed 1% Of Passengers
Cruises

More Cruise Lines Just Dropped Their Pre-Sailing Covid Testing Requirements

August 11, 2022
Airfare of the Day [Business Class] SINGAPORE AIRLINES Bangkok to Los Angeles from $2,236
Airfare Of The Day

Airfare of the Day [Business Class] SINGAPORE AIRLINES Bangkok to Los Angeles from $2,236

August 11, 2022

Top Categories

  • IHG Rewards Club
  • Marriott Bonvoy
  • Hilton Honors
  • Accor ALL
  • Airfare Of The Day
  • Starwood Preferred Guest (SPG)
  • Hyatt – World of Hyatt
  • American Airlines – AAdvantage
  • Travel News
  • United Airlines – Mileage Plus
ADVERTISEMENT

All Categories

In Case You Missed It

Airfare of the Day [Premium Economy] SCOOT Sydney to Berlin from $1,142/A$1,648

Airfare of the Day [Premium Economy] SCOOT Sydney to Berlin from $1,142/A$1,648

August 5, 2022
GHA Discovery D$50 Per Stay Through December 31, 2022 (Book August 8 – 31)

GHA Discovery D$50 Per Stay Through December 31, 2022 (Book August 8 – 31)

August 9, 2022
Celebrity Cruises & Other Lines Are Re-Introducing Mask Requirements for Indoor Spaces After Infections Exceed 1% Of Passengers

More Cruise Lines Just Dropped Their Pre-Sailing Covid Testing Requirements

August 11, 2022
Reader Question: Where & How To Use Hilton Be My Guest Certificate?

Reader Question: Where & How To Use Hilton Be My Guest Certificate?

August 8, 2022
Accor ALL South America Up To 20% Off Mastercard Offer Through December 31, 2022

Accor ALL South America Up To 20% Off Mastercard Offer Through December 31, 2022

August 6, 2022
ADVERTISEMENT

Since 2011, we have been helping millions of visitors like you untangle travel loyalty programs for free upgrades, flights and hotel nights.

Facebook Twitter Youtube Instagram

Site Navigation

  • About LoyaltyLobby
  • News
  • Reviews
  • Airfares
  • Contact Us

Hotel Promotions

  • Accor
  • Hilton
  • IHG Rewards
  • Marriott
  • World of Hyatt

Sign Up For Our Newsletter

Our free daily newsletter sends you the latest information on hotel and airline programs.

We do not share or sell email addresses.

Site & Contents ©2011-2022 LoyaltyLobby.com
Terms of Use & Privacy Policy

  • News
  • Hotel Promotions
    • Accor
    • Best Western
    • Choice
    • Fairmont
    • Hilton
    • IHG Rewards
    • Marriott
    • Radisson Rewards
    • Ritz-Carlton
    • Starwood
    • World of Hyatt
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
No Result
View All Result

© 2011–2021 LoyaltyLobby.com - Site & Contents