Aegean Airlines Navigates Airplane Groundings And Inflation

(6min)

Summary

  • Aegean Airlines faced challenges in 2024 due to flight suspensions but resumed flights to Tel Aviv and Beirut, improving its financial outlook.
  • Despite cost pressures and grounded fleet, Aegean's revenues grew by 5% in 2024, with EBITDA rising 1% to €405.3 million.
  • The stock is undervalued, with a 39% upside potential, driven by valuation multiple expansion and increasing capacity to the Middle East.
  • New airplane deliveries and fleet reactivation should support long-term growth, despite economic and regional instability risks.
  • Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More »

Aegean Airlines Airbus A320 airplane Heraklion airport in Greece

Boarding1Now/iStock Editorial via Getty Images

Aegean Airlines (OTCPK:AGZNF) is one of the European airline stocks that I cover. The Greek airline had some challenges in 2024 amid suspension of flights to Tel Aviv, Beirut and Amman. The airline returned to Tel

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This article was written by

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Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of EADSF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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