SATA Group achieved the best revenue ever for a 1st semester and anticipates good accomplishment of the Restructuring Plan in 2022

In the 1st half of 2022, SATA Group obtained consolidated revenues of 107.9 million euros, a growth of 51.4% compared to the same period of 2021 and 15.2% compared to the same period of 2019.

This scenario means the best 1st semester in terms of revenue, since there are consolidated results in the group and shows the airlines’ traffic recovery after the pandemic, which represents a significant support for the tourist activity in the Autonomous Region of the Azores.

The number of passengers carried by SATA’s airlines doubled compared to the 1st half of 2021 and was only 2.3% below the first half of 2019.

Azores Airlines obtained revenues of 70.2 million euros in this period, a strong growth of 115%, compared to the same period of 2021 and 8.6% compared to the same period of 2019.

Concerning SATA Air Açores, it recorded 41.5 million Euros in revenues, a growth of 2.2% vs. 2021 and of 26% vs. 2019. In both airlines, the semester from January to June 2022 became the best 1st semester in terms of revenue in the last 10 years.

Also, the decreasing in Unit Operating Costs, except for fuel. In the period in question, a reduction of 31.4% and 10% was verified in Azores Airlines, compared to 2021 and 2019, respectively. At SATA Air Açores, there was an 18.4% and 5% reduction in the same comparison. These improvements tend to increase as the operation stabilizes, as restructuring initiatives are strengthening, and as extra costs related with the pandemic response disappear. Cost reductions achieved along the year, helped to face the massive impact of rising fuel costs, although only partially.

In the opposite direction, there is an increase in fuel costs by 304% compared to 2021 – the equivalent of over 24.3 million euros – caused by the increase in prices, following the international crisis triggered by the war in Ukraine. Compared to 2019, fuel costs rose 75%, around 13.9 million Euros.

As a result, EBITDA (Operating Results before Interest, Taxes, Depreciation and Amortization) of Azores Airlines, traditionally negative in the 1st semester, recorded a value of 14.9 million Euros, in line with 2019 (after IFRS). SATA Air Açores recorded an EBITDA of 4.9 million euros in this period, substantially higher than the 0.2 million euros in 2019.

Regarding air operation and punctuality, standards of service were under pressure in the 2nd quarter because of airport constraints in Europe and America. Even so, as a result of planning and operational management work, SATA’s airlines have managed to carry out the planned operation, incurring a minimum of cancellations (essentially due to weather conditions) and avoiding what would be a serious problem for tourism and the economy in the Azores.

Summer traffic continues to grow at a strong and sustained pace. However, fuel prices remain high, indicating a tendency to decline slightly, but unstable. Inflation growth and rising interest rates also threaten demand in the last four months. Even so, SATA Group expects to end the year with a better performance than expected in its Restructuring Plan. The outlook for the rest of the year is nevertheless moderate