Aegean Airlines Navigates Airplane Groundings And Inflation

2025-05-05 09:48:38 ET

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.

Aegean Airlines ( 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 Aviv in December 2024 and its flights to Beirut were reinstated in February. So, the financial results in 2024 were pressured amidst the flight cancellations towards some destinations in the Middle East....

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