Aegean announced yesterday a €25 million investment in Volotea, one of Europe's leading low-cost carriers based in Barcelona. The investment will be made through the joint participation of Aegean and Volotea's existing shareholders in a capital increase of up to €50 million through the issuance of a convertible financial instrument (loan) with profit participation rights.

Subject to certain conditions, mainly related to Volotea's financial performance in 2024, a second disbursement of this financial instrument in the second quarter of 2025 of up to €50 million may be made, in which Aegean will also participate with an amount of €25 million.

Therefore, the total capital increase may reach up to €100 million, with Aegean's participation amounting to €50 million. If AegeaN's initial participation in the first disbursement is converted into shares, its investment will be equivalent to a 13% stake in Volotea, while if the second tranche is disbursed and subsequently converted into shares, Aegean's total stake will amount to 21%.

MEMORANDUM OF UNDERSTANDING

At the same time, Aegean and Volotea signed a Memorandum of Understanding to explore new opportunities for cooperation in distribution and other commercial sectors, with the aim of making the most of the synergies between the two companies. The aim is to strengthen commercial cooperation for cross-selling through the same distribution and sales channels (mainly the websites), increasing the number of codeshare flights in order to strengthen the commercial presence of both companies in the markets where they operate.

In particular, the commercial cooperation will initially focus on the distribution of each carrier's products through the other's website, as well as on the further exploitation of the international network

• from/to the regional airports in Greece, such as Heraklion, Rhodes, Chania
• to/from key European markets such as France, Italy, and Spain in order to offer more choices to passengers by making more efficient use of the resources and investment of the two airlines.

Finally, the two companies will explore the possibility of serving part of Volotea's needs for the use of flight simulators and maintenance services for part of its aircraft at Aegean's new training centre and technical base.

COMPLEMENTARY OPERATION

Aegean's Chairman of the Board of Directors, Eftihis Vassilakis, said, among other things, that "Aegean and Volotea have different business models and product philosophies but to a large extent they operate in a complementary manner and share the same customer-centric philosophy. We invest in Volotea as we believe in its strategy and growth prospects, but also by aiming to strengthen distribution and coverage of important markets (such as France, Italy, and Spain) and the ability to offer direct connections to Greece's regional airports."

Mr. Vassilakis underlined the trend of consolidation that has been taking place in the air transport sector in recent years, referring among others to the acquisition of Alitalia by Lufthansa and Air France-KLM's acquisition of a strategic stake in SAS. He said that all large or full-service airlines have either created, acquired or partnered with low-cost carriers, which in certain parts of the network, specific consumer needs, are more appropriate. He added that for Aegean's sizes, the choice in the face of increased competition is partnerships such as the one with Volotea.

VOLOTEA'S IPO SURPLUSES

On the sidelines of a related event, Mr. Vassilakis noted that some first signs of cooperation with Volotea will become visible in 2025 and will gradually evolve over the 2026-2027 period. Mr. Vassilakis stressed that "we are interested in the concept of goodwill in a 3-5 year range from our investment in Volotea," adding that "if Volotea proceeds to an IPO as the company's management has stated, Aegean may have gained significant goodwill. However, we should not only focus on the €25 million investment but on the strategy we have for commercial cooperation with Volotea.".

THE VOLOTEA PROFILE 

Carlos Muoz and Lázaro Ros, who were also the founders of Vueling, founded Volotea in 2011. It started operations in 2012 and operates from 22 bases, mainly in France, Italy and Spain, serving over 450 routes, focusing mainly on seasonal, smaller routes and leisure markets. The bases in the French, Italian and Spanish markets account for around 90% of its total activity, with the Greek and German markets making up the remaining 10%. The airline operates a fleet of 44 Boeing A319 and A320 aircraft and employs around 2,100 people.