1

AEGEAN AIRLINES S.A.

ANNUAL REPORT
FOR THE YEAR 2015

2
TABLE OF CONTENTS

,
Part A

1. Board of Directors 5
2. AEGEAN at a glance 7
3. Principal Milestones 9
4. AEGEAN & Olympic Air Dynamic growth 12
5. 2015 in figures 15
1. Passenger traffic 15
2. Group Financial Performance 19
6. Group Financial Performance 2014-2015 20
1. Income Statement 20
2. Revenue breakdown 21
3. Evolution of main expenses as % on revenue 21
4. Revenue – costs per ASK (Available Seat Kilometer) 21
5. Balance Sheet 22
6. Cashflow Statement 24
7. Distinctions 25
8. The Fleet 27
9. Routes and Destinations 29
10. Star Alliance 33

,
Part Β

Annual Financial Report for the period 01.01.2015-31.12.2015

in accordance with art. 4 of Law Ν.3556/2007 37

Publication Date: April 2016

4
1. BOARD OF DIRECTORS

Theodore Vassilakis,
Chairman (Executive)

Eftichios Vassilakis,
Vice Chairman (Executive)

Dimitrios Gerogiannis,
Managing Director (Executive)

Achilleas Constantakopoulos,
Director (Non-Executive)

Anastasios David,
Director (Non-Executive)

Iakovos Georganas,
Director (Independent, Non-Executive)

Christos Ioannou,
Director (Non-Executive)

Panagiotis Laskaridis,
Director (Non-Executive)

Alexandros Makridis,
Director (Independent, Non-Executive)

Nicholas Nanopoulos,
Director (Non-Executive)

Victor Pizante,
Director (Independent, Non-Executive)

George Vassilakis,
Director (Non-Executive)

6
2. AEGEAN AT A GLANCE

• Full service carrier focusing on quality services

• Providing scheduled & charter, short & medium haul services since 1999

• Controlled growth from the first years of operations. Becoming the largest Greek airline in 2008

• Listed in Athens Exchange in July 2007

• Star Alliance member since June 2010

• Acquisition of Olympic Air in October 2013

• Operating a fleet of 44 A/C of Airbus A320 family (A319, A320, A321) and 14 Bombardier (Dash 8-100, Dash 8-Q400)

• 134 destinations, 100 international and 34 domestic in 45 countries, with 15,2 million available seats in 2015

• 11,6 million passengers carried in 2015

A summary of the company’s and group’s financial is presented below:

Income Statement
Company Group
Amounts in ,000 € 2008 2009 2010 2011 2012 2013 2014 2015
Pro-forma
Revenue 1 558,820 552,855 515,839 579,983 562,858 850,003 911,794 982,964
EBITDAR:
Earnings before net interest expense,
income taxes, depreciation and
amortization and rental costs 102,185 95,892 75,819 61,779 73,394 181,814 209,468 217,320
Profit / (losses) before taxes 39,938 32,526 (18,679) (31,153) (12,618) 70,850 94,631 100,317
Profit / (losses) after taxes 29,465 23,037 (23,292) (27,176) (10,496) 52,459 80,245 68,394
Net profit margin % 5% 4% -5% -5% -2% 6% 9% 7%

31.12. 2008 2009 2010 2011 2012 2013 2014 2015

Pro-forma
Cash and cash equivalents
& financial assets 182,805 212,976 195,996 171,758 156,084 244,173 218,385 237,836
Total equity 85,973 83,343 103,231 98,477 82,126 59,049 58,486 55,372
Total loan obligations/
(Cash & financial assets) (96,832) (129,633) (92,765) (73,281) (73,958) (185,124) (159,899) (182,464)

8
 Company Group
Aegean 2008 2009 2010 2011 2012 2013 2014 2015
Pro-forma
Passengers (m) 6.0 6.6 6.2 6.5 6.1 8.8 10.1 11.6
International pax (m) 2.3 2.8 3.1 3.5 3.5 4.3 4.9 6
Domestic pax (m) 3.7 3.8 3.2 3.0 2.6 4.6 5.2 5.6
ASKs (m) 6,216 8,103 8,308 9,839 9,139 10,732 12,194 14,668
Stage length(km) 683 763 835 981 1,047 732 767 809
Load factor 70% 66% 68% 69% 74% 78% 78% 77%
RASK 9.1 6.9 6.3 5.9 6.2 8.0 7.6 6.8
CASK (€cents, excl fuel) 6.1 5.2 5.1 4.4 4.3 5.3 4.9 4.7

Note 1: In October 2013, AEGEAN has completed the acquisition of Olympic Air. The published consolidated financial statements include Olympic Air
only for the last 2 months of the year 2013. For comparison purposes, pro-forma results for the group are presented for 2013, ie as if Olympic Air was
consolidated for the full year 2013.

Note 2: Revenue excluding passenger airport charges. The Company until 2012 reported revenue including passenger airport charges. In 2013 revenue
and expenses from passenger airport charges are netted off, reducing the relative revenue and expense item, without however affecting the absolute
operating and net profit. To allow comparison, revenue is shown excluding airport charges in the previous years.

Note 3: Cash & cash equivalents include restricted cash and investments in bonds, shares and Money Market Funds.

9
3. PRINCIPAL MILESTONES

1988-1999
_ Establishment of the Company in 1988 as a limited liability Company and transformation into a société anonyme in 1995

_Acquisition by the Vassilakis Group of companies in 1994

_ The Company operates non-scheduled executive aviation services (air-taxi flights) from 1994 until the launch
of scheduled flights in 1999

1999
_ Liberalization of the Greek domestic aviation market

_ AEGEAN starts operating scheduled flights in May 1999 with brand new aircraft (AVRO RJ-100) and an expanded
shareholders base

_ Acquisition of AIR GREECE in December 1999 and number of A/C operated rises to 9 (4 brand new AVRO RJ 100, 3 ATR 7 and
2 FOKKER-100). The Company undertakes the activity of the newly acquired company which ceased its operations and
remained inactive until the completion of its sale in 2007

_ 10 domestic destinations served during the first year of operating scheduled flights

2000
_ Achieve fleet homogeneity through the return of 2 aircraft FOKKER-100 that were replaced by 2 AVRO RJ-100

_ 11 domestic destinations served with more than 80 daily flights

_ Significant rise in passenger traffic to 1.5 million in 2000 from 310 thousand in 1999

2001
_ Merger with Cronus Airlines, Greek carrier owned by Laskaridis Group which operated Boeing 737/300-400 aircraft on
domestic and international routes

_ Transfer to the new modern facilities of Athens International Airport

2002
_ A restructuring plan is put into place following the merger with Cronus, involving cost cutting and network rationalization
in order to cope with adverse market conditions created by the prolonged economic downturn in global aviation brought
forth by the events of September 11, 2001

_ AEGEAN carries 2.4 million passengers

2003
_ AEGEAN turns marginally profitable for the first time since the launch of operations

_ The first Greek airline to launch electronic ticketing as a means of booking and issuing tickets over the Internet

_ Initiate flights to Milan from Athens

_ Gradual increase of Low Cost Carriers’ activity on competitive international routes to Greece

_ Decision not to extend 3 ATR-72 leases

10
 2004
_ The Company’s fleet comprises of 19 jet aircraft: 13 Βoeing 737-300/400 and 6 AVRO RJ-100

_ Initiate flights to Larnaca (Cyprus)

_ Rise in passenger traffic from 2.8 million passengers in 2003 to 3.6 million passengers in 2004

2005
_ AEGEAN becomes Lufthansa’s regional partner in Greece and thus becomes the first Greek carrier which implements a close commercial
agreement with an international carrier

_ In December 2005 the Company finalized a non recallable order to purchase 8 new Airbus Α-320 and lease additional 3,
with an option to purchase up to 12 additional aircraft

2006
_ Passenger traffic rises from 4 million passengers in 2005 to 4.45 million passengers in 2006

2007
_ New direct flights Athens-Munich and Athens-Frankfurt

_ Agreement to purchase and lease 25 Aircraft of the Airbus A320 family finalized

_ AEGEAN takes delivery of the first 3 Airbus A320

_ Listing in Athens Exchange, raising € 135 million through an Initial Public Offering

2008
_ Exercise option to lease two additional Airbus A321 - finalizing total Airbus order for the delivery of 27 Aircraft

_ New direct flights Athens-London, Athens-Paris and Athens-Düsseldorf

_ Passenger traffic rises to 6 million passengers, from 5.2 million in 2007 and AEGEAN becomes the largest air carrier in Greece

2009
_ Acceptance by STAR ALLIANCE for future membership

_ New direct flights from Athens to Brussels, Berlin, Barcelona, Venice, Istanbul, Vienna and Madrid

_ Passenger traffic rises to 6.6 million passengers

2010
_ Returns the remaining Βoeing 737-300/400 A/C as well as 2 RJ AVRO

_ New flights: Athens-Tel Aviv and Thessaloniki-Moscow

_ AEGEAN joins STAR ALLIANCE on June 30, 2010

_ Beginning of the Greek crisis impacts local demand significantly

11
2011
_ Homogeneous fleet as of May 2011 following the return of 4 remaining AVRO RJ 100

_ New Athens-Moscow route

_ Significant increase in international passenger traffic from Greek regional airports

(+23% from/to Heraklion, +37% from/to Rhodes, +10% from/to Thessaloniki)

_ Acquisition of 3 slots in London Heathrow airport and 1 slot in Paris Charles de Gaulle airport

_ Passenger traffic rise at 6.5 million passengers from 6.2 million in 2010

2012
_ International expansion, strengthening overall presence in the main markets of Germany, France, Russia, Israel and Belgium

_ International flights from 8 bases in Greece and Cyprus. New flights to Czech Republic, Hungary and Georgia

_ AEGEAN agrees with MIG to acquire OLYMPIC AIR, subject to approval by the European Competition Commission

_ AEGEAN receives the SKYTRAX 2012 World Airline Award as the best Regional Airline in Europe

_ Passenger traffic at 6.1 million passengers

2013
_ The acquisition of Olympic Air is completed following the approval of the European Commission

_ International network expands with the addition of routes to 5 new countries (Ukraine, Switzerland, Poland, Sweden and Azerbaijan)
and 10 new destinations (Geneva, Manchester, Lyon, Stockholm, Kiev, Baku, Berlin, Nuremberg, Hannover, Warsaw)

_ Passenger traffic rises at 6.9 million passengers

2014
_ Finalizes order for the delivery of 7 new Airbus A320 in 2015-2016

_ The first Greek airline offers 13 million available seats in 119 destinations, 86 international destinations in 33 countries
and 33 domestic destinations

_ Passenger traffic rises to 10.1 million passengers from 8.8 million in 2013 (AEGEAN & Olympic Air)

2015
_ Continuous dynamic growth with AEGEAN flying to a total of 134 destinations, 100 international and 34 domestic in Greece

_ AEGEAN is awarded with the SKYTRAX 2015 World Airline Award for the fifth consecutive year and 6 times in total,
as the best regional airline in Europe

_ Delivery of 4 new aircraft Airbus A320ceo’s

_ AEGEAN grows international traffic strongly ahead of the market in Athens as well as Rhodes and Heralkion.

_ Passenger traffic rises at 11.6 million passengers.

12
 4. AEGEAN & OLYMPIC AIR DYNAMIC GROWTH

• In 2015 AEGEAN continued its fast growing path for a third consecutive year since the acquisition of OLYMPIC AIR, within a recessionary envi-
ronment for the Greek economy and despite the unique challenges in the business environment and intensifying competition. The integration
of Olympic Air took place in accordance with initial plans, yielding cost and review synergies and allowing further network expansion and a
more significant representation of Greece in the aviation industry.

• From 2012 until 2015, the company has doubled the number of passengers from 6.1 to 11.6 m, while high growth was accompanied by
healthy profitability. In 2015, AEGEAN operated a fleet of 58 aircraft, 44 aircraft jet A320 and 14 turboprop, increasing its fleet by 13 Airbus
from 2013, plus the 14 turboprop which were added to the fleet with the acquisition of OLYMPIC AIR. The increase in total production as
measured in available seat kilometers amounted to 60% compared with 2012 and 37% compared with 2013. In 2016 AEGEAN plans further
growth, adding 1 m available seats, an increase of 7% compared with 2015.

• During the recent years the network expansion has accelerated, focusing on Western and Eastern European markets and as well the Middle
East, reaching now the largest mid-haul network ever covered by a Greek airline, supporting the Greek economy and the tourism sector. More
specifically, over 40 new international destinations have been added from Athens since 2013, significantly promoting Athens as a tourist
destination and also contributing to rising incoming tourist flows to Greece in during the last years. This contribution is even more significant,
if one considers the challenging economic conditions in the country, in which the growth was achieved.

• The commercially successful international network expansion, which involved adding new secondary cities in Western Europe, as well as
penetrating new markets in the south and east of Greece, and the acquisition of OLYMPIC AIR which facilitated the full coverage of the do-
mestic network, have led to further strengthening Athens Hub and tripling of the number of connecting passengers over the last 5 years.
Particularly in 2015, the increase in connecting passenger via Athens hub amounted to 50%.

• Moreover AEGEAN remained committed to maintain a high quality offering, aiming at continuous improvement of its services, investing in
new technologies, upgrading its loyalty program as well as its digital services. In 2015, AEGEAN has been awarded with the SKYTRAX 2015
World Airline Award for the sixth consecutive year and 7 times in total, as the best regional airline in Europe.

13
 Passengers (in million) Available Seat Kilometers - ASKs (in billion)

11.6
10.1
8.8
6.1 14,668
12,194
10,732
9,139

2012 2013 2014 2015

2012 2013 2014 2015
Domestic International

Fleet 58 Network - Destinations

50
45

30
134
119
104
65

2012 2013 2014 2015

Turboprop Airbus 2012 2013 2014 2015

1,400 Aegen Transfer Pax Departing from Athens

1,200

1,000 +50%
More than 3χ
800

600

400

200
2008 2010 2013 2014 2015

14
5. 2015 IN FIGURES

1. Passenger traffic
The number of passengers carried by AEGEAN and OLYMPIC AIR rose to 11.6m in 2015, 15% higher yoy or 1.5m more compared to 2014.

Despite the significant political and economic challenges facing the country, the Company managed to increase the number of passengers carried on
international routes by 24% to 6 million and on domestic network, by 7% reaching 5.6 million. The main drivers behind the positive traffic performance
were the increased tourist flows to the country and particularly to Athens, network efficiencies, gradual routes maturity as well as increased connectivity.

The positive performance of the new direct international flights from the bases of Heraklion and Rhodes were equally important for the company’s strategy,
facilitating further growth as well as gaining market shares in these two key tourist destinations, as overall market traffic to the islands was marginally
lower this year.

Total activity, as measured by ASKS (Available Seats Kilometers) increased to 14,7bn from 12,2bn in 2014, an increase of 20%.

Below figures include OLYMPIC AIR as of 2013.

16
 Passengers (in million)

11.6
10.1

8.8

6.2 6.1
5.9

4.4
3.6

2.4
1.6
0.3

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014
Aegean Olympic Air

RPK - Revenue Passenger Kilometers (in billion)

12.0
11.3

10.0
9.6

9.0

8.4
8.0

6.9 6.9
7.0

6.0 5.8
5.4

5.0
4.4
RPK in billion

RPK
4.0 3.6
Excluding Οlympic Αir
2.9
3.0 2.7
2.4

2.0

1.0

0.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

17
 ASKs -Available Seat Kilometers (in billion)
15,000

14,668

13,000

12,194

11,000
10,732

9,839

9,000
8,307 9,139
8,103
ASKs in billion

ASK
7,000
6,215 Excluding Οlympic Αir

5,108
5,000

4,023
3,715
3,692

3,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Flights (in million) (1) Average stage length (km)

Flights Aegean Average stage length

110
Flights Olympic Air Average stage length (without Olympic Air)
100
94

41

1,084
65
1,047
60 59 981
58
55 809
52 53 835
48 763 732 767
46 45
683
639
575 582 588

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Notes:
1. Total scheduled and charter flights-excluding non-revenue flights
2. Available Seat Kilometers (ASKs): A measure of passenger capacity. It is calculated by multiplying the total number of seats (empty or full) available for passengers multiplied by the number of kilometers the seats are flown
3. Revenue passenger Kilometers (RPKs): Refers to a measure of passenger traffic calculated by multiplying the total number of revenue passengers carried by the kilometers they are carried.

18
 Block Hours (in million) Average number of passengers per flight

168

Block Hours (in 0,000) Olympic Air 148 Average number of passengers per flight
Total Block Hours (in 0,000) Aegean 136

106 37

97 98
95 95

80 118
111 106
73 102
104 102 104
93 96 94
60 89
57 56
78

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Average fleet Capacity (1) Load factor (Scheduled flights) (2)

Average fleet capacity Load factor

166 168 78% 78% 77%

155 74%
154 72% 70% 70%
69% 68% 69%
66%
148 139 61%
137
132 132
130
129
127

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Notes:
1. Available seats / Sectors
2. Load factor = Revenue Passenger Kilometers / Available Seat Kilomete

19
2. Group Financial Performance
AEGEAN delivered improved 2015 results, with consolidated revenue at €983m, 8% higher compared to 2014, as a result of significant investments in
network and fleet. Passenger traffic rose by 15% to 11.6m passengers, continuing the fast growth for a second consecutive year following the acquisition
of Olympic Air, carrying 40% more passengers on international network in the last two years and growing considerably faster than the overall rate of air
arrivals to Greece.

Pre-tax earnings rose 6% to €100.3m while net earnings after tax reached €68.4m, 15% lower compared to 2014 due to higher corporate tax rate as well
as an increased deferred taxation effect.

EBITDAR reached €217.3m, while EBITDA stood at €111.2m, resulting to cash & short term financial assets of €238m at year end.
Revenue (in € million) Earnings after taxes & Earnings before taxes (in € million)

Revenue Earnings after taxes

Earnings before taxes

983
100.3
94.9
912 80.4
70.9 68.4
850

52.5

39.9
559 553 580 563
516 29.5 32.5

23.0 2010 2011 2012

2008 2009 -10.5 2013 2014 2015

-12.6
-18.7
-23.3 -27.2
-31.2
2008 2009 2010 2011 2012 2013 2014 2015
Company Group Company Group

Total equity (in € million) Cash & cash equivalent (in € million)

Cash & cash equivalent Bonds, Shares,

Total equity Monday Market Funds
Bonds

238
218

222

219 207 189

2014 2015 2014 2015

Payouts to Shareholders
Financial Year Dividend/Returns Euro/Share Total amount in € Paid
2008 Dividend 0.25 17,854,275 2009
2009 Dividend 0.13 9,284,223 2010
2014 Capital Return 1.00 71,417,100 2014
2014 Dividend 0.70 49,991,970 2015

20
 6. GROUP FINANCIAL PERFORMANCE 2014-2015
amounts in ,000 €

The following consolidated Income Statement is compared with last year consolidated Income 2014.

1. Income Statement

Amounts in ,000 € 2015 2014

P&L
Revenue
Scheduled Services 827,383 748,557
Charter 45,749 61,362
Other (cargo, service charge, executive aviation) 109,831 101,875
Total revenue 982,964 911,794
Other operating income 18,828 9,745
Employee benefits (109,390) (100,467)
Aircraft fuel (216,255) (232,773)
Aircraft maintenance (97,596) (77,634)
Overflight expenses (67,089) (53,942)
Ground handling expenses (60,437) (51,532)
Airport charges (50,744) (37,404)
Catering expenses (24,365) (21,072)
Distribution expenses (73,772) (61,192)
Marketing and advertising expenses (14,614) (12,295)
Other operating expenses (70,210) (63,759)
EBITDAR 217,320 209,469
EBITDAR margin 22.1% 23.0%
Aircraft leases (106,106) (90,678)
EBITDA 111,214 118,791
EBITDA % margin 11.3% 13.0%
Depreciation (14,010) (12,551)
EBIT 97,204 106,240
EBIT % margin 9.9% 11.7%
Financial results 3,113 (11,349)
EBT 100,317 94,891
EBT % margin 10.2% 10.4%
Income Tax (31,923) (14,449)
Net earnings / (loss) after tax 68,394 80,441

21
amounts in ,000 €

2. Revenue breakdown

% of total revenue 2015 2014

Revenue from scheduled flights 84% 82%
Revenue from charter flights 5% 7%
Other operating income 11% 11%
Total 100% 100%

3. Evolution of main expenses as % on revenue

% on total revenue 2015 2014
Personnel expenses 11% 11%
Aircraft fuel 22% 26%
Maintenance 10% 9%
Eurocontrol charges 7% 6%
Handling charges 6% 6%
Airport charges 5% 4%
Catering costs 2% 2%
Distribution costs 8% 7%
Marketing costs 1% 1%
Aircraft leasing 11% 10%
Other operating expense 7% 7%
Depreciation 1% 1%

4. Revenue - Costs per ASK

i in € cents
2015 2014
Revenue per Available Seat Kilometer (RASK) 6.83 7.56

Costs per Available Seat Kilometer (CASK)
Personnel expenses 0.75 0.82
Aircraft fuel 1.47 1.91
Maintenance 0.67 0.64
Eurocontrol charges 0.46 0.44
Handling charges 0.41 0.42
Airport charges 0.35 0.31
Catering costs 0.17 0.17
Distribution costs 0.50 0.50
Marketing costs 0.10 0.10
Other operating expense 0.48 0.52
Total 5.35 5.84
Total operating expenses (excl, fuel) 3.87 3.93

22
 amounts in ,000 €

2015 2014
Aircraft leasing 0.72 0.74
Depreciation 0.10 0.10
Financial result - expense/(income) (0.02) 0.09
Profit before taxes per ASK 0.68 0.78
Average Stage Length (km) 809 767

5 5, Κατάσταση Οικονομικής Θέσης 31,12,2013-31,12,2014

5. Balance sheet

31/12/2015
31/12/2014 1/1/2014
ASSETS Revised Revised
Non current assets
Intangible assets 47,602 47,908 47,437
Goodwill 39,756 39,756 39,756
Tangible assets 103,938 80,489 81,005
Advances for assets acquisition 30,995 56,024 21,135
Financial Assets available for sale 8,902 0 0
Deferred tax assets 16,733 21,159 19,182
Other long term assets 25,998 19,985 15,909
Hedging derivatives 233 10,632 114
Total non current assets 247,157 275,954 224,539
Current assets
Inventories 13,182 13,238 10,951
Customers and other receivables 104,476 87,648 76,945
Advances 14,013 10,602 4,928
Financial Assets available for sale 39,609 10,903 17,296
Hedging derivatives 34,072 24,139 2,146
Restricted Cash 36,392 16,045 0
Cash and cash equivalents 152,933 191,437 226,877
Total current assets 394,677 354,013 339,144
TOTAL ASSETS 668,834 629,966 563,683

EQUITY
Share capital 46,421 46,421 46,421
Share premium account 72,776 72,776 144,744
Other reserves (3,187) (1,444) 1,873
Retained profit 115,965 101,239 22,136
Total equity 221,974 218,992 215,204

23
amounts in ,000 €

LIABILITIES

Long term liabilities

Finance lease contracts liabilities 45,175 49,650 51,492
Hedging derivatives 12,556 5,142 1,697
Liabilities for retirement benefits obligations 8,405 6,600 7,509
Provisions 19,916 29,201 34,413
Other long term liabilities 27,833 34,584 38,532
Total long term liabilities 113,885 125,177 133,643

Short term liabilities

Suppliers 77,123 63,438 53,565
Long term finance leases liabilities payable next year 10,197 8,836 7,557
Other short term liabilities 74,495 70,495 65,106
Liabilities from tickets sold but not flown 83,962 65,729 45,894
Accrued expenses 28,818 23,473 21,587
Hedging derivatives 48,940 35,171 3,557
Current tax income 7,822 15,417 10,218
Provisions 1,617 3,239 7,352
Total short term liabilities 332,975 285,797 214,836
Total liabilities 446,860 410,974 348,479
TOTAL EQUITY AND LIABILITIES 668,834 629,966 563,683

24
 amounts in ,000 €

6. Cash Flow Statement of the Group for the period ended at 31/12/2015

Cash flows from operating activities 31/12/2015 31/12/2014

Profit before tax 100,317 94,891
Adjustments for:
Depreciation of tangible assets 14,010 12,551
Impairment of tangible assets (326) 554
Provisions for aircraft maintenance & bad debts (18,008) 2,718
Foreign currency exchange (gains) / losses (7,851) 8,432
(Profit) / loss from investing activities (1,352) (3,997)
Finance Cost 5,870 6,956
Cash flows from operating activities before changes in working capital 92,660 122,105
31/12/2014 31/12/2013
Changes in working capital
(Increase)/Decrease in inventories 248 (1,648)
Increase) in receivables (29,890) (25,033)
Increase in liabilities 28,218 36,472
Total changes in working capital (1,424) 9,791,6
Interest expenses paid (2,854) (3,245)
Income tax paid (18,429) (17,137)
Net cash flows from operating activities 69,953 111,514

Cash flows from investing activities

Purchases of tangible assets (20,237) (13,699)
Sales of tangible assets 1,981 19
Advances for the acquisition of tangible assets (30,622) (34,889)
Purchase of Financial Assets (43,501) (3,493)
Sales of financial assets 12,302 9,137
Investments in subsidiaries (10,400) (10,400)
Interest and other financial income received 735 2,282
Net cash flows from investing activities (28,498) (51,042)

Cash flows from financing activities

Dividends paid (49,885) 0
Capital return 0 (71,234,87)
Capital return expenses 0 (786)
Financial leases capital paid (9,727) (7,846)
Net cash flows from financing activities (59,612) (79,867)
Net (decrease)/ increase in cash and cash equivalents (18,157) (19,395)
Cash, cash equivalents & restricted cash at the beginning of the period 207,482 226,877
Cash and cash equivalents at the end of the period 189,325 207,482

25
7. DISTINCTIONS

Over the past years, AEGEAN has been awarded by various international and domestic organizations and institutions in recognition of
its contribution to Greek tourism, the development of the market, the quality of its offered services as well as the creativity of its com-
munication and promotional activities.

More specifically, AEGEAN received the Award for Best Regional Airline in Europe for 2009, 2011, 2012, 2013, 2014 and 2015 by Skytrax.

SKYTRAX World Airline Awards are highly prestigious excellence awards for the worldwide airline industry, of great importance for air-
lines, since they are exclusively based on the passengers’ vote.

Additionally, AEGEAN has been repeatedly awarded in the past by Athens International Airport as the fastest growing airline for the
domestic region, as the Company registering the highest passenger volumes at Athens International Airport and as the Airline of the
Decade based on total passengers carried over the 2001-2010 period.

26
8. THE FLEET

AEGEAN has successfully implemented an ambitious fleet renewal plan with the delivery of new Airbus Α320/321 since 2007. New aircraft of the
Airbus A320 family replaced 15 Boeing 737 300/400. As a result, the new fleet facilitated the Company’s network expansion and at the same time
contributed to a significant quality upgrade of its services in both domestic and international network. During 2011, AEGEAN returned the remain-
ing fleet of 4 Avro RJ-100 aircraft and started operating as of May 2011 with a single jet A/C type of the Airbus A320 family. As of October 2013,
Olympic Air’s fleet has been added to the group’s fleet: 10 Bombardier Q400 and 4 Bombardier D100.

In order to facilitate its further expansion strategy, AEGEAN has finalized within 2014 the order for the delivery of 7 new Airbus A320’s, and thereby
reinforcing one of its main competitive advantages – the low average age of its aircraft. The aircraft is equipped with Airbus “Sharklet” fuel saving
wing tip devices and are powered by IAE V2500 engines. Delivery of the 7 aircraft began in June, 2015 and were completed by early 2016.

Overall, in 2015 the fleet consisted of 44 aircraft of the Airbus A320 family (A319, A320, A321) and 14 Bombardier aircraft. AEGEAN and Olympic
Air have invested in 42 new aircraft in total, the largest investment ever to be implemented in the Greek airline sector. New aircraft delivered after
2007 have contributed to a significant upgrade of services offered.

In 2015, the average age of AEGEAN’s fleet is 7.6 years.

AEGEAN Fleet

70
9000
60 8000
50 7000
6000
40
5000
30 4000
31 36 44
3
20 3000
11 21
22 29 30 2000
10 8 13 12 14 14 10
4 6 4 14 14 14 1000
4 6 6 6 6 6 6 6 6 6 6 4

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

RJ 100 B 737 Bombardier Airbus A320 Seats

* In 2010 and 2011 the Company also used 2 and 3 aircraft respectively under short-term wet lease agreement (ACMI) to cover the needs of charter operation.
* Including the fleet of Olympic Air since 201

28
 New Aircraft Deliveries

Airbus
Q400

11

10

3
6
4 3
3
2

2007 2008 2009 2010 2015 2016

Average fleet age (years)

Average fleet age (years)

12
11
10.4
10

8 7.6

6
5 5
4 4
3

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

29
9. ROUTES & DESTINATIONS

In 2015, AEGEAN covered 134 destinations, 100 international in 42 countries and 34 domestic, with 15.2m available seats, 2m more
seats than in 2014. The flights were operated with 58 aircraft, after AEGEAN´s recent investment in new additional Airbus A320ceos.

Despite the challenging conditions in the country following the capital controls, AEGEAN managed to further develop its main bases,
opening up new markets for Greek tourism and new destinations in established markets. With flights to 100 international destinations
from its 9 bases in Greece AEGEAN plays a key role in the resilience of the tourism sector in Greece. The Company invested in network
expansion with flights to 16 new international destinations in 9 countries, adding capacity from Athens as well as the regional bases.

For 2016, AEGEAN plans to operate a total of 145 destinations, 111 international and 34 domestic in Greece in 45 countries. Approxi-
mately 16.2 million seats will be offered, an increase of 1.1 million from 2015.

During the summer season of 2016,14 additional destinations will be launched from Athens, bringing the number of direct services to
101. The 14 new routes are: Amsterdam, Bari, Dublin, Jeddah, Krakow, Lille, Lisbon, Ljubljana, Luxembourg, Naples, Nice, Palma de Mal-
lorca and Split. The new countries served from Athens are 6: Ireland, Luxembourg, The Netherlands, Portugal, Lithuania and Slovenia.

Additional capacity will be invested in Athens, driven by additional frequencies to traditional main source markets like France, Italy,
Switzerland and Saudi Arabia, as well as new routes launched by the Company.

30
 AEGEAN MAP SUMMER 2015

Oslo

Copenhagen

Hamburg
Manchester

Hannover Berlin
Birmingham Amsterdam

Düsseldorf
London

Brussels

Frankfurt Prague

Deauville Stuttgart
Paris Metz

Strasbourg Munich Vienna

Zurich
Nantes

Cairo
Borg El Arab Geneva Venice
Lyon
Milan

Bordeaux

Pisa
Toulouse
Marseille

Rome

Barcelona

Madrid

Catania

Malta

100 International Destinations in 45 countries

31
 Helsinki St. Petersburg

Stockholm Tallinn

Moscow

Tbilisi
Warsaw

Yerevan

Kiev Tehran

Budapest Riyadh

Belgrade
Bucharest

Dubrovnik Sofia

Tirana
Istanbul

Thessaloniki
Corfu
Mytilene

Izmir
Mykonos
Athens
Kalamata Kos

Santorini Rhodes

Chania
Heraklion
Larnaca
Pafos

Beirut

Tel Aviv
Amman

32
10. STAR ALLIANCE

Star Alliance is a global airline network which was established by five airlines, Air Canada, Lufthansa, Scandinavian Airlines, THAI and
United on May 14, 1997.

It has grown to become the first truly global airline alliance to offer worldwide reach, recognition and seamless service to the inter-
national traveller. Its acceptance by the market has been recognized by numerous awards, including the Air Transport World Market
Leadership Award, Best Airline Alliance by both Business Traveller Magazine and Skytrax.

The member airlines are:

Adria Airways, AEGEAN, Air Canada, Air China, Air India, Air New Zealand, ANA, Asiana Airlines, Austrian, Avianca, Avianca Brasil, Brussels
Airlines, Copa Airlines, Croatia Airlines, EGYPTAIR, Ethiopian Airlines, EVA Air, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shen-
zhen Airlines, Singapore Airlines, South African Airways, SWISS, TAP Portugal, Turkish Airlines, THAI and United.

Overall, the Star Alliance network comprises of a combined fleet of 4,457 aircraft and more than 432,600 employees, while it offers
more than 18,500 daily flights to more than 1,330 airports in 192 countries.

Benefits to the Customer

- Access to a global network and the benefits of coordinated schedules that ensure optimized connections within the Star Alliance
network and reduced waiting time

- Through check-in, joint ticketing, check-in and baggage facilities, collocation and connection teams at key airports – all play a role in
creating a smoother travel experience

-More Rewarding Frequent Flyer Programme through earning and redeeming miles across the entire Star Alliance network

- Access to more than 1,000 Star Alliance member lounges worldwide

- Star Alliance offers specialized products and travel options for corporate clients as well as products designed especially for organizers
of international conferences and sports or culture events (Conventions Plus and Meetings Plus)

Benefits to the Company

Star Alliance membership offers multiples benefits to the member carriers such as:

- Worldwide recognition and status

- Network connectivity and consequently increased feeding potential

- Potential to expand their client base with new corporate agreements

-Operational benefits through the common use of terminals and facilities

-Opportunity to develop new services and know-how exchange

34
 Member carriers
Member carriers: 28
Number of passengers: 641 million
Daily departures: More than 18,500
Airports: 1,330 in 192 countries
Lounges: More than 1,000

35
12. ANNUAL FINANCIAL REPORT

AEGEAN AIRLINES S.A.

SOCIETE ANONYME REG. NO.: 32603/06/Β/95/3
31 VILTANIOTI STREET, KIFISSIA, ATTICA

ANNUAL FINANCIAL REPORT

for the period

(1st January to 31st December 2015)

In accordance to art. 4 of Law 3556/2007

and the Board of Directors’ Resolutions
of the Hellenic Capital Market Commission

38
 TABLE OF CONTENTS
Α. Statements of the Board of Directors’ Members 39
Β. Annual Report of the Board of Directors 41
C. Auditor’s Report on Review of Annual Financial Statements 58
D. Annual Financial Statements for the period
1 January 2015 to 31 December 2015 60
E. Figures and Information for the period 01.01.2015 – 31.12.2015 114
F. Company announcements, as per Art.10 Law 3401/2005,
published during the year 2015 116
G. Website for the publication of the Annual Financial Statements 117

39
Α. STATEMENTS OF THE BOARD OF DIRECTORS’ MEMBERS
(IN ACCORDANCE TO ART. 4 PARAGRAPH 2 OF LAW 3556/2007)

It is hereby stated that, to the best of our knowledge, the Annual Financial statements of “Aegean Airlines S.A.” for the period 1 January 2015 to 31 Decem-
ber 2015, which were prepared in accordance to the International Financial Reporting Standards as adopted by EU, truly reflect all Assets, Liabilities and
Shareholders’ Equity along with the Income Statement of the Company, as well as of the companies included in the consolidation.

It is also declared that, to the best of our knowledge, the Board of Directors’ Annual Report truly reflects the business developments, the performance and
the position of the Company, as well as of the companies included in the consolidation, including the key risks and prospects they are facing.

Kifissia, March 21th 2016

The undersigned

Theodore Vassilakis Dimitrios Gerogiannis Eftichios Vassilakis

Chairman of the BoD Chief Executive Officer Vice Chairman of the BoD

40
Β. ANNUAL REPORT OF THE BOARD OF DIRECTORS

of the company “AEGEAN AIRLINES S.A.”

for the period 1 January 2015 to 31 December 2015
This report was compiled according to Law 2190/1920 article 43a, Law 3556/2007 article 4 and the Hellenic’s Capital Market Board of Directors’
resolutions and contains financial and other information of the company “AEGEAN AIRLINES S.A.” (hereinafter called the «Company») and its
subsidiary companies Olympic Air S.A. and Aegean Cyprus Limited (hereinafter called the «Group», jointly with the Company). It aims to provide
an overview to the shareholders and investors of the Company’s general course, financial position and results for the period (01/01/2015 –
31/12/2015) as well as highlight major events that occurred during the period and their impact on the annual financial statements. There is also a
description of the main risks and uncertainties which the Company is currently facing or may face in the foreseeable future and finally a disclosure
of material transactions between the Company and related parties.

− Financial review, business developments and major events for 2015

In 2015 and after a short-lived recovery in the last quarter of 2014, the Greek economy has entered again into contraction which for the whole
year stood at -0.2%. The increased uncertainty worsened right after the Legislative Act of June 28th, leading to a prolonged bank holiday, and
restrictions in capital flows. The agreement that was finally reached on July 12th in the Euro Summit was an important step in reducing further
adverse developments. The above mentioned agreement which ensures the country’s financing until 2018 assumes the adoption and imple-
mentation of certain commitments including the financial system, fiscal adjustments, the strengthening of competitiveness and growth and the
modernization of public sector. Fiscal measures implemented throughout 2015, led to a significant increase in direct and indirect taxes, having a
negative effect on both the competitiveness of the country’s tourist product and the purchasing power of Greek consumers.

The uncertainty and the adverse conditions had a negative impact on international tourist arrivals but did not freeze the positive trend as those
have been increased by 5.7% compared with the same period last year.
The most significant increase was recorded in Athens, that showed an increase of 764 thousand passengers or +22.6% compared to 2014. Santo-
rini and Mykonos also recorded a strong increase, +17.8% and +11.6%, respectively, while tourist arrivals at the other regional airports remained
either at the same levels or at lower levels compared to the previous year, mainly affected by the decreased arrivals of Russian visitors.

In terms of geographical distribution of incoming visitors, according to Bank of Greece most recent survey, travelling non-residents in Greece by
country of origin, it appears that the main countries of origin remain broadly unchanged as in 2014: Germany, UK, France, Netherlands and Italy.
An impressive growth in 2015 came from U.S.A. (+35%) and Canada (+37%) followed by Italy (26%), Germany and U.K. (+18%).
Out of the main origin countries, only Russian traffic had a negative trend in 2015 (-60%), having been affected by ruble depreciation against the
euro and by the challenging economic environment in Russia, that led to lower levels of total visitors arrivals compared to 2014.

In 2015 the Group continued implementing its business plan by expanding the network of international destinations, operating a fleet of 58
aircraft during summer season, increasing its fleet by 8 aircraft compared to 2014. Major investments were implemented in company’s major
base - Athens, as well as in Crete, Rhodes and Larnaca leading to growth. It is important that despite the significant increase in competition, both
on domestic and international routes, but also the challenging economic conditions, the Group maintained its healthy profitability, confirming its
commitment to growth.

More specifically, Group’s total passenger traffic increased by 15% in 2015. Passengers carried reached 11.6 million, 1.5 million more than in 2014.
In domestic traffic, despite aggressive competition and weak domestic demand, Aegean continued presenting a growth of 7% compared to 2014,
carrying 5.6 million passengers, by offering even lower fares and significantly improved connections with the international network.
The greatest part of the increase derived from the international network, where the main investment in new destinations was made, marking a
24% increase, faster than the country’s rate of increase in total air arrivals (5%), confirming the Company’s leading contribution to the develop-
ment of the country’s tourism and its support to the national economy.

The Company during 2015 added 15 new international destinations, targeting both traditional markets such as France, Cyprus, Italy, Switzerland
and new markets such as Saudi Arabia, Norway and Iran.

42
 In 2015, 4 out of 7 ordered Airbus A320 aircraft have been delivered to the Group, relating to the recent order from Airbus, while the remaining
of the order is scheduled to be delivered within 2016.

Group key operating and financial data for the period, compared to the same period last year were as follows:

- Total capacity offered increased by 20% in ASKs.

- Total number of passengers for 2015 was 11.6 million, increased by 15% compared to 2014.

- Average load factor remained stable to 77%.

- Revenue for 2015 amounted to € 983 million from € 912 million in 2014, representing an increase of 8%.

- Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) were € 111.2 million compared to € 118.8 million in 2014.

- Earnings before tax amounted to a profit of € 100.3 million from € 94.9 million in 2014.

- Cash flow from operating activities stood at € 69.9 million.

- The healthy capital structure was maintained with zero bank debt and liabilities from financial leasing contracts amounting to € 55.4 million,
while cash and cash equivalents (€ 152.9 million), restricted cash (€ 36.4 million) along with the financial assets available for sale (€ 48.5
million) amounted to € 237.8 million.

- As at 31.12.2015 Group’s fleet consisted of 58 aircraft compared to 50 at 31.12.2014

43
− Prospects
The overall economic outlook for 2016 remains highly uncertain especially in relation to Greek macroeconomic developments; additional key
decisions are still pending both in terms of fiscal adjustments and in terms of evaluating the implementation process of the county’s financial
aid agreement. At the same time, there are concerns that the world economy is slowing down, and the political developments in EU member
states may affect the unity of the union along with the increased fear in terms of safety.

In terms of demand from international visitors the ongoing turmoil in neighboring Mediterranean countries undoubtedly strengthens tourist
inflows towards European countries, with Greece being one of the destinations that could potentially benefit from this.

Under those circumstances any decline in demand from Greek passengers is expected to be counterbalanced by the increased attractiveness
of the Greek product to international visitors, provided that the country conditions will remain favorable and issues relating to the level of
security or to the increased flows of refugees will remain manageable.

In addition, pressure from competition is expected to continue within 2016, mainly in the domestic market. An increase in the capacity offered
from our main competitors is also expected, but at a lower level, compared to 2015.

The strategic priority for the Company is to continue to be extrovert with the major investment being the improved connectivity and increased
offered capacity of its network out of its main operating hub, Athens Airport. The Company believes that the development of new destinations
out of Athens which adds new incoming traffic to the city, and the further enhancement of Athens hub constitute a significant competitive
advantage. The weaker seasonality, the more efficient utilization of aircraft and the extended network are the main reason in order to further
develop Athens.

In relation to the network, within the first months of the year the Group was delivered three new Airbus A320 aircraft, reaching a total of 61
aircraft. With the increased capacity the Group will offer 16.2 million seats in 2016, an increase of 1.1 million seats from 2015 (+7%), at a
total of 111 international and 34 domestic destinations. In 2016 14 additional destinations will be launched in 12 countries: Dublin, Nice, Lille,
Naples, Bari, Luxembourg, Amsterdam, Lisbon, Mallorca, Ljubljana, Jeddah, Krakow, Riga and Split.

Furthermore, the operational quality and the competitiveness of Greek airports remain a very critical factor for the company. Tourist develop-
ment has significantly supported the Greek economy therefore airport infrastructure maintenance works are imminent.

Upon the singing of the agreement between the Greek State and the Fraport – Slentel consortium, for the development and management of
the 14 regional airports, we expect that all the necessary investments will be accelerated in order to achieve a significant quality improve-
ment, thus will further improve the tourism prospects and the passenger experience.

44
 Given the challenges in the economic environment and the increased competition the Company has set the following strategic priorities:

• Strengthen its network so that it can support connectivity on domestic and international routes.

• Further reduce unit cost, with an emphasis on distribution and aircraft fleet (financial, operating, flight productivity).

• Further increase of the ancillary revenues from the unbundling of additional air traffic services, but also from the rollout of further value
added products, further exploitation of our loyalty program and introduction of innovative services

− Key Performance Indicators Measurement

The Group measures its efficiency by making use of, among others, the following performance indicators, used internationally in the field of
aviation economics:

RASK (Revenue per Available Seat Kilometer)

CASK (Cost per Available Seat Kilometer excluding lease costs)

Passenger yield

45
The above indicators for 2015 compared with the previous year are as follows:

(in € cents) 2015 2014

RASK 6,83 7,56
CASK – EBT level 6,15 6,78
CASK – EBΤ level (excluding fuel cost) 4,67 4,87
Passenger yield 8,88 9,62

RASK and CASK decreased by 9,7% and 9,3% respectively compared to 2014, mainly due to the pressure in fare levels arising from increased
competition and the significant decline in oil prices respectively.

It is important that the CASK (EBT level excluding fuel cost) has been reduced by 4,1%, further enhancing Company’s competitiveness.

− Related Parties’ Transactions

The Company’s transactions with related parties during 2015 were on usual commercial terms and they remained at the same level with the
previous period.

The most significant transactions of the Company with related parties, according to IAS 24, appear on the following table:

Amounts in thousand Euros

Income Expenses Receivables Liabilities
ΟLYMPIC AIR S.A. 76.330,89 15.064,16 666,70 8.370,78
ΑUTOHELLAS HERTZ S.A. 695,79 1.574,12 49,74 189,19
TECHNOCAR S.A. 15,98 52,12 42,37 0,00
ΑUTOTECHNICA S.A. 10,96 14,66 0,00 0,00

Finally, the compensation of the Company’s directors and Board of Directors’ members for the period 1/1-31/12/2015 was € 4,859.47
thousand, while the relevant amount for the Group was €5,055.20. As of 31/12/2015 the obligations towards the directors were € 796.28
thousand while there were no receivables from the directors and the Board of Directors neither for the Company nor for the Group.

46
 − Corporate Governance
Ι. Principals of Corporate Governance
The company has adopted the Principles of Corporate Governance, in compliance with existing Greek legislation and international practices.
Corporate Governance establishes a framework of rules, principles and control mechanisms, based on which it conducts its business with
transparency, aiming at the protection of shareholders’ as well as third party’s interests.

II. Corporate Governance Code

The Company has decided to adopt the Code of Corporate Governance of Hellenic Exchanges S.A. regarding the Listed Companies (called
hereinafter “Code”). This Code can be found at the following link :

http://www.helex.gr/documents/10180/2227277/ESED+Kodikas+FEB+2015+-+A4+-+FINAL+-+Internet.pdf/a1b406ab-52e4-4d76-a915-
9abefd0a9d09

The Company may amend on occasions the applied Code and the Principals of Corporate Governance.

ΙΙΙ. Deviations from the Corporate Governance Code and justification of them
Role and Responsibilities of the Board of Directors
• The Board of Directors has not established a separate committee, which manages the procedure for candidates seeking election in the Board
of Directors and prepares proposals in the Board of Directors concerning the compensation of the members of the Board of Directors given
that the policy concerning these compensations is stable and formed.

Size and Composition of the Board

• 1/3 of the Board of Directors does not consist of independent non-executive members free of conflicts of interest with the company, and of
close links to the Management, the major shareholders or the Company.

• The Board of Directors consists of three executive members, six non-executive members and three independent non-executive members.
This structure has secured the company’s efficiency and productivity throughout the years.

• The Board of Directors does not appoint an independent Vice President, by the independent members, but instead an executive Vice Presi-
dent, as his contribution to the exercise of the executive duties of the President is considered of great importance.

Duties and behavior of the members of the Board

• There is no obligation of any disclosure of professional commitments of Board members (including important non-executive commitments
to companies and non-profit institutions) before their appointment to the Board, nor restriction of the number of their participations to
Boards of other listed companies, as long as all Board members can meet their duties, devote sufficient time to them and be up to date with
all the latest developments for issues related to their duties.

• The appointment of an executive member to a non-subsidiary or associated company does not require any approval by the Board.

47
Nomination of candidates of Board of Directors
• There is no committee for selecting candidates for the Board of Directors, as due to the structure and operation of the Company this
committee is not regarded as essential at this time.

Operation of the Board

• In the beginning of each calendar year the Board of Directors does not adopt a calendar of meetings and a 12-month program of action, as
the meeting of the Board is easy to take place whenever is considered essential in order to meet the company’s needs or due to law without
a fixed action plan.

• The President does not meet on a regular basis with the non-executive members, without the presence of the executive members, to discuss
the performance and remuneration of the latter and other related issues, as any matter is discussed at the presence of all members.

• There are no introductory programs in place by the Board for the new Board members, or continuous professional training for all the other
members, as only individuals with proven expertise and management skills are proposed for election as members.

• There is no specific provision for supply of adequate resources to the committees of the Board to fulfill their duties and recruiting external
consultants, as the allocation of resources is determined by the Company’s management per case, based on individual business needs.

Evaluation of the Board

• There is no institutional procedure to evaluate the effectiveness either of the Board and its committees or the performance of the Chairman
of the Board with a process headed by the Vice President or another independent non-executive board member, in case of absence of an
independent Vice-President. This procedure is not considered necessary based on the organizational structure of the Company.

• The Board does not outline in the annual corporate governance statement the evaluation procedure of the Board and its committees, as
there are no relevant evaluation procedures.

Internal Audit
• The Board of Directors does not perform an annual evaluation of the internal audit procedures as the Audit Committee reviews and reports
to the Board of Directors with the Internal Audit’s Annual Report.

Audit Committee
• There is no special or specific rule for the operation of the Audit Committee, as its main duties and authorities are adequately defined by the
law.

• No specific funds are provided to the Audit Committee for the use of external consultants, as the composition of the committee and the
specialized knowledge and experience of its members ensure its effective operation.

48
 Remuneration
• In the contracts of the executive members of the Board of Directors there is no provision that the Board of Directors may seek for a partial
or full refund of the bonuses paid due to revised financial statements of previous years or use of wrong financial data to calculate such
bonuses.

• There is no compensation committee, comprising exclusively of non-executive members, independent in their majority, which aims to
define the compensation of the executive and non-executive members of the Board of Directors, thus there are no rules for the compen-
sation committee’s’ responsibilities, the frequency of its convocations and other issues related to its operation. The creation of such a
committee has not been deemed necessary until now.

• Each executive member’s remuneration is not approved by the Board of Directors, after compensation committee’s recommendations,
without the executive members being present, given that such compensation committee does not exist. Board executive members’ com-
pensations are determined by the Board of Directors and in accordance to law 2190/1920. The members of the Board of Directors may be
compensated to an amount that is determined by the General Meeting of Shareholders. Any other type of remuneration of the members of
the Board of Directors is paid by the Company if it is approved by the Shareholders’ General Meeting.

General Shareholders’ Meeting

• Summary of the minutes of the General Shareholders’ Meeting is not available on the Company’s website. Nevertheless, the voting results
of any decision taken at this meeting are announced within 15 days of the end of it in both Greek and English.

49
IV. Description of the main characteristics of the Company’s Internal Control and Risk Management systems related
to financial reporting.
Internal Control
Internal control is defined as the sum of processes applied by an entity’s Board, management and other personnel, to secure the effectiveness
and efficiency of corporate operations, consistency of financial reporting and compliance with applicable laws and regulations.

Internal control’s responsibilities include among others the monitoring of financial information, the evaluation and improvement of risk
management and internal control systems, as well as the verification of compliance with the institutional policies and procedures as described
in the Internal Operation Regulations of the Company, the existing legislation and regulatory requirements.

Internal Control reports administratively to the CEO and functionally to the Audit Committee. Internal Control personnel and the members
of the Audit Committee, perform their duties independently and are not subordinate to any other department of the company. The head of
Internal Control is supervised by the Audit Committee. The head of Internal Control is appointed by the Board and is a person with adequate
qualifications and experience.

Internal Control provides reports that are evaluated by the Audit Committee on a quarterly basis.

Risks and Risk Management

• Foreign exchange risk
The Company incurs a substantial portion of its expenses, such as aviation fuel, aircraft lease expenses, distribution costs, spare parts,
maintenance expenses and aviation insurance premiums in U.S. dollars, whereas it generates most of its revenue in euro. Appreciation of the
euro versus the U.S. dollar positively impacts operating profit as the euro equivalent of the U.S. dollar operating expenses decreases, while
depreciation of the euro versus the U.S. dollar negatively impacts the Company’s operating profit. Cover levels are monitored and reviewed on
an ongoing basis in light of market developments and the overall needs of the business. Despite the foreign exchange risk hedging policies,
substantially adverse movements of the U.S. dollar could potentially have a material negative impact on the business activity, the financial
status and the operating results of the Company.

• Interest rate risk

The Company is exposed to interest rate fluctuations risk through its bank deposits as well as through the aircraft finance leases agreed on a
floating interest rate. The Company’s policy is to continuously monitor its exposure to cash flow risk from interest rate fluctuations relating to
its aircraft finance leases.

• Jet fuel risk

The Company is exposed to the fluctuations of oil price which has a direct impact on the jet fuel price. To manage this risk the Company enters
into derivative contracts on oil products in order to hedge specific percentages of its projected jet fuel needs.

• Credit risk
The company monitors its trading receivables on a regular basis, so as to be protected against credit risk, and whenever needed, it assesses
their timely collection mainly through factoring.

• Liquidity /Cash flow risk

The prudent management of liquidity risk supposes sufficient cash balances. The Company manages the aforementioned risk by maintaining
adequate liquid securities and sufficient credit lines from the banks as well as from suppliers, always align to its operational, investment and
financial needs.

50
 V. Information regarding the main authorities and operation of the General Shareholders’ Meeting as well as
description of shareholders’ rights and ways of exercise.
Operation of the General Shareholders’ Meeting
The Board of Directors ensures that the preparation and the conduct of the General Shareholders’ Meeting supports the effective exercise
of shareholders’ rights. The shareholders are fully informed of all the issues related to their participation to the General Shareholders’
Meeting including the agenda and their rights during the course of the General Shareholder Meeting. The Board of Directors uses the General
Shareholders’ Meeting to promote a productive and open discussion between the Board and the company.

Specifically, with regards to the preparation of the General Shareholder Meeting and pursuant to the provisions of Law 3884/2010, the
Company publishes on its website at least 20 days prior to the General Shareholder Meeting both in Greek and in English, information related
to:

• The date, time and place of the General Shareholder Meeting.

• The basic rules and practices regarding the participation of the shareholders, including the right to introduce topics in the agenda and to
make enquiries as well as the deadline for the exercise of these rights.
• The voting procedure, the terms and conditions for proxy voting and the necessary forms and documents for proxy voting.
• The proposed agenda of the General Shareholder Meeting, including draft resolutions and any other accompanying documents.
• In case of election of Board of Directors members, the list of the proposed persons along with their resumes.
• The total number of shares and voting rights at the time of the convocation of the General Shareholder Meeting.

The Chairman of the Board of Directors, and/or the Vice Chairman and the Chief Executive Officer attend the General Shareholders’ Meeting in
order to provide all the necessary information to the shareholders regarding the items on the agenda as well as questions raised by them. The
Chairman of the General Shareholders’ Meeting ensures that adequate time is given for any questions raised.

Authorities of the General Shareholders’ Meeting

The General Shareholders’ Meeting is the supreme body of the Company and has the power to decide for every corporate affair. Its resolutions,
taken according to law, are obligatory for all the shareholders, including those who are absent or disagree.

The General Shareholders’ Meeting is vested the exclusive power to resolve on the following matters:

• Any matter submitted to it by the Board or by the persons who are entitled to convene the General Meeting according to law.
• Modification of the Articles of Association, including cases such as increase or decrease of the share capital, dissolution of the Company,
extension of its duration and merger with another company.
• Election of the Directors of the Company, election of the Auditors of the Company and specification of their remuneration.
• Approval or modification of the annual financial statements of the Company prepared by the Board and allocation of the net profits.
• Approval with nominal vote of the Board of Directors’ management and discharge of the members of the Board and of the auditors from any
liability after the approval of the annual financial statements. Members of the Board and the employees of the Company may participate in
the voting only on the basis of the shares held by them.
• The hearing of the auditors with respect to the audit of the books and records of the Company performed by them.
• The issuance of bond loans with the right to gain profits in accordance with art.3b of Law 2190/1920 and convertible bond loans.
• The appointment of liquidators in case of dissolution of the Company.
• The filling of actions against the members of the Board of Directors and the auditors for breach of duty in accordance with the applicable
laws and the Articles of the Company.

51
Shareholders’ Rights and ways of exercise
Every shareholder that is recorded by the custodian of the Company owning shares is entitled to attend and vote at the General Shareholders’
Meeting. For the shareholder to exercise the above rights there is no need to have its shares reserved or to follow a similar procedure. The
shareholder may freely authorise for representation another person.

Company’s shareholders’ rights are equivalent to their participation share in the Company’s paid share capital. Every share has all the rights
provided by law 2190/1920 as it has been amended and applies, as well as by the Company’s Articles of Association.

The Chairman, the Vice Chairman and the Managing Director are available to meet shareholders with significant share participation in the
Company to discuss corporate governance issues. In addition, the Chairman should ensure that the views of the shareholders are communicated
to the whole Board.

VI. Information regarding the composition and operation of the Board of Directors
Composition of the Board of Directors
The Board of Directors, acting collectively, is responsible for the management of the Company’s affairs to the benefit of the Company and its
shareholders, ensuring the implementation of the corporate strategy and the equal rights for all the shareholders. The Board is empowered to
decide for all matters related to the business affairs of the Company. The General Shareholders’ Meeting is responsible for all the other issues
that are excluded due to law or the Articles of Association.

The members of the Board of Directors are elected by the General Shareholders’ Meeting. The General Shareholders’ Meeting also decides
which members shall be executive, non-executive or independent non-executive.

The Board of Directors of Aegean Airlines S.A. is the custodian of the Principles of Corporate Governance of the Company. The Board of Directors
is composed of no less than seven (7) and no more than fifteen (15) members. The members of the Board shall be elected by the General
Shareholders’ Meeting with a secret vote to serve for a three year period which may be extended until the first annual General Meeting after
the expiry of their service term. Such an extension of time, however, may not exceed four years. The members of the Board of Directors, either
shareholders or not, may be always re-elected. The Board of Directors currently consists of three executive and nine non-executive members,
which include three independent non-executive members in accordance to law 3016/2002 for Corporate Governance. Executive members
perform the day-to-day management of the Company, whereas non-executive members are not involved in the Company’s management.

52
 The table below includes the members of the Board of Directors:

Name Capacity Date of appointment End

(most recent) of Term
1. Theodore Vassilakis Chairman, Executive Member 12/05/2015 11/05/2018
2. Eftichios Vassilakis Vice Chairman, Executive Member 12/05/2015 11/05/2018
3. Dimitrios Gerogiannis Managing Director, Executive Member 12/05/2015 11/05/2018
4. Georgios Vassilakis Non-Executive Member 12/05/2015 11/05/2018
5. Iakovos Georganas Independent Non-Executive Member 12/05/2015 11/05/2018
6. Anastasios David Non-Executive Member 12/05/2015 11/05/2018
7. Christos Ioannou Non-Executive Member 12/05/2015 11/05/2018
8. Achilleas Konstantakopoulos Non-Executive Member 12/05/2015 11/05/2018
9. Panagiotis Laskaridis Non-Executive Member 12/05/2015 11/05/2018
10. Alexandros Makridis Independent non-executive Member 12/05/2015 11/05/2018
11. Nikolaos – Georgios Nanopoulos Νon-executive Member 12/05/2015 11/05/2018
12. Victor Pisante Independent non-executive Member 12/05/2015 11/05/2018

Note: The Company’s Audit Committee consists of members with number 8, 10 and 11 of the list above.

A description of the Chairman’s and Chief Executive Officer’s duties and responsibilities follows:

Chairman of the Board of Directors

• Sets the daily Agenda, ensures the prompt operation of the Board of Directors, and calls the members of the Board of Directors in meetings
which himself leads. In his own capacity or after authorization by the Board of Directors, any member by the Board of Directors, staff or
lawyer of the Company may:
• Represent the Company in court or out of court
• Represent the Company against any authority
• In the case of obvious danger, without a decision by the Board of Directors, raise or defend against legal claims and proceedings, assign
plenipotentiaries and proceed to court or out of court actions to defend the interests of the Company. These actions are submitted to the
Board of Directors for approval.
• Assume all responsibilities assigned by the Board of Directors and sign contracts on behalf of the Company according to the relevant
authorisations given by the Board of Directors.

Chief Executive Officer

Chief Executive Officer is responsible for the implementation of the Company’s strategic targets and its day to day management. He is
responsible for the smooth, proper and effective operation of the Company according to its strategic targets, business plans and action
guidelines as those are determined by the decisions of the Board of Directors and the General Shareholders’ Meeting.

The Chief Executive Officer reports to the Company’s Board of Directors. He provides guidance on strategic actions and validates the important
decisions of the Company. He is the Head of all Company’s divisions and amongst others he is responsible for:

53
a) Strategy:
• Strategic decision making with respect to business strategy development, as well as significant investments.
• Defining the Company’s organisational plans.
• Ensuring the implementation of the Company’s decisions and informing the Board of Directors regarding Company’s matters.

b) Executive Guidance:
• Coordination and supervision of the top management so as to ensure effectiveness and efficiency for the Company’s smooth operation.
• Decision making or participation in the process of significant business decisions
• Defining the risk management policies, risk assessment and application of actions and procedures for their effective management.

c) Performance Management:
• Defining budget’s targets as well as determining annual performance targets and meeting the annual budget targets.
• Supervision of Company’s financial management
• Ensuring the procedures to meet targets and reach results.

d) Human Resources Development:

• Recruiting and providing guidance to the leading officers of the Company.
• Defining performance evaluation guidelines, as well as being responsible for the promotion, development and remuneration policy of the
Company’s officers.

Chief Executive Officer is responsible for the coordination of the Company’s business units and making proposals to the Board of Directors
regarding matters within its power.

Board of Directors meetings

The Board of Directors convenes in the Company’s registered office or elsewhere in Greece or abroad, anytime the law, the Articles of
Association or the business developments require so, on the date and time appointed by the President or the Vice-President, or if requested
so in written by at least two of its Board members. The meeting of the Board may be in the form of a teleconference in accordance with the
provisions of art.20 para.3 of Codified Law 2190/1920 observing the minimum technical security specifications provided by law for the validity
of the meeting.

The Chairman of the Board of Directors sets the daily agenda and calls the members of the Board of Directors in meetings which heads. The
Board of Directors may decide, by an absolute majority vote of the members who are personally present or represented, to assign fully or
partially the exercise of its rights and authorities which relate to the management, administration and representation of the Company to
one or more persons, irrespectively whether they are members of the Board or not. The title and authorization of those persons shall be
determined each time by the Board’s decision on their assignment.

A quorum shall be established if the half of the number of the Directors plus one are present or represented in the meetings of the Board, but
in no case the number of the Directors who are personally present may be less than three (3). For the purposes of determining the quorum
any fraction shall be omitted.

The Board of Directors shall validly resolve by an absolute majority vote of the members who are personally present or represented except
for the cases where a special majority is required. In case of equality of votes if the voting is effected by a show of hands it shall be repeated;
if it is secret, the making of a resolution shall be adjourned. In case of personal matters, the Board shall decide with secret vote with ballots.
Each member shall have one vote; if he represents an absent colleague, he shall have two votes. Director who is absent for any reason may
be represented by another Director duly appointed by a letter, telex, telegram or fax addressed to the Board of Directors. In no case a member
of the Board can represent more than one Director.

54
 VII. Information regarding the composition and operation of the Audit Committee
According to article 37 of Law 3693/2008 every listed company in the Athens Stock Exchange (“of public interest” according to the law) is
obliged to have an “Audit Committee” consisting of 3 Board of Directors’ members. Two of them must be non-executive members and the
other one a non-executive independent member.

The Company’s Audit Committee consists of the following Board of Directors’ members:

• Mr. Alexandros Makrides – independent non-executive member (Chairman of Audit Committee)

• Mr. Achilleas Constantakopoulos - non executive member (Member of Audit Committee)
• Mr. Nikolaos – Georgios Nanopoulos - non executive member (Member of Audit Committee)

The term of the Audit Committee is three years. Renewal of the term or modification of the Committee’s members’ composition is always
subject to decision by the Board of Directors.

The Audit Committee monitors and supervises the performance of internal audit by the Internal Audit department. It convenes on a regular
basis where the gathered audits’ findings of the Internal Audit department are evaluated and utilized.

The Audit Committee convenes upon request by its Chairman or in case of his absence or inconvenience by his representative who is autho-
rized to perform the Chairman’s duties. The Audit Committee shall validly resolve by an absolute majority vote of its members and in the case
of equal voting the Chairman’s vote supersedes.

EXPLANATORY REPORT OF THE BOARD OF DIRECTORS (article 4, paragraph 7 & 8 of Law 3556/2007)
1. Structure of the Company’s share capital
The Company’s share capital amounts to forty six million four hundred twenty one thousand and one hundred fifteen euros (€ 46,421,115),
divided into seventy one million four hundred seventeen thousand and one hundred common voting shares (71,417,100 shares), of a par
value of sixty five euro cents each (€ 0.65). All the shares are registered and listed for trading in the Securities Market of the Athens Stock
Exchange under the “Large Cap” classification.

2. Limits on transfer of Company shares

There are no restrictions set by the Company’s Articles of Association regarding the transfer of shares.

3. Significant direct or indirect holdings in accordance with the provisions of articles 9 – 11 of Law 3556/2007
As of 31.12.2015 the following investors held more than 5% of the Company’s voting rights: Theodore Vassilakis 35.40% (23.74% through
Evetrans S.A. and 11.66% through Autohellas S.A.), Alnesco Enterprices Company Limited 8.56%, Siana Enterprices Company Limited 8.56%
and Achilleas Constantakopoulos 5.19%.

4. Shares conferring special control rights

There are no Company shares that carry any special rights of control.

55
5. Limitations on voting rights
The Articles of Association make no provision for any limitations on voting rights.

6. Shareholder agreements which result to limitations in the transfer of shares or limitations to exercise voting rights
The Company is not aware of any Shareholder agreements which result to limitations in the transfer of shares or limitations to exercise voting
rights.

7. Rules governing the appointment and replacement of members of the Board of Directors and the amendment of the
Articles of Association
The members of the Board of Directors are elected from the General Shareholders’ Meeting, through a secret voting procedure, for a three
year term extended up to the Annual General Shareholders’ Meeting due in the term’s final year. The members may be shareholders or non-
shareholders and can be re-elected.

Replacement of a member can be authorised by at least 3 other members and is subject to the approval of the next General Shareholders’
Meeting.

The Board may consist of seven (7) up to fifteen (15) members.

8. Authority delegated to the BoD or certain members of the Board for the issue of new shares or acquisition of own shares
According to the provisions of article 13 par. 1 item b) of C.L. 2190/1920 and the article 5 of the Articles of Association, the Company’s Board
of Directors has the right, following a relevant decision by the General Shareholder’s Meeting that is subject to the publicity announcements
of article 7b of C.L. 2190/1920, to increase the Company’s share capital with the issuance of new shares, through a decision by the Board of
Directors that is made with a majority of at least two thirds (2/3) of its total members. In this case, Company’s share capital may be increased
by no more than the share capital amount paid up on the date when the Board of Directors was granted such power by the General Meeting.
This power of the Board of Directors may be renewed by the General Meeting for a period that may not exceed five year per instance of renewal.

9. Important agreements which are entered in force, amended or terminated in the event of change in the control of the
Company following a public offer
There are no agreements which enter into force, are amended or terminated in the event of change in the control of the Company following
a public offer.

10. Agreements that the Company has entered into with Board members or employees regarding compensation payments
in the case of resignation, dismissal without valid reason and termination of their office period or employment as a result
of a public offering.
The Company has no significant agreements with members of the Board of Directors or its employees providing for the payment of
compensation, especially in the case of resignation or dismissal without valid reason or termination of their period of office or employment
due to a public offer.

11. Location
The Company has established presence in 50 locations both in Greece and abroad for the provision of its services.

56
 The General Shareholders Assembly on 15.05.2015 has decided the following:
1. Approval of the Annual Report of the Board of Directors’ and the Independent’s Auditor report on the Financial Statements and
developments for the period 2014 (01.01.2014 – 31.12.2014).
2. The members of the Board of Directors and the Auditors of the Company were discharged from any responsibility regarding their actions
for the period ended at 31.12.2014.
3. Election of Mr. Vasilis Kaminaris (Α.Μ. S.Ο.Ε.L. 20411) as the Company’s external Auditor and Mr. Panagiotis Papazoglou (Α.Μ. S.Ο.Ε.L.
16631) as substitute Auditor, from the audit firm “ERNST & YOUNG (HELLAS) CERTIFIED AUDITORS ACCOUNTANTS S.A.”, for the period
2015 and approval of their fees.
4. The remuneration of the executive members of the Board of Directors, for their services to the Company for the period 2014 (01.01.2014
– 31.12.2014) was approved. Also their remuneration for the period 2015 (01.01.2015–31.12.2015) was preapproved.

Kifissia, March 21st 2016

Aegean Airlines S.A.

Chief Executive Officer

Dimitrios Gerogiannis

57
58
 C. INDEPENDENT AUDITOR’S REPORT

To the shareholders of “Aegean Airlines S.A.”

Report on the Financial Statements

We have audited the accompanying separate and consolidated financial statements of “Aegean Airlines S.A.”, which comprise the separate and
consolidated statement of financial position as at 31 December 2015, the separate and consolidated statement of comprehensive income,
statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies and other
explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these separate and consolidated financial statements in accordance
with International Financial Reporting Standards as endorsed by the European Union and for such internal controls as management determines
is necessary to enable the preparation of separate and consolidated financial statements that are free from material misstatement, whether
due to fraud or error.

Auditor's Responsibility
Our responsibility is to express an opinion on these separate and consolidated financial statements based on our audit. We conducted our
audit in accordance with International Standards of Auditing. Those standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance whether the separate and consolidated financial statements are free from material
misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the separate and consolidated financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of
the separate and consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation and fair presentation of the separate and consolidated financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall presentation of the separate and consolidated financial
statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

59
Opinion
In our opinion, the accompanying separate and consolidated financial statements present fairly, in all material respects, the financial posi-
tion of “Aegean Airlines S.A.” and its subsidiaries as at 31 December 2015, and of its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards as endorsed by the European Union.

Other Issue
The separate and consolidated financial statements of “Aegean Airlines S.A.” for the fiscal year ended at 31 December 2014 were audited by
another Auditor, who issued an unqualified opinion at 26 March 2015.

Report on Other Legal and Regulatory Requirements

a) The Directors’ Report includes a statement of corporate governance which contains the information required by paragraph 3d article 43a
of Codified Law 2190/1920.

b) We confirm that the information given in the Directors’ Report is consistent with the accompanying separate and consolidated financial
statements and complete in the context of the requirements of articles 43a and 37 of Codified Law 2190/1920.

Athens, 24 March 2016

ERNST & YOUNG (HELLAS) The Certified Auditor Accountant

Certified Auditors Accountants S.A. Vassilios Kaminaris

Chimarras 8b, 151 25, Maroussi Athens, Greece S.O.E.L. R.N. 20411
Company S.O.E.L. R.N. 107

60
 D. ANNUAL FINANCIAL STATEMENTS FOR THE PERIOD
1 JANUARY TO 31 DECEMBER 2015

TABLE OF CONTENTS

1.1 Financial Position of the Company as at 31.12.2015 62

1.2 Financial Position of the Group as at 31.12.2015 64
2.1 Statement of Comprehensive Income of the Company 66
2.2 Statement of Comprehensive Income of the Group 67
3.1 Statement of changes in Equity of the Company for the period ended at 31.12.2015 68
3.2 Statement of changes in Equity of the Group for the period ended at 31.12.2015 69
4.1 Cash Flow Statement of the Company for the period ended at 31.12.2015 70
4.2 Cash Flow Statement of the Group for the period ended at 31.12.2015 71
5.1 General information 72
5.2 Nature of operations 72
5.3 Basis of preparation of the annual financial statements 72
5.4 Standards, Interpretations and amendments to existing standards 73
5.5 Important accounting judgments, estimates and assumptions. 77
5.6 Summary of accounting policies 79
5.7 Foreign currency translation 79
5.8 Revenues and expenses recognition 79
5.9 Intangible assets 79
5.10 Tangible assets 80
5.11 Impairment of tangible and intangible assets 80
5.12 Leases 80
5.13 Financial assets 81
5.14 Inventories 84
5.15 Cash and cash equivalents 84
5.16 Share capital 84
5.17 Employee benefits due to retirement and other short term benefits to employees 84
5.18 Financial liabilities 85
5.19 Income tax & deferred tax 85
5.20 Provisions, contingent liabilities and contingent assets 86
5.21 Operating Segments 86
5.22 Modification previous year financial statements 86
5.23 Intangible assets 87
5.24 Tangible assets 87
5.25 Advances for assets’ acquisition 92
5.26 Investments in subsidiaries 92
5.27 Deferred tax assets/liabilities 92
5.28 Other long term assets 93
5.29 Financial Assets available for Sale 93
5.30 Inventories 93
5.31 Customers and other trade receivables 94
5.32 Prepayments 95
5.33 Cash and cash equivalents – Restricted Cash 95

61
5.34 Share capital 95
5.35 Share premium 96
5.36 Other reserves 96
5.37 Liabilities from finance leases 97
5.38 Provisions for employee retirement benefits 97
5.39 Suppliers and other liabilities 99
5.40 Provisions 99
5.41 Other long term liabilities 100
5.42 Other short term liabilities 100
5.43 Liabilities from tickets sold but not flown 101
5.44 Accrued expenses 101
5.45 Financial Derivatives 101
5.46 Revenue 102
5.47 Other income 102
5.48 Consumption of materials and services 103
5.49 Employee Costs 103
5.50 Financial income / expense 104
5.51 Income tax 104
5.52 Commitments 105
5.53 Contingent assets and liabilities 105
5.54 Loans 105
5.55 Related parties transactions 106
5.56 Transactions with directors and Board of Directors members 106
5.57 Earnings per share 107
5.58 Risk management 107
5.59 Other events 112
5.60 Subsequent events 112
5.61 Auditor’s remuneration  112

62
 amounts in thousand €

1.1 Financial Position of the Company as at 31.12.2015

  Note 31/12/2015 31/12/2014

ASSETS
Non current assets
Intangible assets 5.23 28.973,11 28.474,78
Tangible assets 5.24 103.867,93 78.597,99
Advances for assets acquisition 5.25 30.994,76 56.024,47
Investments in subsidiaries 5.26 72.416,56 62.416,56
Deferred tax assets 5.27 12.742,96 11.905,42
Other long term assets 5.28 19.347,34 14.151,27
Hedging derivatives 5.45 232,68 10.631,83
Financial Assets available for Sale 5.29 2.901,09 0,00
Total non current assets 271.476,43 262.202,32
Current assets
Inventories 5.30 8.615,96 8.272,45
Customers and other trade receivables 5.31 111.712,32 78.429,03
Advances 5.32 12.768,04 8.688,28
Financial Assets available for Sale 5.29 39.609,11 10.903,27
Hedging derivatives 5.45 34.072,06 24.139,12
Restricted Cash 5.33 36.392,03 16.043,15
Cash and cash equivalents 5.33 105.654,65 171.511,50
Total current assets 348.824,17 317.986,80
TOTAL ASSETS 620.300,60 580.189,12
EQUITY
Share capital 5.34 46.421,11 46.421,11
Share premium account 5.35 72.775,98 72.775,98
Other reserves 5.36 (13.379,55) (1.443,54)
Retained profit 84.356,98 83.853,72
Total equity 190.174,52 201.607,27

63
amounts in thousand €

LIABILITIES Note 31/12/2015 31/12/2014

Long term liabilities
Finance lease contracts liabilities 5.37 45.175,34 49.649,50
Derivative contracts liabilities 5.45 12.555,62 5.142,25
Liabilities for retirement benefits obligations 5.38 8.096,53 6.236,20
Provisions 5.40b 17.568,50 22.450,54
Other long term liabilities 5.41 20.250,00 25.480,13
Total long term liabilities 103.645,99 108.958,62
Short term liabilities
Suppliers 5.39 78.381,11 61.286,49
Long term finance leases liabilities payable next year 5.37 10.196,61 8.836,13
Other short term liabilities 5.42 70.972,13 64.439,76
Liabilities from tickets sold but not flown 5.43 80.304,29 60.841,76
Accrued expenses 5.44 29.643,81 22.691,85
Hedging derivatives 5.45 48.940,30 35.171,21
Current tax income 7.822,26 15.417,35
Provisions 5.40c 219,58 938,68
Total short term liabilities 326.480,09 269.623,23
Total liabilities 430.126,08 378.581,85
TOTAL EQUITY AND LIABILITIES 620.300,60 580.189,12

64
 amounts in thousand €

1.2 Financial Position of the Group as at 31.12.2015

  Note 31/12/2015 31/12/2014 1/1/2014

Revised Revised
ASSETS
Non current assets
Intangible assets 5.23 47.602,09 47.908,42 47.437,49
Goodwill 39.756,30 39.756,30 39.756,30
Tangible assets 5.24 103.937,97 80.488,90 81.004,81
Advances for assets acquisition 5.25 30.994,76 56.024,47 21.135,44
Financial assets available for sale 5.29 8.901,82 0,00 0,00
Deferred tax assets 5.27 16.732,90 21.158,79 19.182,27
Other long term assets 5.28 25.998,48 19.984,96 15.909,09
Hedging derivatives 5.45 232,68 10.631,83 113,88
Total non current assets 274.157,00 275.953,67 224.539,28
Current assets
Inventories 5.30 13.181,67 13.237,74 10.951,28
Customers and other trade receivables 5.31 104.475,87 87.648,24 76.944,55
Advances 5.32 14.013,43 10.602,27 4.928,33
Financial Assets available for sale 5.29 39.609,11 10.903,27 17.296,46
Hedging derivatives 5.45 34.072,06 24.139,12 2.146,32
Restricted Cash 5.33 36.392,03 16.045,15 0,00
Cash and cash equivalents 5.33 152.932,85 191.436,88 226.876,98
Total current assets 394.677,02 354.012,67 339.143,92
TOTAL ASSETS 668.834,02 629.966,34 563.683,20
EQUITY
Share capital 5.34 46.421,11 46.421,11 46.421,11
Share premium account 5.35 72.775,98 72.775,98 144.774,41
Other reserves 5.36 (13.187,28 ) (1.443,53) 1.873,02
Retained profit 115.964,62 101.238,75 22.135,76
Total equity 221.974,43 218.992,31 215.204,30

65
amounts in thousand €

Note 31/12/2015 31/12/2014 1/1/2014

Revised Revised
LIABILITIES
Long term liabilities
Finance lease contracts liabilities 5.37 45.175,34 49.649,50 51.492,30
Hedging derivatives 5.45 12.555,62 5.142,25 1.696,74
Liabilities for retirement
benefits obligations 5.38 8.405,35 6.600,34 7.508,50
Provisions 5.40b 19.915,62 29.200,89 34.412,83
Other long term liabilities 5.41 27.832,85 34.583,64 38.532,44
Total long term liabilities 113.884,78 125.176,62 133.642,81
Short term liabilities
Suppliers 5.39 77.123,21 63.437,72 53.565,20
Long term finance leases
liabilities payable next year 5.37 10.196,61 8.836,13 7.556,89
Other short term liabilities 5.42 74.495,07 70.494,90 65.106,2
Liabilities from tickets
sold but not flown 5.43 83.961,75 65.728,82 45.893,52
Accrued expenses 5.44 28.818,35 23.472,72 21.587,24
Hedging derivatives 5.45 48.940,30 35.171,21 3.557,11
Current tax income 7.822,27 15.417,38 10.217,71
Provisions 5.40c 1.617,25 3.238,53 7.352,18
Total short term liabilities 332.974,81 285.797,41 214.836,09
Total liabilities 446.859,59 410.974,03 348.478,90
TOTAL EQUITY AND LIABILITIES 668.834,02 629.966,34 563.683,20

66
 amounts in thousand €

2.1 Statement of Comprehensive Income of the Company for the period that ended at 31.12.2015

Note 01/01 -31/12/2015 01/01 -31/12/2014

Revenue 5.46 921.710,09 850.891,09
Other operating income 5.47 20.490,02 11.972,07
Personnel expenses 5.49 (95.485,03) (79.992,47)
Depreciation (12.720,86) (11.058,70)
Consumption of goods and services 5.48 (754.465,89) (688.307,58)
Financial income 5.50 37.205,19 24.715,38
Financial expense 5.50 (35.638,46) (36.442,96)
Profit before tax 81.095,06 71.776,83
Income tax 5.51 (26.847,74) (14.910,45)
Profit after tax 54.247,32 56.866,38

Note 01/01 - 31/12/2015 01/01 -31/12/2014

Other comprehensive income
(a) Transferred to the income statement
Cash flow hedging
Reclassification of Profit / (Loss) 5.36 26.799,64 1.963,27
Net change in fair value of cash flow hedges 5.36 (48.765,39) (4.512,12)
Income tax 6.536,34 662,70
Available for sale financial assets
Reclassification of Profit / (Loss) 5.36 0,00 (1.136,00)
Net change in fair value of financial assets 915,60 (749,19)
Income tax 5.36 (265,52) 490,15
Total (a) (14.779,33) (3.281,19)
(b) Non-transferred in the income statement
Net actuarial profit from retirement benefit plans (1.181,97) (1.930,21)
Deferred tax 274,08 501,85
Total (b) (907,89) (1.428,36)
Other comprehensive income after taxes (15.687,22) (4.709,55)
Total comprehensive income after taxes 38.560,10 52.156,83

67
amounts in thousand €

2.2 Statement of Comprehensive Income of the Group for the period that ended at 31.12.2015

Note 01/01 -31/12/2015 01/01 -31/12/2014

Revenue 5.46 982.963,61 911.793,70
Other operating income 5.47 18.827,62 9.745,20
Personnel expenses 5.49 (109.389,66) (100.466,74)
Depreciation (14.010,00) (12.551,20)
Consumption of goods and services 5.48 (781.187,38) (702.281,58)
Financial income 5.50 42.116,57 26.185,18
Financial expense 5.50 (39.003,87) (37.533,87)
Profit before tax 100.316,92 94.890,69
Income tax 5.51 (31.922,51) (14.449,25)
Profit after tax 68.394,41 80.441,44

Note 01/01 - 31/12/2015 01/01 -31/12/2014

Other comprehensive income
(a) Transferred to the income statement
Cash flow hedging
Reclassification of Profit / (Loss) 5.36 26.799,64 1.963,27
Net change in fair value of cash flow hedges 5.36 (48.765,39) (4.512,12)
Income tax 6.536,34 662,70
Available for sale financial assets
Reclassification of Profit / (Loss) 5.36 0,00 (1.136,00)
Net change in fair value of financial assets 1.231,33 (749,19)
Income tax 5.36 (388,99) 490,15
Total (a) (14.587,07) (3.281,19)
(b) Non-transferred in the income statement
Net actuarial profit from retirement benefit plans (1.037,47) (1.856,49)
Deferred tax 205,10 482,68
Total (b) (832,37) (1.373,81)
Other comprehensive income for the period after taxes (15.419,44) (4.655,00)
Total comprehensive income 52.974,97 75.786,44
Basic and diluted earnings per share in € 0,9577 1,1264
Weighted number of shares 71.417.100 71.417.100

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 amounts in thousand €

3.1 Statement of changes in Equity of the Company for the period ended at 31.12.2015

Cash flow
Issued Share Reserves Available Accumulated Total
hedging
capital premium (other) for Sale Profit/(Loss) equity
reserves

Balance at 1 January 2014 46.421,11 144.744,41 (2.361,49) 2.989,77 1.244,74 28.380,33 221.448,87

Profit 56.866,38 56.866,384

Other comprehensive income (1.886,15) (1.395,04) (1.428,36) (4.709,55)

Totalr comprehensive income (1.886,15) (1.395,04) 55.438,02 52.156,83

Transfer of reserves (35,37) 35,37

Share capital
increase through
71.417,10 (71.417,10)
capitalization of
reserves (Note 5.35)

Reduction of
(71.417,10) 71.417,10
share capital (Note 5.35)
Share capital
(581,33) (581,33)
increase expenses

Balance on 31 December 2014 46.421,11 72.775,98 (4.247,64) 2.954,40 (150,30) 83.853,72 201.607,27

Balance on 1 January 2015 46.421,11 72.775,98 (4.247,64) 2.954,40 (150,30) 83.853,72 201.607,27

Profit 54.247,32 54.247,32

Other comprehensive income (15.429,41) 650,08 (907,89) (15.687,22)

Total comprehensive income (15.429,41) 650,08 53.339,43 38.560,10

Dividends Paid (49.992,85) (49.992,85)

Reserves 2.843,32 (2.843,32)

Balance on 31 December 2015 46.421,11 72.775,98 (19.677,05) 5.797,72 499,78 84.356,98 190.174,52

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 amounts in thousand €

3.2 Statement of changes in Equity of the Group for the period ended at 31.12.2015

Cash flow
Issued Share Reserves Available Accumulated Total
hedging
capital premium (other) for Sale Profit /(Loss) equity
reserves

Balance at 1 January 2014

46.421,11 144.774,41 (2.361,48) 2.989,76 1.244,74 19.808,72 212.877,26
(published)
Change of subsidiary
2.327,04 2.327,04
brand value (Note 5.22)
Balance at 1 January 2014
46.421,11 144.774,41 (2.361,48) 2.989,76 1.244,74 22.135,76 215.204,30
(modified)
Profit 80.441,44 80.441,44

Other comprehensive income (1.886,15) (1.395,04) (1.373,81) (4.655,00)

Total comprehensive income (1.886,15) (1.395,04) 79.067,63 75.067,44

Transfer of reserves (35,36) 35,36

Share capital increase through
capitalization of reserves 71.417,10 (71.417,10)
(Note 5.35)
Reduction of
(71.417,10) (71.417,10)
share capital (Note 5.35)
Share capital
(581,33) (581,33)
increase expenses  
Balance on 31 December 2015 46.421,11 72.775,98 (4.247,63) 2.954,40 (150,30) 101.238,75 218.992,31

Balance on 1 January 2015

46.421,11 72.775,98 (4.247,63) 2.954,40 (150,30) 101.238,75 218.992,31
(modified)
Profit 68.394,41 68.394,41

Other comprehensive income (15.429,41) 842,34 (832,37) (15.419,44)

Total comprehensive income (15.429,41) 842,34 67.562,04 52.974,97

Dividends Paid (49.992,85) (49.992,85)
Reserves 232 2.843,32 (2.843,32)
Balance on 31 December 2015 46.421,11 72.775,98 (19.677,04) 5.797,72 692,04 115.964,62 221.974,43

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 amounts in thousand €

4.1 Cash Flow Statement of the Company for the period ended at 31.12.2015

31/12/2015 31/12/2014
Cash flows from operating activities    
Profit before tax 81.095,06 71.776,83
Adjustments for:  
Depreciation of tangible assets 12.720,86 11.058,70
Impairment of tangible assets 0,00 555,14
Provisions for aircraft maintenance & bad debts (16.381,49) 4.480,02
Foreign currency exchange (gains) / losses (6.282,48) 8.876,40
(Profit) / loss from investing activities (1.320,63) (3.831,66)
Finance Cost 5.818,58 6.681,26
Cash flows from operating activities before changes in working capital 75.649,90 99.596,69
Changes in working capital
(Increase) in inventories (151,34) (1.672,03)
(Increase) in receivables (42.123,63) (45.591,32)
Increase in liabilities 42.251,31 64.605,80
Total changes in working capital (23,66) 17.342,45
Interest expenses paid (2.901,22) (2.970,85)
Income tax paid (18.429,30) (17.137,18)
Net cash flows from operating activities 54.295,72 96.831,11
Cash flows from investing activities
Purchases of tangible assets (20.090,62) (13.498,95)
Sales of tangible assets 172,15 19,46
Advances for the acquisition of tangible assets 30.622,38 (34.889,03)
Purchases of financial assets (43.501,27) (3.492,50)
Sales of financial assets 12.301,60 9.136,50
Investments in subsidiaries (Note 5.26) (60.400,01) (10.400,01)
Capital return from subsidiary share capital reduction (Note 5.26) 40.000,00 0,00
Interest and other financial income received 703,96 2.167,49
Net cash flows from investing activities (40.191,81) (50.957,04)
Cash flows from financing activities
Dividends paid (49.885,33) 0,00
Capital return 0,00 (71.234.87)
Capital return expenses 0,00 (785,59)
Financial leases capital paid (9.726,55) (7.846,39)
Net cash flows from financing activities (59.611,88) (79.866,85)
Net (decrease)/increase in cash and cash equivalents (45.507,97) (33.992,77)
Cash, cash equivalents & restricted cash at the beginning of the period 187.554,65 221.547,42
Cash, cash equivalents & restricted cash at the end of the period 142.046,68 187.554,65

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amounts in thousand €

4.2 Cash Flow Statement of the Group for the period ended at 31.12.2015

31/12/2015 31/12/2014
Cash flows from operating activities
Profit before tax 100.316,89 94.890,70
Adjustments for:
Depreciation of tangible assets 14.010,00 12.551,20
Impairment of tangible assets (326,27) 553,96
Provisions for aircraft maintenance & bad debts (18.007,79) 2.718,29
Foreign currency exchange (gains) / losses (7.850,80) 8.431,95
(Profit) / loss from investing activities (1.351,55) (3.996,83)
Finance Cost 5.869,81 6.955,76
Cash flows from operating activities before changes in working capital 92.660,29 122.105,03
Changes in working capital
(Increase)/Decrease in inventories 248,24 (1.647,69)
(Increase) in receivables (29.890,48) (25.033,14)
Increase in liabilities 28.217,95 36.472,37
Total changes in working capital (1.424,29) 9.791,54
Interest expenses paid (2.853,76) (3.245,35)
Income tax paid (18.429,30) (17.137,18)
Net cash flows from operating activities 69.952,95 111.514,04
Cash flows from investing activities
Purchases of tangible assets (20.236,51) (13.698,70)
Sales of tangible assets 1.980,71 19,46
Advances for the acquisition of tangible assets 30.622,38 (34.889,03)
Purchases of financial assets (43.501,27) (3.492,50)
Sales of financial assets 12.301,60 9.136,50
Investments in subsidiaries (10.400,01) (10.400,01)
Interest and other financial income received 734,87 2.282,13
Net cash flows from investing activities (28.498,23) (51.042,15)
Cash flows from financing activities
Dividends paid (49.885,33) 0,00
Capital return 0,00 (71.234.87)
Capital return expenses 0,00 (785,59)
Financial leases capital paid (9.726,54) (7.846,39)
Net cash flows from financing activities (59.611,87) (79.866,85)
Net (decrease)/increase in cash and cash equivalents (18.157,15) (19.394,95)
Cash, cash equivalents & restricted cash at the beginning of the period 207.482,03 226.876,98
Cash, cash equivalents & restricted cash at the end of the period 189.324,88 207.482,03

72
 5. NOTES TO THE INTERIM FINANCIAL STATEMENTS
amounts in thousand €

5.1 General information

The Company AEGEAN AIRLINES S.A. is a Societe Anonyme airline Company under the discreet title ΑEGEAN AIRLINES, which bears the title of
AEGEAN AIRLINES S.A. in its international transactions. The Company’s duration has been defined until 31/12/2044 and can be extended after
that following the decision of the General Shareholders Meeting. The Company’s registered address is in the Municipality of Kifissia, Attiki (31
Viltanioti St. PC 145 64).

The financial statements for the period that ended in the 31st December 2015 have been prepared in accordance with International
Financial Reporting Standards (IFRS) as they have been adopted by the European Union and have been approved by the Board of Directors
of the Company on March 21st 2016 and are subject to approval of the General Shareholders Meeting that will take place within the first
half of 2016.

5.2 Nature of operations

The Company and the Group operate in the sector of public airline transportations, providing transport of passengers and goods inside and
outside the Greek territory, conducting scheduled and unscheduled flights. At the same time, they render aviation services, technical support
and ground handling aircraft services. Indicatively, the Company’s and the Group’s objectives include among others the following activities/
operations:
a. Participation in any type of local or foreign company of similar nature of operations
b. Establishment of subsidiaries and agencies
c. Import, trade, leasing of aircraft and spare parts.

5.3 Basis of preparation of the annual financial statements

The Company’s financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), as adopted
by EU. The financial statements have been prepared under the historical cost principle except for certain categories of assets and liabilities
where fair values are used as stated in the relevant notes. Financial statements are presented in euro, except if stated otherwise.

The financial statements provide comparative figures for the previous period. Additionally, the Group presents the statement of financial
position of the beginning of the comparative period when a retrospective application of an accounting policy or amendment takes place. The
presentation of the financial position of 01/01/2014 is done due to the correction of the Olympic brand value as discussed in Note 5.22.

Basis of consolidation
The consolidated financial statements include the financial statements of the parent company and the subsidiaries in which it has control.
Control when the parent company has the power to determine the decisions regarding the financial and operating policies of an entity in
order to have a benefit from them. The subsidiaries (companies in which the Group directly or indirectly controls more than 50% of the votes
or otherwise controls the administration) have been consolidated. Subsidiaries are consolidated from the date on which effective control is
transferred to the Group and cease to be consolidated from the date on which control ceases.

All intragroup transactions and balances have been eliminated in the consolidated financial statements. Where necessary, accounting policies
of subsidiaries have been amended to ensure consistency with the policies adopted by the Group.

The financial statements of subsidiaries are prepared on the same date and with the same accounting principles as the financial statements
of the parent. Intra-group transactions (including investments), balances and unrealized gains on transactions between Group companies are
eliminated. Subsidiaries are fully consolidated from the date on which control is taken and cease to be consolidated from the date on which
control is transferred outside the Group. Losses are allocated to non-controlling interests even if the balance becomes negative. Transactions
that lead to change in ownership in subsidiaries are recognized in shareholders’ equity. The results of subsidiaries acquired or sold during the
financial period are included in the consolidated statement of comprehensive income from or up to the date of acquisition or sale, respectively.

73
amounts in thousand €

Business combinations and goodwill

A business combination is a transaction or other event in which an acquirer obtains control of one or more businesses. A company is defined
as a set of activities and assets that can be managed for the purpose of creation of benefits to the owners.
If the acquired assets are not a business, the transaction is accounted for as an acquisition of an asset and the acquisition cost is allocated to
assets and liabilities, based on their relative fair values at the acquisition date.
Business combinations are accounted with the acquisition method. The cost of an acquisition is the fair value of the assets acquired, equity
issued and liabilities assumed at the date of exchange, plus the amount of non-controlling interest measured in, for each combination, either
at fair value or at the proportion of non-controlling interest at fair value of the net identifiable assets acquired. Acquisition-related costs are
expensed as incurred. If the cost of acquisition is less than the fair value of the net identifiable assets acquired, the difference is recognized
directly in the income statement.
Goodwill on acquisitions of subsidiaries is recorded as an intangible asset. Goodwill is not amortized but is subject to at least annual testing for
impairment. Thus, after initial recognition, goodwill is measured at cost less any accumulated impairment losses. For impairment testing purposes,
goodwill is allocated, at the acquisition date, to each cash-generating unit that is expected to benefit from the combination. The impairment test
is performed by comparing the recoverable amount of the unit with the carrying amount of each unit including the goodwill allocated to this unit.
The recoverable amount is the higher of fair value less any costs to sell and the unit value in use. The value in use is determined by discounting
future cash flows with an appropriate discount rate. An impairment loss recognized for goodwill is not reversed in subsequent periods. Gains and
losses on the disposal of subsidiaries are determined taking into account the goodwill relating to the entity sold.

Investments in subsidiaries
In the financial statements of the parent company, investments in subsidiaries are valued at cost of acquisition less any accumulated
impairment losses. The impairment test is carried out whenever there is any indication of impairment based on the provisions of IAS 36
"Impairment of Assets".

5.4 Standards, Interpretations and amendments to existing standards

A) Changes in accounting policies and disclosures
The accounting policies adopted are consistent with those of the previous financial year except for the following amended IFRSs which have
been adopted by the Group/Company as of 1 January 2015:

Annual Improvements to IFRSs 2011 – 2013 Cycle

• The IASB has issued the Annual Improvements to IFRSs 2011 – 2013 Cycle, which is a collection of amendments to IFRSs. The
amendments are effective for annual periods beginning on or after 1 January 2015. Management has assessed that those amendments do
not have an important impact in Group’s financial statements

· IFRS 3 Business Combinations: This improvement clarifies that IFRS 3 excludes from its scope the accounting for the formation of a
joint arrangement in the financial statements of the joint arrangement itself.

· IFRS 13 Fair Value Measurement: This improvement clarifies that the scope of the portfolio exception defined in paragraph 52 of
IFRS 13 includes all contracts accounted for within the scope of IAS 39 Financial Instruments: Recognition and Measurement or IFRS
9 Financial Instruments, regardless of whether they meet the definition of financial assets or financial liabilities as defined in IAS 32
Financial Instruments: Presentation.

· IAS 40 Investment Properties: This improvement clarifies that determining whether a specific transaction meets the definition of both
a business combination as defined in IFRS 3 Business Combinations and investment property as defined in IAS 40 Investment Property
requires the separate application of both standards independently of each other.

74
 amounts in thousand €

B) Standards issued but not yet effective and neither the Company nor the Group have early adopted
• IAS 16 Property, Plant & Equipment and IAS 38 Intangible assets (Amendment): Clarification of Acceptable Methods of
Depreciation and Amortization
The amendment is effective for annual periods beginning on or after 1 January 2016. The amendment provides additional guidance on how
the depreciation or amortization of property, plant and equipment and intangible assets should be calculated. This amendment clarifies the
principle in IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets that revenue reflects a pattern of economic benefits that are
generated from operating a business (of which the asset is part) rather than the economic benefits that are consumed through use of the
asset. As a result, the ratio of revenue generated to total revenue expected to be generated cannot be used to depreciate property, plant
and equipment and may only be used in very limited circumstances to amortize intangible assets. Management has assessed that the new
standard will not have an important impact in Group’s financial statements.

• IAS 19 Defined Benefit Plans (Amended): Employee Contributions

The amendment is effective for annual periods beginning on or after 1 February 2015. The amendment applies to contributions from
employees or third parties to defined benefit plans. The objective of the amendment is to simplify the accounting for contributions that
are independent of the number of years of employee service, for example, employee contributions that are calculated according to a fixed
percentage of salary. Management has assessed that the new standard or amendments/revisions of the standard or interpretations of the
standard do not apply for the Group’s financial statements.

• IFRS 9 Financial Instruments: Classification and Measurement

The standard is effective for annual periods beginning on or after 1 January 2018, with early application permitted. The final version of
IFRS 9 Financial Instruments reflects all phases of the financial instruments project and replaces IAS 39 Financial Instruments: Recognition
and Measurement and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement,
impairment, and hedge accounting. Management has assessed that the new standard will not have an important impact in Group’s financial
statements, that has not been measured yet.

• IFRS 11 Joint arrangements (Amendment): Accounting for Acquisitions of Interests in Joint Operations
The amendment is effective for annual periods beginning on or after 1 January 2016. IFRS 11 addresses the accounting for interests in joint
ventures and joint operations. The amendment adds new guidance on how to account for the acquisition of an interest in a joint operation
that constitutes a business in accordance with IFRS and specifies the appropriate accounting treatment for such acquisitions. Management
has assessed that the new standard does not apply in Group’s financial statements.

• IFRS 15 Revenue from Contracts with Customers

The standard is effective for annual periods beginning on or after 1 January 2018. IFRS 15 establishes a five-step model that will apply to
revenue earned from a contract with a customer (with limited exceptions), regardless of the type of revenue transaction or the industry. The
standard’s requirements will also apply to the recognition and measurement of gains and losses on the sale of some non-financial assets
that are not an output of the entity’s ordinary activities (e.g., sales of property, plant and equipment or intangibles). Extensive disclosures
will be required, including disaggregation of total revenue; information about performance obligations; changes in contract asset and liability
account balances between periods and key judgments and estimates. The standard has not been yet endorsed by the EU. Management is in
the process of assessing the standard’s impact in Group’s financial statements.

• IAS 27 Separate Financial Statements (amended)

The amendment is effective for annual periods beginning on or after 1 January 2016. This amendment will allow entities to use the equity
method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements and will help some
jurisdictions move to IFRS for separate financial statements, reducing compliance costs without reducing the information available to
investors. Management has assessed that the new standard or amendments/revisions of the standard or interpretations of the standard do
not have an important impact in Group’s financial statements.

75
amounts in thousand €

• IAS 1: Disclosure Initiative (Amendment)

The amendments to IAS 1 Presentation of Financial Statements further encourage companies to apply professional judgment in determining
what information to disclose and how to structure it in their financial statements. The amendments are effective for annual periods beginning
on or after 1 January 2016. The narrow-focus amendments to IAS clarify, rather than significantly change, existing IAS 1 requirements. The
amendments relate to materiality, order of the notes, subtotals and disaggregation, accounting policies and presentation of items of other
comprehensive income (OCI) arising from equity accounted Investments. Management has assessed that the new standard or amendments/
revisions of the standard or interpretations of the standard do not have an important impact in Group’s financial statements.

• The IASB has issued the Annual Improvements to IFRSs 2010 – 2012 Cycle,
which is a collection of amendments to IFRSs.The amendments are effective for annual periods beginning on or after 1 February 2015.
Management has assessed that those amendments do not have an important impact in Group’s financial statements

· IFRS 2 Share-based Payment: This improvement amends the definitions of 'vesting condition' and 'market condition' and adds definitions
for 'performance condition' and 'service condition' (which were previously part of the definition of 'vesting condition').

· IFRS 3 Business combinations: This improvement clarifies that contingent consideration in a business acquisition that is not classified as
equity is subsequently measured at fair value through profit or loss whether or not it falls within the scope of IFRS 9 Financial Instruments.

· IFRS 8 Operating Segments: This improvement requires an entity to disclose the judgments made by management in applying
the aggregation criteria to operating segments and clarifies that an entity shall only provide reconciliations of the total of the reportable
segments' assets to the entity's assets if the segment assets are reported regularly.

· IFRS 13 Fair Value Measurement: This improvement in the Basis of Conclusion of IFRS 13 clarifies that issuing IFRS 13 and amending
IFRS 9 and IAS 39 did not remove the ability to measure short-term receivables and payables with no stated interest rate at their invoice
amounts without discounting if the effect of not discounting is immaterial.

· IAS 16 Property Plant & Equipment: The amendment clarifies that when an item of property, plant and equipment is revalued, the
gross carrying amount is adjusted in a manner that is consistent with the revaluation of the carrying amount.

· IAS 24 Related Party Disclosures: The amendment clarifies that an entity providing key management personnel services to the
reporting entity or to the parent of the reporting entity is a related party of the reporting entity.

· IAS 38 Intangible Assets: The amendment clarifies that when an intangible asset is revalued the gross carrying amount is adjusted in a
manner that is consistent with the revaluation of the carrying amount.

• The IASB has issued the Annual Improvements to IFRSs 2012 – 2014 Cycle, which is a collection of amendments to IFRSs. The
amendments are effective for annual periods beginning on or after 1 January 2016. Management has assessed that those amendments do
not have an important impact in Group’s financial statements

· IFRS 5 Non-current Assets: Held for Sale and Discontinued Operations: The amendment clarifies that changing from one of the disposal
methods to the other (through sale or through distribution to the owners) should not be considered to be a new plan of disposal, rather it
is a continuation of the original plan. There is therefore no interruption of the application of the requirements in IFRS 5. The amendment
also clarifies that changing the disposal method does not change the date of classification.

· IFRS 7 Financial Instruments: Disclosures: The amendment clarifies that a servicing contract that includes a fee can constitute
continuing involvement in a financial asset. Also, the amendment clarifies that the IFRS 7 disclosures relating to the offsetting of financial
assets and financial liabilities are not required in the condensed interim financial report.

76
 amounts in thousand €

· IAS 19 Employee Benefits: The amendment clarifies that market depth of high quality corporate bonds is assessed based on the
currency in which the obligation is denominated, rather than the country where the obligation is located. When there is no deep market
for high quality corporate bonds in that currency, government bond rates must be used.

· IAS 34 Interim Financial Reporting: The amendment clarifies that the required interim disclosures must either be in the interim
financial statements or incorporated by cross-reference between the interim financial statements and wherever they are included within
the greater interim financial report (e.g., in the management commentary or risk report). The Board specified that the other information
within the interim financial report must be available to users on the same terms as the interim financial statements and at the same time.
If users do not have access to the other information in this manner, then the interim financial report is incomplete.

• IFRS 16: Leases

• The standard is effective for annual periods beginning on or after 1 January 2019. IFRS 16 sets out the principles for the recognition,
measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’).
The new standard requires lessees to recognize most leases on their financial statements. Lessees will have a single accounting model
for all leases, with certain exemptions. Lessor accounting is substantially unchanged. The standard has not been yet endorsed by the EU.
Management has assessed that the new standard or amendments/revisions of the standard or interpretations of the standard will have an
important impact in Group’s financial statements which has not been measured yet.

• IAS 12 Income taxes (Amendments): Recognition of Deferred Tax Assets for Unrealized Losses
The amendments are effective for annual periods beginning on or after 1 January 2017, with early application permitted. The objective of these
amendments is to clarify the accounting for deferred tax assets for unrealized losses on debt instruments measured at fair value. For example,
the amendments clarify the accounting for deferred tax assets when an entity is not allowed to deduct unrealized losses for tax purposes or
when it has the ability and intention to hold the debt instruments until the unrealized loss reverses. Management has assessed that these
amendments will not affect significantly the financial statements of the Group.

• IAS 7 Statement of Cash Flows (Amendments): Disclosure Initiative

The amendments are effective for annual periods beginning on or after 1 January 2017, with earlier application permitted. The objective of
these amendments is to enable users of financial statements to evaluate changes in liabilities arising from financing activities. The amend-
ments will require entities to provide disclosures that enable investors to evaluate changes in liabilities arising from financing activities, in-
cluding changes arising from cash flows and non-cash changes. These amendments have not yet been endorsed by the EU. Management has
assessed that these amendments will not affect significantly the financial statements of the Group.

77
amounts in thousand €

5.5 Important accounting judgments, estimates and assumptions.

The preparation of financial statements according to International Financial Reporting Standards (IFRS) requires from management the
formulation of judgments, assumptions and estimates that affect assets, liabilities and related disclosures at the reporting date of the financial
statements. They also affect the disclosures of contingent assets and liabilities at the reporting date as well as the published revenues and
expenses during the period. Actual results may differ from those estimated. Estimates and judgments are based on experience from the past
as well as other factors including expectations for future events which are considered reasonable under specific circumstances while they are
reassessed continuously with the use of all available information.

Judgments
During the application of accounting policies, Company’s management, using the most accurate information available, applies its judgment
based on its knowledge of the Company and the market in which it operates. Possible future changes in the current conditions are taken into
account in order to apply the most proper accounting policy. Management’s judgment with regard to the formulation of estimates, pertaining
the accounting policies, are summarized in the following categories:

Classification of investments
Management decides on the acquisition of an investment whether this will be classified as held to maturity, investment measured at fair value
through the income statement or held for sale.

Determining whether a lease can be classified as operating or finance lease

The evaluation of such agreements is not only subject to the assessment of the type of the lease but mainly to the terms of the transaction.
Factors examined to assess are the term of the lease, the residual value of the asset at the end of the term, the fair present value of the asset
compared to the present value of the lease payments, the specific nature of the assets and various other factors. See note 5.37

Accounting treatment of liabilities (provisions) regarding aircraft maintenance

The accounting treatment and measurement of those liabilities is based on management judgments and estimates concerning the use of the
aircraft and the maintenance planning as well as the relevant terms in the leasing contracts. See note 5.41

Estimates and assumptions

Specific amounts which are included in, or affect the financial statements and the relevant disclosures are assessed from the Company’s
management in order to formulate assumptions regarding values or conditions which are not certain during the preparation of the financial
statements. An accounting estimate is considered important when it is significant for the financial condition and the results of the Group and
it requires difficult, subjective or complex judgments by the management and which is often a result of uncertain assumptions. The Company
evaluates such estimates on a continuous basis based on the results of past experience, on experts’ consultations, trends and on other
methods which are considered reasonable in the current circumstances, as well as the Company’s provisions with regard to their probability
to change in the future.

Impairment of investment in subsidiaries

The parent company examines at each balance sheet date whether indications of impairment of investments in subsidiaries exist. Determining
impairment indications requires management to make judgments regarding external and internal factors and the extent to which they affect
the recoverability of these assets. If it is assessed that there are indications of impairment, the Company makes an estimate of recoverable
amount. The calculation of the recoverable amount requires estimates regarding future cash flows associated with the investment, business
plan and determining the discount and growth rates. See note 5.26

78
 amounts in thousand €

Loyalty program revenue recognition

The Group estimates the fair value of unredeemed loyalty points (miles) of Miles & Bonus program by utilizing historical and statistical data.
This calculation uses estimates for the expected redemption rate and the fair value of the redemption product. On December 31st 2015 the
estimated liability for unredeemed miles amounted to € 19,804 thousand (2014: € 13,635 thousand). See note 5.39

Income tax
The measurement of income taxes provisions is heavily based on estimates. There are a lot of transactions for which the accurate calculation
of the tax is not possible in the normal course of business. The Company recognizes liability provisions for anticipated tax matters, based on
estimates for potential amounts due for additional taxes. When the expected final tax payable is different from the initial estimates in the
financial statements the differences have an impact in the income tax and in the provisions for deferred taxation in the period when these
amounts become final. Moreover, possible effects from the tax audit of previous periods are included in note 5.40 and are recorded in the
account ‘Income Tax’ of the Income Statement.
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will occur and tax losses may be offset and tax
credits may be used. The recognition of deferred tax assets requires significant estimates and judgment with respect to future activities and
prospects of the Group companies and the amount and timing of taxable profits.

Fair value of derivatives and other financial instruments

The Company uses derivatives to manage a series of risks including interest rates, foreign currency exchange rates (EUR/USD) and jet fuel
price. Accounting for derivatives, in order to qualify for hedge accounting, requires that at the inception of the arrangement the details of the
hedging relationship must be formally documented and the hedged value and the hedging instrument must meet certain requirements. From
the beginning of a hedging and thereafter, every quarter the hedging effectiveness is evaluated both retrospectively and prospectively. In
cases where the hedging becomes ineffective, it does no longer qualify as a hedge instrument in the future. The fair values of the derivative
contracts are calculated using pricing models from an independent platform, making assumptions based on the market, which are confirmed
by independent sources.
Additional information regarding the use of derivatives is provided in note 5.45.

Fair value of financial instruments

All assets and liabilities for which the fair value is measured or disclosed in the financial statements, are categorized according to the hierarchy
levels, described below:
The fair value of financial instruments traded in active markets is determined at each reporting date in relation to the stock market values ​​or
values ​​determined by broker offers, without deduction for transaction costs (Hierarchy Level 1).
The fair value of financial instruments not traded in active markets is determined using: (i) appropriate valuation techniques for which the
data, that have significant impact on the fair value accounted for, are directly or indirectly identifiable (Hierarchy Level 2), (ii) techniques
for which the data, that have significant impact on the fair value accounted for, are not easily identified in the markets (Hierarchy Level 3)
and may include recent transactions under normal conditions, the current fair value of another instrument similar to these instruments,
discounted cash flow analysis or other valuation models.

For assets and liabilities recognized in the financial statements at fair value, the Group determines whether there are transfers made during
the year between the hierarchy levels at the end of each year.

Contingencies
The Company is involved in litigation and claims in its normal course of operations. Management, based on past experience and the fact that the
trial procedures are still in process, estimates that any resulting settlements would not materially affect its financial position and operations.
However, the determination of contingent liabilities relating to the litigation and claims is a complex process that involves judgments as to
the possible outcomes and interpretation of laws and regulations. Future changes to the judgments or the interpretations may increase or
decrease the Company’s contingent liabilities in the future. Contingent assets / liabilities balances are analyzed in note 5.53.

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amounts in thousand €

Useful life of depreciable assets

The Company’s management evaluates the useful life of depreciable assets in every period. On December 31st 2015 the Company’s
management believes that the useful lives of the assets are in line with their expected useful life. The depreciable amounts are analyzed in
notes 5.23 and 5.24. Intangible asset useful life can be characterized as limited or unklimited.

5.6 Summary of accounting policies

Basis of preparation of financial statements
The accounting policies used for the preparation of the 2015 financial statements are presented below. The financial statements are presented
in thousand Euros. It has to be noted that possible small deviations are due to rounding.

5.7 Foreign currency translation

The financial statements of the Company are presented in Euros (€) which is its operating currency.
Foreign currency transactions are converted into the operating currency using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the conversion of remaining balances at year-
end exchange rates, are recognized in the income statement in the accounts “financial income” & “financial expense” respectively.

5.8 Revenues and expenses recognition

Revenues are recognized at the time the Company expects to receive the economic benefits and these benefits can be measured reliably.
Revenue is measured at the fair value of the benefit received, net of tax, credits, trade discounts and airport fees.
The amount of revenue is estimated that it can be measured reliably only when all contingent liabilities related to it have been resolved.

Revenue is recognized as follows:

Services: Revenue from flight services is recognized in the period that the service is rendered based on its completion stage. Services relate
to transfer of passengers or goods with scheduled and unscheduled (charter) flights.
Revenues from scheduled and charter flights are recognized when the flight takes place. The value of tickets that have not yet been flown are
recognized as deferred revenue, which are recorded in the period in which the flight takes place.
Revenues from services related to services to be provided in a later period, are recognized in the liability account (deferred revenue) and
transferred to income in the period in which services are provided.

Interest income: Interest income is calculated using the method of the effective interest rate which is the rate that discounts future flows for
the expected duration of the financial instrument at the net book value of the asset or liability.

Expenses: Expenses are recognized in the income statement on accrual basis. Aircraft maintenance accruals are calculated based on the
actual flight hours. Interest expense is calculated using the effective interest rate according to time elapsed.

5.9 Intangible assets

Intangible assets include airports slots, software licenses, Olympic Air brand and goodwill. Airports slots have an indefinite useful life, therefore
they are not depreciated, but they are subject to impairment testing annually. Software licenses are valued at historic cost less amortization
and/or any other possible impairment. Amortization is calculated applying the straight line method in the useful life of the assets which is
between 1 to 10 years.
Goodwill is an asset with an indefinite useful life, therefore it is not depreciated, but is subject to impairment testing annually. It derives from
the company’s acquisitions and is calculated as a balance between the acquisition price and the fair value of the net assets acquired.

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 amounts in thousand €

Useful life for Tangible Assets

-Software 5 years
-Olympic Air Brand contract terms
-Other 10 years

5.10 Tangible assets

Tangible assets are reported in the financial statements at acquisition cost, less accumulated depreciations and possible impairment. The
acquisition cost includes all the directly attributable expenses for the acquisition of the assets. Subsequent expenditure is added to the
carrying value of the tangible fixed assets or is recognized as a separate fixed asset only if it is expected to increase the future economic
benefits for the Company and their cost can be accurately and reliably measured. Upon initial recognition of the value of aircraft for which a
lease begins, the Group estimates the cost of major maintenance and recognizes them as separate tangible assets, which are depreciated
based on their expected flight hours, until the occurrence of the next major maintenance. When the next major maintenance is carried out,
this cost is recognized in the residual value of the aircraft, as a replacement of depreciated asset, which is derecognized. Such events include
engine performance restorations and airframe heavy checks. Tangible assets that have been acquired through financial leasing are depreciated
through the whole duration of the expected useful life (based on similar owned tangible assets) if or during the lease period if it is shorter.

Depreciation of tangible fixed assets (other than Land which is not depreciated) is calculated using the straight line method over their useful
life, as follows:

Buildings 10-20 years

Machinery 6-8 years
Aircraft 20-25 years
Vehicles 3-5 years
Aircraft /airport equipment 3-8 years
Other equipment 5 years

Aircraft maintenances for financial leases is depreciated over the realized flight hours based on aircraft technical specifications. Most important
maintenance events are 6 and 12 year airframe checks that occur every 6 and 12 years respectively.
The residual values and useful economic life of tangible fixed assets are subject to impairment testing annually. When the book value of
tangible fixed assets exceeds their recoverable amount, the difference (impairment) is immediately expensed in the income statement.
Upon sale of the tangible fixed assets, any difference between the proceeds and the book value is recognized as profit or loss to the results.
Depreciation of aircrafts is done using the component depreciation method.

5.11 Impairment of tangible and intangible assets

The tangible and intangible assets that are valued at cost less depreciation/amortization, are reviewed for impairment when events or
circumstances indicate that the residual value may not be recoverable.
The impairment loss is the amount by which the book value of the cash-generating unit exceeds its recoverable amount. The recoverable
amount is determined by discounting the future cash flows expected from the cash-generating unit.

5.12 Leases
The Company as lessee:
Finance leases
Leases of tangible assets that transfer to the Company all the risks and benefits linked to the ownership of an asset, whether the title has or
has not eventually been transferred, constitute finance leases. At inception, such leases are capitalized at the lower of the fair value of the
leased asset and the present value of the minimum lease payments. Every lease is apportioned between liability and finance cost so that a
fixed interest rate can be applied on the residual financial liability.

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amounts in thousand €

Operating leases
The leases where the lessor transfers the right of use for an asset for a certain period without actually transferring all the risks and benefits
linked to the ownership of an asset, are classified as operating leases. Payments made under operating leases (net of possible incentives offered
by the lessor) are recognized to the income statement over the period of the lease. The company has the obligation at the end of the contract
before returning the aircraft to carry out the necessary maintenance according to lease agreements. For this reason, a maintenance accrual is
kept based on flight hours, as indicated in Note 5.8.

The Company as lessor:

The leases in which the Company does not actually transfer all risks and benefits of an asset are classified as operating leases. Initial direct
costs which burden the lessor during the negotiation and signing of the lease contract are added to the book value of the leased asset and are
recognized as revenue with the same method during the leasing period. As a lessor the Company receives lease payments from the sublease
of offices.

5.13 Financial assets

A financial instrument is any contract that creates a financial asset to one entity and a financial liability or equity to another enterprise.
The Group's financial assets are classified at initial recognition in the following categories based on the the contract’s terms and the purpose for
which they were acquired:

i) Financial assets at fair value through profit or loss

This category includes financial assets that satisfy any of the following conditions:

· F inancial assets held for trading purposes (including financial instruments acquired or created for the purpose of sale or repurchase and those
that are part of a portfolio of recognized financial instruments), except those that are designated as effective hedging instruments)
· A t initial recognition by the company the instrument is valued at fair value, given certain conditions, with changes recognized in the Statement
of Comprehensive Income.

Financial assets at fair value through profit or loss are measured at fair value with gains or losses being recognized in the Statement of
Comprehensive Income.

ii) Loans and receivables

Those include non-derivative financial assets with fixed or determinable payments that are not traded in an active market. This category (Loans
and Receivables) does not include:

· R eceivables from advances for the purchase of goods or services such as advances given for purchase of aircraft which are considered non-
monetary items and are recorded at cost as non-current assets
· R eceivables relating to tax transactions, which have been imposed by the state with legislation
· A nything not covered by a contract which gives the company the right to receive cash or other financial assets
Loans and receivables are included in current assets, except for maturities greater than twelve (12) months from the date of financial position.
These are classified as non-current assets. These data are measured at amortized cost using the effective interest method, less any impairment
losses. Gains or losses are recognized in income statement when the investments are derecognized or impaired, as well as through the
amortization process.

iii) Held-to-Maturity investments

They include non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group has the intention and
ability to hold until maturity. These assets are measured after initial recognition at amortized cost using the effective interest method, less
any impairment losses. Gains or losses are recognized in income when the investments are derecognized or impaired, as well as through the
amortization process.

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 amounts in thousand €

iv) Available For Sale financial assets

They include non-derivative financial assets that are either classified in this category or not classified in any of the above categories.
Subsequently, available for sale financial assets are measured at fair value and the related gains or losses are recorded as other income until
such assets are sold or impaired. Upon sale or when designated as impaired, gains or losses are recognized in the results. Impairment losses
recognized in the income statement and relate to investments in equity instruments cannot be reversed through the results.

Purchases and sales of financial assets are recognized on the trade date, which is the date that the Group commits to purchase or sell the
asset. Investments are initially recognized at fair value plus directly attributable transaction costs. Investments are derecognized when the
rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred all the risks and
rewards of ownership.

Impairment of financial assets

At each reporting date, the Group assesses whether there is objective evidence leading to the conclusion that financial assets have been
impaired.

Financial assets carried at amortized cost

If there is objective evidence for impairment on loans and receivables carried at amortized cost, the amount of the loss is measured as the
difference between the asset balance and the present value of estimated future cash flows (excluding future credit losses not yet incurred).
The cash flows are discounted using the effective interest rate of the asset (the effective interest rate computed at initial recognition). The
rest is reduced either by deletion or through use of a provision.

The current value of the asset is reduced through a provision and the impairment loss is recognized in the income statement. The Group first
assesses whether objective evidence of impairment of individual assets which are considered significant are present, and then assets that are
not individually significant grouped and assessed all together. If it is determined that no objective evidence of impairment exists for a certain
item, regardless of the importance of this asset, then it is included in impairment testing groups of assets with similar credit risk.

Customized financial assets which are tested for impairment and for which an impairment loss is or continue to be recognized are not included
in a grouped assessment for impairment. If in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after recognition of the impairment loss, the amount of the loss recognized previously is reversed.
Any subsequent reversal of impairment losses recognized in the income statement to the extent that the balance of the asset does not exceed
its amortized cost at the reversal date.

Available for sale investments

For shares of companies classified as financial assets available for sale, a significant or prolonged decline in the fair value below its cost
of acquisition has occurred. If such evidence exists, the cumulative loss in equity, which is the difference between cost and fair value, is
transferred to the income statement. Impairment losses recognized in the past related to investments in equity instruments are not reversed
through the income statement. Reversals of impairment losses on bonds are recognized in the income statement if the increase in fair value
of the instrument can be objectively related to an event occurring after the impairment loss

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amounts in thousand €

De recognition of Financial Assets:

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e.,
removed from the Group’s consolidated statement of financial position) when:

· T he rights to receive cash flows from the asset have expired.

· T he Group maintains its right to receive cash flows from the asset but has assumed an obligation to pay the received cash flows in full
without material delay to a third party under a ‘pass-through’ arrangement
· T he Group has transferred its rights to receive cash flows from the asset and has either (a) transferred substantially all the risks and rewards
of the asset, or has (b) neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of
the asset

Where the Group has transferred its rights to receive cash flows from the asset and has transferred substantially all the risks and rewards of
the control of the asset, the asset is recognized to the extent of the Group's continuing involvement in this asset. Continuing involvement
that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the
maximum amount that the Group could be required to repay. When continuing involvement is in the form of a call options on the transferred
asset (including cash settled ones), the degree of continuing involvement of the Group is the value of the transferred asset that the Group
may repurchase, except in the case of put options which is valued at fair value, where the continuing involvement of the Group is limited to
the lower of the fair value of the transferred asset and the option exercise price.

Fair value
The fair values of financial assets that are quoted in active markets are defined by closing market prices on the balance sheet date. Regarding
non-tradable assets, their fair values are defined with the use of valuation techniques. The purpose of using valuation techniques is to
determine the transaction value at the record date which is conducted at commercial terms and driven by common business factors. Valuation
techniques include the analysis of recent transactions at commercial terms, peer group valuation, discounted cash flows and stock option
valuation models.

Financial derivatives and hedge accounting

All financial derivative assets are initially recognized at the fair value on the trade date and subsequently at their fair value. Financial derivative
instruments are recognized in assets when their fair value is positive and in liabilities when their fair value is negative. Their fair value is
calculated from the value they have on an active market or through other valuation techniques when an active market does not exist for these
financial instruments.

The profit or loss recognition depends whether a derivative has been determined as a hedging item and if hedging exists based on the
nature of the hedged item. Profit or loss arising from the change of the fair value of derivatives that are not recognized as hedging items, is
recognized in the income statement. The Company is using hedge accounting when at the commencement of the hedging transaction, and
the subsequent use of financial derivatives can determine and justify the hedging relationship between the hedged item and the instrument
used for hedging, relating to its risk management policy and strategy for hedging. Moreover hedge accounting is used only when it is expected
that the hedging strategy will be highly effective and reliably and continuously calculated, for the periods it was intended for, as per the
reconciliation of the movements in the fair value or the cash flows resulting from the hedged risk. The Company is hedging cash flows using
financial derivative instruments.

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 amounts in thousand €

Cash flow hedging

With cash flow hedging the Company is covering risks coming from an asset, liability or future transaction that cause fluctuations in the
cash flows and which could have an impact to the period’s result. For financial derivatives classified as hedging items for cash flow hedging
purposes, special accounting treatments are required. In order to fulfill the hedge accounting requirements, certain conditions relating to
justification, hedging effectiveness and reliable calculation must be met.

The changes in the fair value of the effective part of the hedging derivative are recognized in the equity while the ineffective part is recognized
in the comprehensive income statement. The accumulated balances in the equity are transferred in the income statement of the periods
where the hedging derivatives are recognized. In particular amounts relating to hedging of fuel prices increase or decrease fuel expenses,
amounts relating to hedging of lease rentals increase or decrease lease expenses and amounts relating to hedging of interest rates increase
or decrease finance costs.

When a financial instrument expires, is either sold or exercised without being replaced, or when a hedged item does no longer fulfill the criteria
of hedge accounting, cumulative gain or loss remains in equity and it is recognized when the transaction occurs. If the hedged transaction is
not expected to occur, gains or losses are recognized directly in the income statement.

5.14 Inventories
The inventories include aircraft spare parts and purchased goods. The acquisition cost includes all the costs incurred to bring the inventories
at their current location and condition. Finance cost is not included in the inventories acquisition cost. The inventories’ cost is calculated using
the FIFO method (First In First Out).

Aircraft spare parts of large values that can be utilized multiple times are capitalized at aircraft value in tangible assets. Restricted cash relate
to guarantees to counterparties for commodity swaps, in particular oil swaps, to cover the fuel price increase risks.

On the balance sheet date, the inventories are measured at the lower of acquisition cost and net liquidation value.

5.15 Cash and cash equivalents.

Cash and cash equivalents include cash at bank, petty cash as well as short term highly liquid deposits with an original maturity of three
months or less.

5.16 Share capital

Share capital is determined using the nominal value of shares that have been issued. Share premium reserve includes all premiums in excess
of the nominal price received at the date of the issue. A share capital increase through cash includes any share premium during the initial
share capital issuance. Any cost related to the capital increase or any tax benefit is deducted from the product of the share capital increase.
Retained earnings include the result of the current and the previous periods.

5.17 Employee benefits due to retirement and other short term benefits to employees
Short term benefits
Short term employee benefits in cash or in kind are recognized as expense when incurred. Any unpaid amount is recognized as liability.

Retirement benefits
The Company has established both defined benefit and defined contribution plans.
Typically, defined benefit schemes provide for a benefit the employee will receive on retirement, based on factors such age, service years and
compensation received.

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amounts in thousand €

The balance sheet liability in respect of a defined benefit plan is the present value of the defined benefit obligation at the balance sheet date
less the fair value of the plan’s assets.

The defined benefit obligation is measured annually by independent actuaries using the projected unit credit method. The current value of
the defined benefits is estimated by discounting the future expected cash outflows (using the interest rate of European bonds index IboxAA
AA Corporate Overall 10+ EUR indices), issued in the currency the benefits will be paid at and have similar maturity terms to those of the
retirement’s liability.

The actuarial gains or losses that result from adjustments based on experience and changes in accrual assumptions at the end of the previous
period exceeded the higher of the 10% of the defined benefit tax assets or the 10% of the defined benefit liabilities, are charged to the results
based on the expected average of the remaining working life of the employees that participate to the scheme.

A defined contribution plan is a retirement scheme where the Company pays defined contributions, to an independent institution (the fund)
that operates the contributions and provides the benefits, on a compulsory or non-compulsory basis. The Company has no other legal or
any other type of obligation for further contributions if the fund is unable to meets its contract requirements and provide to the employees
the agreed benefits for current or past services. Prepaid contributions are recognized as assets to the extent the cash return or decrease is
expected in the future payments.

5.18 Financial liabilities

Financial liabilities include bank loans and overdrafts, trade and other payables and liabilities incurred and financial leases.

Financial liabilities are recognized when the Company becomes a party to the contractual agreements of the instrument and derecognized
when the obligation under the liability is discharged, cancelled or expires.

Bank loans provide long term financing to the Company. All loans are initially recognized at cost which is the fair value of the consideration
received less the issue costs. After the initial recognition, bank loans are valued in their depreciable amount with the real interest rate method.
The depreciated amount is calculated taking into consideration every discount or premium in the settlement.

All interest related charges are recognized as an expense in “financial expense” in the income statement.

Trade payables are recognized initially at their nominal value and subsequently valued at their amortized cost less any settlement payments.

Dividends payable to the shareholders are in included in “Other short term liabilities” when they are approved by the Shareholders’ General
Meeting.

When a current financial liability is exchanged with another of different type and terms (or the terms of the current liability are substantially
changed) but from the same originator, this is dealt as termination of the initial liability and commencement of a new one. Any difference in
the book values is recognized in the income statement.

5.19 Income tax & deferred tax

Income tax
Current income tax receivables / liabilities comprise of obligations to / or claims from fiscal authorities based on taxable income of the current
or previous reporting periods that have not been settled until the balance sheet date.
They are measured at tax rates and tax laws that are enacted on the respective financial year based on the taxable profits for the period. All
differences in tax assets / liabilities are charged to the income statement for the period as part of the income tax expense.

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 Deferred tax
Deferred income tax is calculated with the net liability method focuses on temporary differences between the carrying amounts of assets
and liabilities of the financial statements and the corresponding tax bases. Deferred tax assets are re-examined at every balance sheet date
and are reduced to the extent that it is no longer possible that enough taxable income will be available to allow the use of benefit (in total or
partially) of the deferred tax asset. Deferred tax liabilities are recognized for all temporal tax differences except when the deferred tax liability
arises from the initial recognition of goodwill.

Deferred tax assets and liabilities are measured at tax rates that are expected to be enacted when the asset will be recovered or the liability
settled taking into consideration the tax rates already enacted by the time of the balance sheet date.

Most changes in deferred tax assets or liabilities are recognized as tax revenue - expense. Changes in deferred tax assets or liabilities related
to a change in the value of asset or liability recognized in equity through the statement of other comprehensive income or directly, are
recognized in equity through the statement of comprehensive income or directly respectively.

The Company recognizes a previously unrecognized deferred tax asset to the extent that it is probable that future taxable profit will allow the
recovery of the deferred tax asset.

5.20 Provisions, contingent liabilities and contingent assets

Provisions are recognized when the Company has present legal or assumed obligations as a result of past events, their settlement is probable
through an outflow of economic resources from the Company and the liability can be estimated reliably. The time frame or the resources’
outflow may be uncertain. A present obligation stems from the existence of a legal or assumed obligation resulting from past events such as
warranties, legal disputes or onerous contracts. When the total or part of the estimated provision settlement amount is expected to be paid by
a third party, the remuneration will be recognized only if it is more probable than not that the remuneration will be paid by the financial entity.
The remuneration amount recognized cannot exceed the provision amount.

The expense relating to a provision is presented in the income statement, net of the provision initially formed. A provision is used only for the
purpose it was initially formed. Provisions are evaluated at each balance sheet date and adjusted accordingly in order to depict the best most
current estimation. Provisions are valued at the balance sheet date and are adjusted in order to reflect the present value of the obligation’s
expected settlement cost.

In such cases where the possible economic resources outflow as a result of present obligation is not probable or the amount or the provision
cannot be reliably estimated no provision for contingent obligations is recognized in the financial statements however they are disclosed if
the probability of economic resources outflows is high. Contingent assets are recognized in the financial statements but are disclosed when
the economic resources inflow is probable. Possible economic resources inflows for the Company that do not meet the conditions for an asset
are considered as contingent assets.

5.21 Operating Segments

In 2015 the Group decided to change the way of presenting operating segment information, following the Management’s reporting and thus
it was considered appropriate to present information on a single route network sector.
More specifically, the Group is managed as one business unit that provides high-quality air transport within and outside the Greek territory.
Operations are monitored and managed by the Board of Directors, which acts as the Chief Operating Decision Maker - CODM.
For more efficient decision-making, CODM is provided with all necessary information (route revenue, available resources, competition analysis),
which is evaluated for the entire network, with the goal of maximizing the overall financial results and not to improve the results of a particular
route. Finally it should be noted that profitability is measured on the basis of the result, profit or loss, from operating activities before income
tax, without taking into account the financial results and extraordinary items.

5.22 Modification previous year financial statements

The basic assumptions that were initially used to define the subsidiary Olympic Air brand were deviating from the airline industry more
conservative assumptions.
Consequently, as of acquisition date the subsidiary’s brand value was reduced by € 9,653.55 thousand and the goodwill of the subsidiary
was increased equally. Assumptions used were WACC of 9.5% (from 14%) and Loyalty rate of 1% (from 4%). The effect on equity as of 31
December, 2013 was € 2,326.99 thousand, which related to deferred tax on brand name. As of December 31st 2014, the effect on equity was
Euro € 2,263.28 thousand and the effect on income statement was € 245.03 thousand.
The comparative amounts have been restated in order to reflect the above mentioned adjustments to the basic assumptions.

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5.23 Intangible assets
As at 31.12.2015 the Company held intangible assets amounting to € 28.973,11 thousand and the Group 47.602,09 thousand. The changes
in the aforementioned amounts are analyzed as follows:

Company Group
Intangible assets 31/12/2015 31/12/2014 31/12/2015 31/12/2014

Acquisition cost
Balance as of January 1st 35.771,00 33.331,77 63.183,04 60.513,56
Additions 2.205,85 2.439,22 2.274,38 2.518,18
Disposals (245,75) 0,00 (245,75) 0,00
Total acquisition cost 37.731,10 35.770,99 65.211,67 63.031,74
Accumulated amortization
Balance as of January 1st 7.296,21 6.275,28 15.274,63 13.076,01
Amortizations 1.461,78 1.020,93 2.334,95 2.047,31
Disposals 0,00 0,00 0,00 0,00
Total accumulated amortization 8.757,99 7.296,21 17.609,58 15.123,32
Unamortized cost 28.973,11 28.474,78 47.602,09 47.908,42

Group Intangible assets as of 31.12.2015 include “Olympic” brand worth € 17,854.32, the value of which was modified according to estimates
described in paragraph 5.22, airport slots worth € 22,039.00, software licenses worth € 4,048.61 and other intangible assets worth € 3,660.16.

The Group performs its annual impairment test of goodwill every year end (December 31st)

5.24 Tangible assets

(a) The Company’s fleet as at 31.12.2015 consisted of 44 aircraft, as analyzed below:

- 35 Airbus A320
- 8 Airbus A321
- 1 Airbus A319

(b) The Group’s fleet as at 31.12.2015 consisted of 58 aircraft, as analyzed below:

- 35 Airbus A320
- 8 Airbus A321
- 1 Airbus A319
- 10 Bombardier Q400
- 4 Bombardier D100

4 A320s of the above mentioned aircraft are under financial leases and the rest are under operating leases.

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 amounts in thousand €

(c) Table of tangible assets

Company Buildings Αircraft owned Aircraft Leasing Aircraft Leasing
maint. reserves
Cost of acquisition
Balance January 1st 2014 12.276,47 6.475,32 69.795,08 40.160,02
Additions 157,52 806,85 3.419,80
Disposals
Impairment (1.888,58) (856,93)
Balance December 31st 2014 10.545,41 6.475,32 69.745,00 43.579,82
Depreciations
Balance 1 January 2014 5.018,25 2.347,29 15.740,99 29.083,69
Depreciation 439,01 323,77 3.138,53 4.904,52
Disposals
Impairment (1.332,67) (218,16)
Balance 31 December 2014 4.124,59 2.671,06 18.661,36 33.988,21
Depreciable value at 31 December 2014 6.420,83 3.804,26 51.083,64 9.591,61
Cost of acquisition
Balance January 1st 2015 10.545,41 6.475,32 69.745,00 43.579,82
Additions 137,50 260,46 15.484,41
Disposals (282,05)
Balance December 31st 2015 10.682,91 6.475,32 69.723,41 59.064,23
Depreciations
Balance January 1st 2014 4.124,59 2.671,06 18.661,36 33.988,21
Depreciations 579,13 323,77 3.137,55 4.934,08
Disposals (89,92)
Balance December 31st 2015 4.703,72 2.994,83 21.708,99 38.922,29
Depreciable December 31st 2015 5.979,19 3.480,49 48.014,42 20.141,94

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 amounts in thousand €

Aircraft Airport Other Furniture and Total

equipment equipment vehicles spare parts

8.365,24 1.982,29 657,86 8.386,01 148.098,29
5.827,99 7,57 44,77 797,75 11.062,25
(10,71) (7,50) (18,21)
(1,25) (2.746,76)
14.191,98 1.979,15 695,13 9.183,76 156.395,57

7.209,56 1.587,67 571,78 7.770,57 69.329,79
406,57 84,88 25,50 714,87 10.037,63
(10,71) (7,50) (18,21)
(0,82) (1.551,65)
7.615,31 1.661,84 589,78 8.485,44 77.797,58
6.576,67 317,31 105,35 698,31 78.597,99

14.191,98 1.979,15 695,13 9.183,76 156.395,57

19.527,33 4,35 238,85 1.074,52 36.727,42
(1,65) (145,54) (19,59) (5,37) (454,20)
33.717,66 1.837,96 914,39 10.252,89 192.668,78

7.615,31 1.661,84 589,78 8.485,44 77.797,59
1.707,25 78,75 41,12 457,23 11.258,89
(0,04) (145,54) (14,69) (5,43) (255,62)
9.322,52 1.595,05 616,21 8.937,25 88.800,86
24.395,14 242,91 298,18 1.315,66 103.867,93

90
 amounts in thousand €

Group Buildings Αircraft owned Aircraft Leasing Aircraft Leasing

maint. reserves

Cost of acquisition
Balance January 1st 2014 12.276,47 6.475,32 69.795,08 40.160,02
Additions 157,52 - 806,85 3.419,80
Disposals -
Impairment (1.888,58) - (856,93) -
Balance December 31st 2014 10.545,40 6.475,32 69.745,00 43.579,82
Depreciations
Balance 1 January 2014 5.018,25 2.347,29 15.740,99 29.083,69
Depreciation 439,01 323,77 3.138,53 4.904,52
Disposals - - - -
Impairment (1.332,67) - (218,16) -
Balance 31 December 2014 4.124,60 2.671,06 18.661,36 33.988,20
Depreciable value at 31 December 2014 6.420,81 3.804,26 51.083,64 9.591,62

Cost of acquisition
Balance January 1st 2015 10.545,40 6.475,32 69.745,00 43.579,82
Additions 137,50 - 260,46 15.484,41
Disposals - - (282,05) -
Balance December 31st 2015 10.682,90 6.475,32 69.723,41 59.064,23
Depreciations
Balance January 1st 2014 4.124,60 2.671,06 18.661,36 33.988,20

Depreciations 579,13 323,77 3.137,55 4.934,08

Disposals - - (89,92) -
Balance December 31st 2015 4.703,73 2.994,82 21.708,99 38.922,29
Depreciable December 31st 2015 5.979,17 3.480,50 48.014,42 20.141,94

91
 amounts in thousand €

Aircraft equipment Airport equipment Other vehicles Furniture and Total

spare parts

8.608,24 1.982,29 869,24 13.089,40 153.256,06
5.827,99 7,57 79,21 939,96 11.238,89
- (10,71) (73,97) (67,95) (152,63)
(1,25) - - - (2.746,76)
14.434,98 1.979,15 874,48 13.961,41 161.595,55

7.241,60 1.587,67 698,96 10.532,82 72.251,26
430,87 84,88 52,27 1.129,90 10.503,73
- (10,71) (45,67) (40,31) (96,69)
(0,82) - - - (1.551,65)
7.671,65 1.661,84 705,56 11.622,40 81.106,65
6.763,33 317,31 168,92 2.339,00 80.488,90


14.434,98 1.979,15 874,48 13.961,41 161.595,55
18.334,42 4,35 238,85 923,82 35.383,80
(1,65) (145,54) (22,03) (195,26) (646,53)
32.767,74 1.837,96 1.091,30 14.689,97 196.332,82

7.671,65 1.661,84 705,56 11.622,40 81.106,65

1.712,59 78,75 66,35 842,56 11.674,78

(0,04) (145,54) (14,70) (136,39) (386,58)
9.384,20 1.595,04 757,21 12.328,57 92.394,85
23.383,55 242,91 334,08 2.361,39 103.937,97

92
 amounts in thousand €

5.25 Advances for assets’ acquisition

Advances for assets acquisition of € 30,994.76 (2014: € 56,024.47) relate to advances given for the purchase of aircraft and aircraft equipment.

The 2015 reduction is mainly due to the delivery of four aircraft in 2015 under sale and leaseback agreements. The advances that were paid
Airbus were returned to the Company.

5.26 Investments in subsidiaries

Investments in subsidiaries are analyzed as follows:

Company Country of activity Participation 31/12/2015 31/12/2014

Olympic Air Α.Ε. Greece 100% 62.416,56 62.416,56
Aegean Cyprus LTD Cyprus 100% 10.000,00 -
Investment in subsidiaries 72.416,56 62.416,56

In June 2015 the Company paid the amount of € 50,000.00 thousand for its subsidiary (with participation of 100%) covering all of the original
share capital and the share capital increase decided by the general Meeting of Aegean Cyprus LTD on 08 July 2015.
On 14.12.2015 the capital of the subsidiary was reduced at € 40.000,00.

5.27 Deferred tax assets/liabilities

The deferred tax assets/liabilities arising from the corresponding temporary tax differences for the Company and the Group are the following:

  31/12/2015 31/12/2014
Company Asset Liability Asset Liability
Revaluation of assets and depreciation/amortization 669,51 (3.925,81) 498,09 (2.950,25)
Finance leases 16.057,87 (20.447,11) 15.206,26 (15.444,20)
Receivables 7.739,70 (3.414,50) 8.569,49 (3.256,51)
Provisions for employee retirement benefits 2.622,07 2.030,36
Liabilities from financial derivatives 7.977,53 0,00 10.481,50 (9.040,45)
Bonds 0,00 (206,62) 52,81 0,00
Other short term liabilities 30.824,21 (25.153,89) 6.457,51 (699,19)
Total for offsetting 65.890,89 (53.147,94) 43.296,03 (31.390,60)
Balance 12.742,96 11.905,42

  31/12/2015 31/12/2014
Group Asset Liability Asset Liability
Revaluation of assets and depreciation/amortization 669,51 (4.987,46) 925,06 (4.316,85)
Finance leases 16.057,87 (20.447,11) 15.206,26 (15.444,20)
Receivables 7.739,70 (3.435,00) 8.569,49 (3.440,17)
Provisions for employee retirement benefits 2.711,63 0,00 2.140,06 0,00
Liabilities from financial derivatives 7.977,53 0,00 10.481,50 (9.040,45)
Bonds 0,00 (206,62) 52,81 0,00
Other short term liabilities 33.319,70 (25.153,89) 9.828,24 (699,19)
Tax Loss 2.487,05 0,00 6.896,23 0,00
Total for offsetting 70.962,99 (54.230,09) 54.099,66 (32.940,86)
Balance 16.732,90 21.158,79

All deferred tax assets and liabilities were determined by the liability method and refer to temporary tax differences.
Other long term assets

93
amounts in thousand €

5.28 Other long term assets

The other long term assets are analyzed as follows:
  Company Group
 31/12/2015 31/12/2014 31/12/2015 31/12/2014
Warranties issued for lease assurance 18.852,27 12.281,18 25.503,41 18.114,87
Other warranties 495,07 1.870,09 495,07 1.870,09
Total 19.347,34 14.151,27 25.998,48 19.984,96

The Company and the Group in order to secure the current aircraft operating leases and in accordance with the terms of the leasing con-
tracts, provide cash warranties mainly to aircraft leasing companies. Moreover, a minor part of the above balances refers to leased proper-
ties that are used by the Company and the Group. The increase shown is mainly due to the deliveries of new aircraft for which the relevant
financial warranties were given.

“Other warranties” includes disputed claims against the Greek State.

5.29 Financial Assets available for Sale

The Company placed part of its cash (€ 39,082.32) to Money Market Funds. These Funds are considered as low risk investments as they
invest their assets in high quality money market instruments which can be easily liquidated.
The amount of €10,126.00 relates to Company’s investment in corporate bonds traded in primary and secondary markets.

Finally, the amount of €2,901.09 relates to Company’s placements and the amount of €8,901.83 relates to Group’s investments in shares
traded in primary and secondary markets.
The amounts above are classified as “Financial Assets at fair value” (Level 1 Fair values).
During the period ended in December 31, 2015, no transfers of financial assets between Level 1 and Level 2 Hierarchies were made.

5.30 Inventories
The inventories refer to goods sold during international flights and aircraft spare parts.

Regarding the aircraft spare parts, the Company and the Group maintain a determined amount of spare parts in order to cover the needs of
the aircraft maintenance and repair operations.

Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Goods 723,81 589,10 723,81 589,10
Aircraft spare parts 7.892,15 7.683,35 12.457,86 12.648,64
Total 8.615,96 8.272,45 13.181,67 13.237,74

94
 amounts in thousand €

The changes in the inventories are analyzed as below:

Company Group
31/12/2015
31/12/2015 31/12/2014 31/12/2014
Goods
Opening balance 589,10 619,36 589,10 619,36
Purchases for the period 1.397,59 1.019,34 1.397,59 1.019,34
Consumption for the period (1.262,88) (1.049,60) (1.262,88) (1.049,60 )
Closing balance 723,81 589,10 723,81 589,10
Aircraft spare parts
Opening balance 7.683,36 5.342,30 12.648,69 10.331,93
Purchases for the period 8.411,18 6.176,44 11.178,23 7.626,13
Spare parts consumption for the period (8.202,39) (3.835,39) (11.369,06 ) (5.309,42 )
Closing balance 7.892,15 7.683,35 12.457,86 12.648,64
Total inventories 8.615,96 8.272,45 13.181,67 13.237,74

5.31 Customers and other trade receivables

The “Customers and other trade receivables” refer mainly to the following balances:

  Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Domestic customers 8.774,58 8.838,57 10.406,18 7.769,68
Foreign customers 6.343,65 3.042,53 7.073,79 3.682,51
Greek State 453,86 8.262,34 10.728,47 16.660,82
Other miscellaneous debtors 57.607,36 42.207,96 58.589,98 42.587,39
Receivables from Subsidiary 20.000,00 0,00 0,00 0,00
Accrued income receivable 15.466,07 13.074,10 12.833,52 13.074,10
Prepayments to suppliers 3.066,80 3.003,53 4.843,93 3.873,74
Total 111.712,32 78.429,03 104.475,87 87.648,24

“Other miscellaneous debtors” balance refers to receivables from ticket sales through IATA travel agents in Greece or abroad and tickets sold
from/to other airlines.
“Receivables from Subsidiaries” balance refers to receivables of € 20.000,00 thousand from AEGEAN CYPRUS LTD due to reduction of its share
capital.
The majority of the above receivables is considered to be short-term and therefore their fair value is not considered to be materially different
from their book value.

The ageing of customer receivables less bad debt provision is presented in the table below:

  Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Expected receivable time:        
Less than 3 months 105.815,46 54.675,18 86.966,36 54.942,43
Within 3 and 6 months 3.781,56 21.336,36 13.506,56 29.447,47
Within 6 months and 1 year 302,18 302,18 1.162,38 341,40
More than a year 1.813,12 2.115,31 2.840,57 2.916,94
Total 111.712,32 78.429,03 104.475,87 87.648,24

95
amounts in thousand €

The balances with expected receivable time greater than one year refer to the sale of fixed assets agreed with the buyer for payment greater
than a year.

The Company on 31.12.2015 made a provision for uncollectible receivables amounting to € 486.10 thousand and received the amount of
€ 117.88 thousand euros from customers for whom provisions had been written in previous years. The amounts have affected the year end
result. The corresponding figures for the Group was € 686.69 thousand euros for provisions and € 141.48 for collections.

5.32 Prepayments
Prepayments relate to amounts paid in advance for certain transactions with third parties or to the Company’s and the Group’s employees.
Prepayments balance is analyzed below:

Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Advances to employees 1,67 1,67 13,83 19,10
Employees prepaid expenses 110,39 181,41 110,39 181,41
Other prepayments 1,41 1,63 727,41 233,28
Prepaid expenses 9.082,18 3.135,58 9.589,41 4.800,49
Fixed asset orders prepayments 3.572,39 5.367,99 3.572,39 5.367,99
Total 12.768,04 8.688,28 14.013,43 10.602,27

Prepaid expenses mainly relate to aircraft maintenance and insurance and other operating costs.
“Fixed asset orders prepayments” concerns orders for aircraft equipment and software systems.

5.33 Cash and cash equivalents – Restricted Cash

The Group’s restricted cash as at 31.12.2015 and 31.12.2014 amounted at 36,392.02 and 16,043.15 respectively, concerning cash that had
been given to third parties as a warrant in order to balance the risk that will arise from the increase in the jet fuel prices.

During the current period the comparative figures of financial position and cash flow have been reclassified, without affecting the results of
the previous period and the reported financial statements.
“Restricted cash” balance have been restructured by €16,043.15, previously showed into “Cash and cash equivalents”

Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Cash 968,24 144,55 1.042,09 147,28
Current accounts 87.654,90 143.267,30 104.886,07 163.189,95
Short term time deposits 17.031,51 28.099,65 47.004,69 28.099,65
Total 105.654,65 171.511,50 152.932,85 191.436,88

5.34 Share capital

The Company’s share capital at 31.12.2014 and 31.12.2015 is €46,421,115, divided into 71,417,100 common registered shares of nominal
value sixty five eurocents (€ 0.65) per share.
All shares have been fully paid and participate in the profits.

96
 amounts in thousand €
5.35 Share premium
The share premium at 31.12.2014 and 31.12.2015 resulted at € 72,775.98.

On 31/12/0214 the premium of the share capital that had resulted from the issue of shares for cash at a value higher than their nominal value,
was decreased due to the share capital increase through capitalization of reserves amounting to € 71.417,10 thousand. The reserve amount
after the deduction amounted to € 72,775.98 thousand.

5.36 Other reserves

Other reserves comprise of statutory, extraordinary, tax exempt reserves, from reserves arising from cash flow hedges with the use of financial
derivatives, as well as from reserves arising from financial assets available for sale.
Company’s other reserves are analyzed as follows:

Statutory Extra ordinary Fair value Available Total

reserves reserves reserves for sale
(cash flow
hedging)
Balance at 31/12/2014 2.597,90 356,50 (4.247,64) (150,30) (1.443,56)
Change for the period 2.843,32   (15.429,41) 650,08 (11.936,01)
Balance at 31/12/2015 5.441,22 356,50 (19.677,05) 499,78 13.379,57)

Groups other reserves are analyzed as follows:

Statutory Extra ordinary Fair value Available Total

reserves reserves reserves for sale
(cash flow
hedging)
Balance at 31/12/2014 2.597,89 356,50 (4.247,65) (150,30) (1.443,56)
Change for the period 2.843,32   (15.429,41) 842,35 (11.743,75)
Balance at 31/12/2015 5.441,21 356,50 (19.677,06) 692,05 (13.187,31)

Respectively, the amounts for 2014 are:

Statutory Extra ordinary Fair value Available Tax Total

reserves reserves reserves for sale exempt
(cash flow reserves
hedging)
Balance at 31/12/2013 2.597,90 356,50 (2.361,49) 1.244,75 35,37 1.873,03
Change for the period (1.886,16) (1.395,04) (35,37) (3.316,58)
Balance at 31/12/2014 2.597,90 356,50 (4.247,65) (150,29) 0,00 (1.443,54)

The fair value reserves are presented net of deferred taxes.

97
5.37 Liabilities from finance leases
The analysis of four finance lease agreements is as follows:
Company Group
Future Payments 31/12/2015 31/12/2014 31/12/2015 31/12/2014
Up to 1 year 10.947,33 9.456,87 10.947,33 9.456,87
Between 1 to 5 years 42.981,54 40.017,92 42.981,54 40.017,92
More than 5 years 4.670,79 12.119,19 4.670,79 12.119,19
Total 58.599,66 61.593,98 58.599,66 61.593,98
   
Financial expense 3.227,70 3.108,34 3.227,70 3.108,34

Present value of future payments 31/12/2015 31/12/2014 31/12/2015 31/12/2014

Up to 1 year 10.188,22 8.875,92 10.188,22 8.875,92
Between 1 to 5 years 40.743,36 38.037,75 40.743,36 38.037,75
More than 5 years 4.440,37 11.571,96 4.440,37 11.571,96
Total 55.371,95 58.485,63 55.371,95 58.485,63
The weighted average interest rate was calculated at 0.5229%

5.38 Provisions for employee retirement benefits

The amounts analyzed below are recognized as defined benefit plan for the Company and they are based on independent actuarial calculations:
31/12/2015 31/12/2014
Amounts recognized in the income statement
Current service cost 614,04 604,71
Interest cost 165,08 274,21
Additional benefits cost 319,38 276,76
Nominal expense to the income statement 1.098,50 1.155,68
Service cost recognition 0,00 (3.629,68)
Total expense to the income statement 1.098,50 (2.474,00)

Changes in net obligation recognized in the balance sheet
Net obligation at the opening year 6.236,20 7.158,36
Benefits paid by the employer (420,14) (378,37)
Total expense recognized in the income statement 1.098,50 (2.474,00)
Amount recognized in other comprehensive income 1.181,97 1.930,21
Net obligation at the end of the year 8.096,53 6.236,20

Changes in the present value of the obligation
Present value of the obligation - Opening period 6.236,20 7.158,36
Current service cost 614,04 604,71
Interest cost 165,08 274,21
Service cost recognition - (3.629,68)
Benefits paid by the employer (420,14) (378,37)
Additional payments or expenses/income 319,38 276,76
Actuarial loss/gain 1.181,97 1.930,21
Present value at the end of fiscal year 8.096,53 6.236,20

98
 amounts in thousand €

Actuarial assumptions were:

31/12/2015 31/12/2014
Discount rate 2,10% 2,60%
Expected salary increase percentage 2,00% 2,50%
Average years of working life 24,87 25,28

The Group amounts are as follows:

31/12/2015 31/12/2014
Amounts recognized in the income statement
Current service cost 708,09 714,80
Interest cost 171,61 285,32
Additional benefits cost 375,35 725,56
Nominal expense to the income statement 1.255,05 1.725,68
Service cost recognition 0,00 (3.629,68)
Total expense to the income statement 1.255,05 (1.903,99)

Changes in net obligation recognized in the balance sheet
Net obligation at the opening year 6.600,34 7.508,50
Benefits paid by the employer (486,52) (860,65)
Total expense recognized in the income statement 1.255,05 (1.903,99)
Amount recognized in other comprehensive income 1.036,47 1.856,48
Net obligation at the end of the year 8.405,35 6.600,34

Changes in the present value of the obligation
Present value of the obligation - Opening period 6.600,34 7.508,50
Current service cost 708,09 714,80
Interest cost 171,61 285,32
Service cost recognition 0,00 (3.629,68)
Benefits paid by the employer (486,52) (860,65)
Additional payments or expenses/income 375,35 725,56
Actuarial loss/gain 1.036,47 1.856,48
Present value at the end of fiscal year 8.405,35 6.600,34

The sensitivity analysis of the actuarial calculation outcome for the company is analyzed as follows:
By using a higher by 0,5% discount rate the actuarial obligation would be lower by 9%. In contrary if the discount rate was increased by 0,5%
the actuarial obligation would be higher by 10%.
The relevant sensitivity checks for the expected salaries % increase are as follows:
If the expected salaries % increase was increased by 0,5% then the actuarial obligation would be higher by 9% and if the expected salaries %
increase was decreased by 0,5% then the actuarial obligation would be lower by 9%.

99
amounts in thousand €

The actuarial obligation for the Company for each scenario mentioned above is analyzed as follows:

Actuarial Obligation % Change

Discount rate increase by 0,5% 7.406.477 -9%
Discount rate decrease by 0,5% 8.868.111 10%
Expected salaries % increase by 0,5% 8.859.300 9%
Expected salaries % decrease by 0,5% 7.407.403 -9%

5.39 Suppliers and other liabilities

The analysis for the Company and the Group is as follows:

  Company Group
  31/12/2015 31/12/2014 31/12/2015 31/12/2014
State-law entities and state-owned enterprises 119,27 34,66 119,27 383,80
Foreign suppliers 29.959,70 26.517,53 32.041,52 30.000,32
Domestic suppliers 39.192,14 28.461,92 35.852,41 26.781,22
Liabilities from customers loyalty programs 9.110,00 6.272,38 9.110,01 6.272,38
Total 78.381,11 61.286,49 77.123,21 63.437,72

The balance “Foreign suppliers” relates to liabilities resulting from aircraft maintenance, fuel and aircraft leases.
The carrying amounts of suppliers and other liabilities approach their fair values. Liabilities from customers’ loyalty programs due refer to the
amount that, as assessed by the Company, will be covered in the subsequent year.
Liabilities from customer loyalty programs included in the account payable and other liabilities relate to the amount estimated by the Company
and the Group that will be redeemed in the following year.
The obligation miles the Company and the Group expects to be redeemed for more than one year are included in the item Other long term
liabilities.

The Company and the Group total obligations arising from customer loyalty program (miles and bonus) is as follows:

31/12/2015 31/12/2014
Balance 01/01 13.635,62 10.044,41
Miles Accrual 10.779,21 5.278,6
Miles Redemption (4.610,45) (1.687,41)
Liability 31/12 19.804,38 13.635,60

5.40 Provisions
(a) Tax unaudited periods
The Company has been tax audited for the fiscal years 2012, 2013 and 2014 according to the tax legislation (1159/2011 and 1124/2015) by
the Certified Accountants.
The company has made a provision for tax audit differences of 219.58 thousand euros
The subsidiary Olympic Air S.A. has been tax audited for the fiscal years 2011, 2012, 2013 and 2014 according to the tax legislation (1159/2011
and 1124/2015) by the Certified Accountants.
The subsidiary has not formed any tax provisions due to significant cumulative tax losses.

100
 amounts in thousand €

(b) Maintenance reserves

The accumulated amount provisioned for future aircraft maintenance (maintenance reserves) is as follows:

  Company Group
  31/12/2015 31/12/2014 31/12/2015 31/12/2014
Balance as at January 1st 22.450,54 25.475,13 29.200,89 34.412,83
Current period’s provisions 74.594,21 60.843,50 76.140,18 62.344,13
Less: Provisions used (79.476,25) (63.868,09) (85.425,45 ) (67.556,08 )
Balance as at December 31st 17.568,50 22.450,54 19.915,62 29.200,89

(c) Other provisions

Other provisions at Group level on 31/12/2015 and 31/12/2014 of € 1,617.25 and € 3,238.12 respectively refer to subsidiaries’ provisions
regarding existing contracts early terminations costs

5.41 Other long term liabilities

Other long term liabilities mainly refer to the Company’s liabilities long-term portion of the deferred purchase price of Olympic Air and the
long-term portion of the Customer Loyalty program, additional liabilities of EUR 7,582.84 thousand that occurred from Olympic Air.
  Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Installments for Olympic acquisition 10.400,01 20.800,0 10.400,01 20.800,0
Deferred interest from Olympic acquisition (844,38) (2.683,14) (844,38) (2.683,14)
Long-term portion of Miles and Bonus program 10.694,37 7.363,2 10.694,35 7.363,2
Contract terminations 0,00 0,00 7.582,84 9.103,5
Total 20.250,00 25.480,13 27.832,84 34.583,64

5.42 Other short term liabilities

Other short term liabilities refer to the Company’s and Group’s liabilities to social security organizations and other creditors that are directly
related to their trading operation. The analysis is as follows:
  Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Deferred income 27,92 4.290,35 27,92 4.290,35
Social Security Organization 4.085,34 3.536,86 4.682,05 4.336,88
Other short term liabilities 2.099,57 1.453,98 2.931,65 4.693,30
Checks outstanding postdated 666,24 543,32 666,24 544,62
Customers advances 4.393,41 1.512,99 4.393,41 1.512,99
Tax – Stamp duty on employees’ benefits 21.985,56 4.346,31 22.686,01 5.141,51
Airport taxes and charges 25.969,95 37.636,23 27.212,55 38.180,01
Vat payable 1.344,13 719,71 1.495,23 1.395,23
Payable installment for purchase of subsidiary 10.400,01 10.400,01 10.400,01 10.400,01
Total 70.972,13 64.439,76 74.495,07 70.494,90

“Airport taxes & charges” include all the airports taxes and fees.
“Payable installment for purchase of subsidiary” include the short-term liabilities for the acquisition of Olympic Air

101
amounts in thousand €

5.43 Liabilities from tickets sold but not flown

Refers to the amount of deferred revenue from tickets sold but not flown until the next period.

5.44 Accrued expenses

Accrued expenses are analyzed as follows:
Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Agents’ commissions 3.885,46 5.193,91 3.885,46 5.193,91
Use of software 247,46 161,82 247,46 671,46
Aircraft fuel 266,63 51,06 280,12 51,06
Aircraft maintenance expenses 7.518,65 7.512,93 7.518,65 7.512,93
Landing costs 9.441,17 4.091,49 9.441,17 4.204,18
Other Airlines Cost 1.746,01 878,18 1.296,26 878,18
Other fees payable 533,43 1.340,79 533,43 1.340,79
Other expenses 6.005,00 3.461,67 5.615,80 3.620,21
Total 29.643,81 22.691,85 28.818,35 23.472,72

5.45 Financial Derivatives

Financial derivatives are analyzed as follows :
Company Group
31/12/2015 31/12/2014
31/12/2015 31/12/2014
Financial derivatives (assets)
Forward contracts in US $ - Cash flow hedging
Commodities’ swaps (jet fuel) - Cash flow hedging 34.304,74 34.770,95 34.304,74 34.770,95
Receivables from financial derivatives 34.304,74 34.770,95 34.304,74 34.770,95

Financial derivatives (liabilities)
Forward contracts in US $ - Cash flow hedging 1.342,88 0,00 1.342,88 0,00
Commodities’ swaps (jet fuel) - Cash flow hedging 59.117,38 38.776,63 59.117,38 38.776,63
Interest rate swaps - Cash flow hedging 1.035,66 1.536,83 1.035,66 1.536,83
Liabilities from financial derivatives 61.495,92 40.313,46 61.495,92 40.313,46

Financial derivatives are classified either as assets or liabilities. The total fair value of a financial derivative that is qualified as a hedging
instrument is classified either as non-current item if the maturity of the hedged item is more than 12 months or as current item if the maturity
of the hedged item is less than 12 months.

(a) Forward contracts in US dollars (currency forwards)

The forward contracts are used for cash flow hedging of the risks arising from the movement in US dollar’s exchange spot rates. On 31
December 2015, the Company had entered into forward contracts to hedge 56% of its expected needs in US dollars for 2016 and 21% for 2017
(future transactions). The nominal amount as at 31.12.2015 of the open forward contracts was 363,736.57 (2014: € 388,454.94) (Level 2
Fair Values).

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 amounts in thousand €

Maturity Face Value

$ ,000
2016 288.000
2017 108.000

(b) Commodity swaps (Jet fuel swaps)

Commodity swaps amounted to contracts for a total quantity of 352.2 thousand metric tons which account for approximately 66% of the
projected jet fuel needs in 2016 (future transactions) and 29% in 2017. The specific derivative contracts are used for cash flow hedging of
the risks arising from the increase in the fuel prices. The nominal value of the open contracts as at 31.12.2015 was € 189,480.60 (2014: €
155,923.64) thousand (Level 2 Fair Values).
The Group at 31.12.2015 and 31.12.2014 had restricted cash amounted at 36,392.02 and 16,043.15 respectively, concerning cash that had
been given to third parties as a warrant in order to balance the risk that will arise from the increase in the jet fuel prices.
Third parties are obliged to return those warrants under the terms of the bilateral agreements.

(c) Interest rate swaps

Interest rate swaps (IRS) are used as hedging instruments for the cash flow hedging of floating rate financial liabilities for the 44% of the
finance leases obligations.
The nominal value of the open IRS contracts as at 31.12.2015 was € 25,419.57 (2014: € 27,471.87) (Level 2 Fair Values).
In addition, the Company has entered into preliminary agreements of Sale and Lease Back transactions for 3 aircraft scheduled to be delivered
in February (1) and March (2) 2016. According to the provisions of the lease agreements the final rent is fixed on the delivery date’s interest
swap rate. The Company in order to cover its exposure to interest rate fluctuations has entered into forward interest rate swaps for one out
of the three aircraft. The notional amount of open future exchange rates on 31.12.2015 amounted to € 33,687.1 (2014: € 0) (Fair Value
Hierarchy Level 2).
The derivatives are valued at their fair value. The fair value are provided by the financial institutions and they represent, in good faith,
assumption and estimations of the abovementioned institutions based on the available information for the market trends. The parameters
used to calculate the fair value differ depending on the type of derivative.

5.46 Revenue
Revenue refers to proceeds from tickets sales, sales of goods and other services.
Revenue per service category is analyzed as follows:

  Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Income from scheduled flights 766.573,93 688.408,90 827.383,26 748.556,80
Income from charter flights 47.008,73 62.016,65 45.749,47 61.361,94
Other operating income 108.127,43 100.465,54 109.830,88 101.874,96
Total 921.710,09 850.891,09 982.963,61 911.793,70

5.47 Other income

This category includes income created by ancillary activities and is analyzed as follows

Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Greek Manpower Employment Organization (OAED) subsidies 303,06 27,77 303,06 29,34
Income from services rendered to third parties 15.244,33 10.465,99 8.369,62 7.110,18
Income from Training 311,29 1.180,13 904,01 1.822,91
Rental income 0,00 0,00 823,41 0,00
Other income 4.631,34 298,18 8.427,52 782,77
Total 20.490,02 11.972,07 18.827,62 9.745,20

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amounts in thousand €

5.48 Consumption of materials and services

These amounts refer to the operating expenses of the Company and the Group and they are analyzed as follows:

Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Aircraft fuel 210.796,12 226.182,20 216.255,29 232.772,80
Aircraft maintenance 74.594,21 60.843,50 97.595,68 77.633,98
Overflight Expenses 65.256,90 52.605,92 67.089,21 53.942,18
Handling charges 55.464,14 47.024,62 60.436,70 51.531,95
Airport charges 48.673,88 35.920,88 50.744,10 37.404,12
Catering costs 23.825,56 20.434,15 24.364,60 21.072,20
Distribution costs 71.366,10 59.292,06 73.772,06 61.192,42
Marketing costs 14.264,78 11.735,86 14.613,75 12.295,49
Aircraft & spare engines leasing 126.732,14 117.495,79 106.105,79 90.677,51
Inventories’ consumption 1.262,88 1.049,59 1.262,88 1.049,59
Other operating expenses 62.229,18 55.723,03 68.947,31 62.709,34
Total 754.465,89 688.307,58 781.187,37 702.281,58

Further analysis of “Other operating expenses” is the following:

Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Third party fees 9.609,74 8.259,86 10.804,48 9.109,03
Board of Directors remuneration 1.500,00 1.500,00 1.500,00 1.500,00
Cargo expenses 1.601,41 1.328,06 1.617,80 1.341,01
Personnel training 2.864,86 2.527,85 3.106,25 3.095,39
Mail & Telecommunications expenses 2.219,93 1.832,83 2.504,56 2.103,61
Rents 2.369,49 2.512,90 3.658,02 3.787,14
Insurance premiums 2.578,16 2.120,69 2.962,78 2.612,96
Maintenance for building and equipment 2.720,42 2.645,32 2.986,84 3.020,81
Travel expenses 2.901,91 2.279,80 3.404,90 2.681,90
Stationary 1.645,04 1.262,69 1.748,95 1.384,20
Subscriptions 3.265,69 2.524,90 4.116,15 3.309,03
Other overhead costs 28.952,53 26.928,13 30.536,61 28.764,26
Total 62.229,18 55.723,02 68.947,31 62.709,34

5.49 Employee Costs

Employee costs include salaries as well as provisions for retirement benefits.
  Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Salaries and wages 77.240,95 63.421,03 88.309,30 79.109,33
Employers’ contribution 17.464,96 15.415,75 20.151,22 19.631,72
Provision for retirement benefits 779,12 1.155,69 929,14 1.725,69
Total 95.485,03 79.992,47 109.389,66 100.466,74

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 amounts in thousand €

The number of employees is the following:

Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Employees number 2.121 1.678 2.344 1.988

5.50 Financial income / expense

Financial income / expense analysis is as follows:
  Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Interest and expenses from long term liabilities 732,29 917,17 732,29 917,17
Interest and expenses from short term liabilities 2.721,63 3.516,19 2.721,68 3.480,36
Letters of Guarantee commissions 1.337,11 1.334,09 1.381,47 1.337,22
Finance leases interest 667,33 559,61 667,33 559,6
Foreign exchange losses 29.819,88 29.761,69 32.887,02 30.711,92
Other financial expenses 360,22 354,21 614,08 527,59
Total financial expenses 35.638,46 36.442,96 39.003,87 37.533,87
Other interest income 1.102,83 3.830,09 1.133,75 3.905,20
Foreign exchange gains 36.102,36 20.885,29 40.982,82 22.279,98
Total financial income 37.205,19 24.715,38 42.116,57 26.185,18

5.51 Income tax

Income tax is analyzed below:

Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Current tax (21.480,55) (14.586,00) (21.480,55) (14.586,00)
Deferred tax (5.367,19) (324,45) (10.441,96) 200,46
Total Tax (26.847,74) (14.910,45) (31.922,51) (14.385,54)

Profit /(loss) before taxes 81.095,06 71.776,83 100.316,89 94.630,54
29% 26% 29% 26%
Tax estimated on existing
tax coefficient basis (23.517,57) (18.661,98) (29.091,90) (24.603,94 )

Tax on expenses not deductible for tax purposes (870,00) (520,00) (1.705,70) (1.387,80 )

Tax reserves on sales of shares 0,00 4.271,52 0,00 4.271,52

Effect of change on tax rates 0,00 0,00 0,00 0,00
Recognition of subsidiary’s deferred tax (2.460,17) 0,00 (4.723,45) 6.473,46
Other permanent differences 0,00 0,00 3.598,54 861,23
Income Tax (26.847,74) (14.910,45) (31.922,51) (14.385,54)

Income tax for 2015 has been calculated with 29% rate, as the change in the tax rate from 26% to 29% that was included in Law
N.4335/17.07.2015 is applicable for fiscal years beginning on or after 01.01.2015.

105
amounts in thousand €

5.52 Commitments
(a) Operating leases
The operating leases obligations for the Company and the Group arise mainly from leased aircraft and spare engines used

  Company Group
  31/12/2015 31/12/2014 31/12/2015 31/12/2014
Up to 1 year 112.091,48 78.451,81 131.530,44 96.959,83
Between 1 and 5 years 343.911,08 246.211,44 416.257,43 312.469,13
More than 5 years 49.740,02 45.519,80 94.380,20 101.596,70
Total 505.742,59 370.183,04 642.168,08 511.025,66

(b) Capital commitments

The Company commitments are related to the order of the 3 Airbus A320, already delivered to the company within the first quarter of 2016.

(c) Existing encumbrances

There are no encumbrances on the Company’s tangible assets (buildings, owned aircraft).

5.53 Contingent assets and liabilities

Legal or in arbitration disputes
There are legal or in arbitration disputes and other contingent future events however they are not expected to have a material effect in the
financial position or the operation of the Company and the Group.

Contingent liabilities
Total third party legal claims from the Company amount to € 440.99 thousand, while for the Group amounted to € 1,492.63 thousand.
The Company’s management based on previous court decisions as well as on the fact that the trial procedures have not been finalized yet,
estimates that their outcome would not have a material impact on its financial position and operation.

An analysis of the pending legal cases follows:

Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Labor disputes 80,76 112,19 715,30 1.085,27
Accidents 15,00 0,00 109,50 64,71
Other 345,23 344,68 393,73 358,53
Total 440,99 456,87 1.218,53 1.508,51

5.54 Loans
In the current period the Company has repaid the amount of € 9,726.54 which refers to financial leases capital.

106
 amounts in thousand €

5.55 Related parties transactions

The most significant transactions of the Company with related parties according to IAS 24, appear on the following table:

Company
Transactions with other companies owned
by the major shareholder 31/12/2015 31/12/2014
Receivables (End of period balance from sale of goods- services) 99,37 95,98
Payables (End of period balance from purchase of goods- services) 194,11 240,32
Income – Services provided from the Company 746,20 726,43
Expenses – Services the Company received 1.670,94 1.652,15
Transactions with subsidiaries
Receivables (End of period balance from sale of goods- services) 666,70 1.546,47
Payables (End of period balance from purchase of goods- services) 8.370,78 3.124,74
Income – Services provided from the Company 76.330,89 4.895,76
Expenses – Services the Company received 15.064,16 57.733,98

The above transactions with companies owned by the major shareholder of the Company relate mainly torents and services provided or
received. The transactions with the subsidiary are mainly related with aircraft leases and other services. All transactions are on arm’s length
basis.

Besides the above mentioned, it should be also noted that the Annual General Meeting, which was held on May 12th, 2015 has approved
the agreement between the Company and the company "TEMES SA", whose chairman of BoD and shareholder is a member of the Company’s
BoD and shareholder of the Company, Mr. Achilleas Konstantakopoulos. The agreement relates to the performance of scheduled flights to/
from Kalamata for the period 2/2015 - 11/2015, with agreed frequencies and capacity, with Airbus A320 and A319 aircraft, according to the
relevant terms.

5.56 Transactions with directors and Board of Directors members

Compensation to directors and BoD members is analyzed below:

  Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
BoD members fees 1.500,00 1.500,00 1.500,00 1.500,00
Directors’ salaries 2.926,57 2.930,36 3.089,91 3.795,85
Directors’ social insurance expenses 162,73 187,37 186,70 303,80
Benefits in kind and other payments to directors 270,17 215,88 278,59 259,26
Total 4.859,47 4.833,61 5.055,20 5.858,91
Obligations to directors’ 796,28 801,68 796,28 801,68

There are no other transactions, receivables or liabilities with the directors or the BoD members.

107
amounts in thousand €

5.57 Earnings per share

Earnings per share were based on the weighted average outstanding number of shares out of the total number of shares and are analyzed as
follows:

  Company Group
31/12/2015 31/12/2014 31/12/2015 31/12/2014
Profit / (loss) before tax 81.095,06 71.776,83 100.316,92 94.890,69
Income tax (26.847,74) (14.910,45) (31.922,51) (14.449,25)
Profit / (loss) after tax 54.247,32 56.866,38 68.394,41 80.441,44
Attributable to: 71.417.100 71.417.100 71.417.100  71.417.100
Basic earnings / (loss) per share (euros / share) 0,7596 0,7963 0,9577 1,1264

5.58 Risk management

The Group is exposed to multiple risks. The risk management policy of the Group aims to reduce the negative impact on outcome resulting
from the unpredictability of financial markets and the variations in costs and sales.
The Group uses financial derivative instruments to hedge its exposure to certain types of risk.

The risk management policy is executed by the Financial Department of the Group. The procedure is the following:
• Evaluation of risks associated with the activities and operations of the Group
• Design of a methodology and selection of appropriate financial products to reduce risks
• Execution / implementation, in accordance with the procedure approved by the management

Foreign currency risk

The Group due to the nature of the industry is exposed to variations in foreign currency exchange rate which arise mainly from US Dollar.
This kind of risk arises mainly from transactions in foreign currency. The Group’s exposure to foreign exchange risk varies during the period
according to the seasonal volume of transactions in foreign currency.
To manage this kind of risk the Group enters into forward currency exchange contracts with financial organizations.

Interest rate risk

The Group’s policy is to minimize interest rate cash flow risk exposure on long – term financing.
With relation to the above risk the Group has hedged a portion of its financial leases obligations.

Jet fuel risk

The Group is exposed to the fluctuations of the price of oil which directly influences the price of jet fuel. To manage this risk the Group enters
into derivative contracts on oil products in order to hedge part of its projected jet fuel needs.

The following tables present:

The sensitivity of the period’s result as well as of the equity’s if a reasonable movement of +/- 50 basis points in the Euro / USD exchange rate
takes place.
The sensitivity of the period’s result as well as of the equity’s in a reasonable movement of +/- 10 basis points in the interest rates.
The sensitivity of the period’s result as well as of the equity’s in a reasonable movement of +/- $75/ΜΤ in the Jet fuel price.

108
 Company 31/12/2015 Balance Sheet value Foreign exchange risk Interest rate risk Fuel price risk
+50 bps -50 bps +10 bps -10 bps +75 USD/MT-75 USD/MT
Available for sale 19.316,81 (29,83) 30,11 (11,31) 11,35
Receivables 22.855,60 (74,19) 74,87
Restricted Cash 36.392,03 (118,12) 119,21
Cash and cash equivalents 39.307,89 (127,59) 128,77
Total 117.872,33 (349,73) 352,96 (11,31) 11,35 0,00 0,00
Derivatives (27.191,17) (1.160,00) 1.170,61 180,17 (181,28) 17.225,89 (17.225,89)
Liabilities (74.381,70) 241,43 (243,66)
Effect in the income statement
after tax / equity (78,46) 79,19 0,00 0,00 0,00 0,00
Effect in the statement
of total income after tax / equity (1.189,84) 1.200,72 168,86 (169,94)17.225,89 (17.225,89)

Company 31/12/2014 Balance Sheet value Foreign exchange risk Interest rate risk Fuel price risk
+50 bps -50 bps +10 bps -10 bps +75 USD/MT-75 USD/ MT
Available for sale 10.903,27 (16,99) 17,05
Receivables 15.548,76 (47,19) 47,58
Restricted Cash 16.043,16 (48,69) 49,09
Cash and cash equivalents 29.215,06 (88,67) 89,40
Total 71.710,25 (184,55) 186,08 (16,99) 17,05 0,00 0,00
Derivatives (5.542,50) (1.335,49) 1.346,48 0,00 0,00 11.382,51 (11.382,51)
Liabilities (71.666,46) 217,51 (219,31)   
Effect in the income statement
after tax / equity 32,96 (33,23) 0,00 0,00 0,00 0,00
Effect in the statement of total
income after tax / equity (1.335,49) 1.346,48 (16,99) 17,05 11.382,51 (11.382,51)

Group 31/12/2015 Balance Sheet value Foreign exchange risk Interest rate risk Fuel price risk
+50 bps -50 bps +10 bps -10 bps +75 USD/MT-75 USD/MT
Available for sale 19.316,81 (29,83) 30,11 (11,31) 11,35
Receivables 31.596,97 (102,56) 103,51
Restricted Cash 36.392,03 (118,12) 119,21
Cash and cash equivalents 40.122,82 (130,23) 131,43
Total 127.428,63 (380,75) 384,26 (11,31) 11,35 0,00 0,00
Derivatives (27.191,17) (1.160,00) 1.170,61 180,17 (181,28) 17.225,89 (17.225,89)
Liabilities (74.601,75) 242,15 (244,38)
Effect in the income statement
after tax / equity (108,77) 109,77 0,00 0,00 0,00 0,00
Effect in the statement of total
income after tax / equity (1.189,84) 1.200,72 168,86 (169,94) 17.225,89 (17.225,89)

109
 Group 31/12/2014 Balance Sheet value Foreign exchange risk Interest rate risk Fuel price risk
+50 bps -50 bps +10 bps -10 bps +75 USD/MT-75 USD/MT
Available for sale 10.903,27 0,00 0,00 (16,99) 17,05
Receivables 23.421,40 (71,08) 71,67
Restricted Cash 16.043,16 (48,69) 49,09
Cash and cash equivalents 30.569,39 (92,78) 93,55
Total 80.937,23 (212,55) 214,31 (16,99) 17,05 0,00 0,00
Derivatives (5.542,50) (1.335,49) 1.346,48 0,00 0,00 11.382,51 (11.382,51)
Liabilities (72.987,02) 221,52 (223,35)
Effect in the income statement
after tax / equity 8,96 (9,04) 0,00 0,00 0,00 0,00
Effect in the statement of total
income after tax / equity (1.335,49) 1.346,48 (16,99) 17,05 11.382,51 (11.382,51)

Fair value hierarchy levels

31/12/2015 Level 1 Level 2 Level 3
Assets    
Forward contracts in USD (FWD)   33.987,66  
Jet fuel commodity swaps (FWD)   0,00  
Interest rate swaps (IRS)   317,08  
Bonds (commercial portfolio) 42.510,20  
Total assets 42.510,20 34.304,74
Liabilities      
Forward contracts in USD   1.342,88  
Jet fuel commodity swaps (FWD)   59.117,38  
Interest rate swaps (FWD)   1.035,66  
Total liabilities (IRS)   61.495,91  

Fair value hierarchy levels

31/12/2014 Level 1 Level 2 Level 3

€000 €000 €000
Assets
Forward contracts in USD (FWD)   34.770,96  
Jet fuel commodity swaps (FWD)   0,00  
Interest rate swaps      
Bonds (commercial portfolio) (IRS) 10.903,27  
Total assets 10.903,27 34.770,96
Liabilities    
Forward contracts in USD (FWD)   0,00
Jet fuel commodity swaps (FWD)   38.776,63
Interest rate swaps (IRS)   1.536,82
Total liabilities  10.903,27 40.313,46  

Level 1 values refer to published prices and Level 2 values are based on measurement techniques. In particular, bonds and shares are traded
in active markets and they are valued at their market value according to the balance sheet date. Derivatives are valued using as a reference
international pricing platforms.

110
 amounts in thousand €

Credit risk
The maximum exposure to credit risk without taking into consideration security deposits and letters of guarantee are:

Company Group
Classes of assets 31/12/2015 31/12/2014 31/12/2015 31/12/2014
Cash and cash equivalents 142.046,68 187.554,65 189.324,88 207.482,03
Assets measured at fair value 42.510,20 10.903,27 48.510,93 10.903,27
Receivables from derivative contracts 34.304,75 34.770,96 34.304,75 34.770,96
Trade and other receivables 111.712,32 78.429,03 104.475,88 87.648,24
Total 330.573,95 311.657,91 376.616,44 340.804,50

The management considers that all the above financial assets that have not been impaired in previous reporting dates under review are of
high credit quality.
In order to be protected against the credit risk, the Group monitors on a regular basis its trading receivables and whenever necessary, assesses
the insurance of the receivables collection, mainly through factoring.

Possible credit risk also exists in cash and cash equivalents and in forward contracts. The risk may arise from the possibility of the counterparty
becoming unable to meet its obligations towards the Group. To minimize this risk the Group examines regularly its degree of exposure to every
individual financial institution. As far as it concerns its deposits the Group is dealing only with reputable financial institutions which have high
credit ratings.

Liquidity risk
Liquidity risk is managed effectively by maintaining sufficient cash levels. The Group manages its liquidity by maintaining adequate cash
levels as well as ensuring the provision of credit facilities not only from financial institutions but also from suppliers, always in relation to its
operating, investing and financing requirements. It is noted that as at 31.12.2015 the Group had a cash position of € 189.32 m. (including
restricted cash) and had also secured an adequate amount of committed credit facilities ensuring the servicing of its short and medium term
liabilities.

The financial obligations maturities of the Company as at 31 December 2015 are analyzed as follows:

31.12.2015 Short term Long term

Within 6 months 6 – 12 months 1-5 years More than 5 years
Long term bank loans
Finance lease obligations 5.382,46 5.408,74 43.110,81 4.697,65
Trade payables 69.271,10 9.110,01 0,00 0,00
Other short term liabilities 70.212,63 30.403,31 0,00 0,00
Financial derivatives 22.927,04 24.977,60 12.555,61 1.035,66
Other long term liabilities 0,00 0,00 20.249,99 0,00
Total 167.793,23 69.899,66 75.916,41 5.733,31

The relevant maturities as at 31 December 2014 of the Company are analyzed as follows:

31.12.2014 Short term Long term

Within 6 months 6 – 12 months 1-5 years More than 5 years
Long term bank loans
Finance lease obligations 4.721,43 4.735,43 40.017,92 12.119,19
Trade payables 55.014,11 6.272,38 0,00 0,00
Other short term liabilities 48.346,52 38.785,09 0,00 0,00
Financial derivatives 15.183,28 19.987,94 3.605,42 1.536,82
Other long term liabilities 0,00 0,00 25.480,12 0,00
Total 123.265,34 69.780,84 69.103,46 13.656,01
111
amounts in thousand €

The financial obligations maturities of the Group as at 31 December 2015 are analyzed as follows:

31.12.2015 Short term Long term

Within 6 months 6 – 12 months 1-5 years More than 5 years
Long term bank loans
Finance lease obligations 5.382,46 5.408,74 43.110,81 4.697,65
Trade payables 68.013,20 9.110,01 0,00 0,00
Other short term liabilities 77.607,05 25.706,37 0,00 0,00
Financial derivatives 22.927,04 24.977,60 12.555,61 1.035,66
Other long term obligations 0,00 7.582,84 20.249,99 0,00
Total 173.929,75 72.785,56 75.916,41 5.733,31

The relevant maturities as at 31 December 2014 of the Group are analyzed as follows:

31.12.2014 Short term Long term

Within 6 months 6–12months 1 -5 years More than 5 years
Long term bank loans
Finance lease obligations 4.721,43 4.735,43 40.017,92 12.119,19
Trade payables 57.165,33 6.272,38 0,00 0,00
Other short term obligations 62.492,26 31.475,36 0,00 0,00
Financial derivatives 15.183,28 19.987,94 3.605,42 1.536,82
Other long term liabilities 0,00 0,00 34.583,64 0,00
Total 139.562,30 62.471,11 78.206,98 13.656,01

The above periods’ maturities reflect the gross cash flows.

Policies and procedures on capital management

Primary target of the capital management is to ensure preservation of the high ranking credit rating as well as solid equity ratios so as to
support and expand the operations and maximize shareholders’ value.
The Company monitors managed capital based on shareholders’ total equity plus subordinated loans less cash and cash equivalents as they
appear on the balance sheet.

Managed capital for 2015 and 2014 financial periods is analyzed as follows:

Company Group
2015 2014 2015 2014
Shareholders’ total equity 190.174,50 201.607,26 221.974,44 218.992,34
Plus: Loans 55.371,95 58.485,63 55.371,95 58.485,63
Less: Cash and cash equivalents (142.046,68) (187.554,65) (189.324,88) (207.482,03)
Managed capital 103.499,77 72.538,24 88.021,51 69.995,94

Shareholders’ total equity 190.174,50 201.607,26 221.974,44 218.992,34
Plus: Loans 55.371,95 58.485,63 55.371,95 58.485,63
Total capital 245.546,45 260.092,89 277.346,39 277.477,97
Managed capital / Total capital ratio: 0,42 0,28 0,32 0,25

112
 amounts in thousand €

The Company’s target is to maintain the above ratio of “managed capital” (as defined above) over “total capital” (equity plus loans) less than
0.50.

According to the existing legislation, specific provisions exist regarding the capital adequacy. (Article Nο 47
Law 2190/20). The Company complies fully with them.

5.59 Other events

The Legislative Act of June 28th initiated a bank holiday and restrictions on capital movement, after a period
of protracted negotiations between the Greek Government and the European Institutions. The agreement reached on July 12th in Euro Summit
allowed the end of the bank holiday, while capital controls remain in force with some modifications. These developments coupled with the
increase in VAT and the imposition of additional tax collection measures seem to have a negative impact on the Greek economy in the second
half of 2015.
The Company closely monitors the developments, having already taken all those measures necessary to continue its activity without problems.
It is extremely important for the Company that the largest portion of its turnover comes from abroad, which combined with its high cash
reserves, allows to seamlessly meet its obligations.
Despite the fact that the course of the Greek economy may affect the performance of the Company, it is estimated that possible losses are
manageable and those would not significantly affect the Company’s results.
The General Meeting of Shareholders, which took place on May 12th 2015, approved the distribution of a dividend equal to € 0.70 per share,
for a gross amount of € 49,991,970 which after the Law 4172 tax was € 47,039,158.67. Until 31.12.2015 the distributed amount was €
49,911,940.43.

5.60 Subsequent events

The subsidiary Olympic Air participated in a tender process, announced by the Civil Aviation Authority - Ministry of Infrastructure, Transport and
Networks, dated March 3, 2016, in order to operate 16 PSO routes.
According to Δ1/B/5561/1052/17.3.2016, Olympic has been awarded with the exclusive rights to operate those 16 routes (against a total
compensation of 15,055,628). As the transaction is subject to the approval by the court of auditors the relevant contracts have not been
signed yet.

5.61 Auditor’s remuneration

Auditors’ remuneration for the period 2015 was € 175,00 thousand. Τhis remuneration includes the financial audit and the provision of tax
certificate for the fiscal year 2015. Except the above mentioned services there were no other services provided.

The annual Financial Statements for the period of 2015 have been approved by the Board of Directors of “Aegean Airlines S.A.” on 21.03.2016
and are posted on the Company’s website (www.aegeanair.com) for investors’ reference, where they will remain for at least 5 years after their
compilation and public announcement date.

Kifissia, March 21st 2016

Chairman Chief Executive Officer Chief Financial Officer Chief Accountant

Theodore Vasilakis Dimitrios Gerogiannis Michael Kouveliotis Maria Zannaki
I.D. no. ΑΚ031549 I.D. no. AB642495 I.D. no. Ρ490629 I.D. no. Σ723984

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 E. FIGURES AND INFORMATION FOR THE PERIOD 01.01.2015 – 31.12.2015

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 F. COMPANY ANNOUNCEMENTS AS PER ART.10 LAW 3401/2005 PUBLISHED DURING FISCAL YEAR 2015

Aegean Airlines had disclosed the following information over the period beginning 01.01.2015 and ending 31.12.2015, which are posted on
the Company’s website (www.aegeanair.com) as well as the website of Athens Exchange (www.athex.gr) and www.helex.gr.

Date Subject Link

30.11.2015 Write-off of the unclaimed dividend for fiscal year 2009 http://en.about.aegeanair.com/investor-relations/announcements/announcements/

26.11.15 Nine-Month 2015 Results http://en.about.aegeanair.com/investor-relations/announcements/announcements/

9.11.2015 Publication date of Nine-Month 2015 financial results http://en.about.aegeanair.com/investor-relations/announcements/announcements/

31.08.2015 First Half 2015 Results http://en.about.aegeanair.com/investor-relations/announcements/announcements/

28.8.2015 Conference Call Invitation http://en.about.aegeanair.com/investor-relations/announcements/announcements/

31.07.2015 Publication date of First Half 2015 Results http://en.about.aegeanair.com/investor-relations/announcements/announcements/

27.05.2015 First Quarter 2015 Results http://en.about.aegeanair.com/investor-relations/announcements/announcements/

22.05.2015 Reschedule of Publication date of First Quarter 2015 financial results http://en.about.aegeanair.com/investor-relations/announcements/announcements/

12.05.2015 Amendment of Financial Calendar 2015 http://en.about.aegeanair.com/investor-relations/announcements/announcements/

12.05.2015 Dividend distribution for Fiscal Year 2014 http://en.about.aegeanair.com/investor-relations/announcements/announcements/

12.05.2015 Decisions of the Annual General Shareholders meeting http://en.about.aegeanair.com/investor-relations/announcements/announcements/

8.05.2015 Publication date of First Quarter 2015 Results http://en.about.aegeanair.com/investor-relations/announcements/announcements/

21.04.2015 Draft amendment of articles of association http://en.about.aegeanair.com/investor-relations/announcements/announcements/

20.04.2015 Invitation to the ordinary General meeting of Shareholders http://en.about.aegeanair.com/investor-relations/announcements/announcements/

15.04.2015 Amendment of Financial Calendar 2015 http://en.about.aegeanair.com/investor-relations/announcements/announcements/

26.03.2015 2014 Financial Results http://en.about.aegeanair.com/investor-relations/announcements/announcements/

26.03.2015 Financial Calendar 2015 http://en.about.aegeanair.com/investor-relations/announcements/announcements/

20.03.2015 Conference Call Invitation http://en.about.aegeanair.com/investor-relations/announcements/announcements/

9.03.2015 Publication date of 2014 financial results http://en.about.aegeanair.com/investor-relations/announcements/announcements/

In addition, in the following page: http://en.aegeanair.com/investor-relations/announcements/trade-acknowledgements/ as well as on

Athens Exchange website www.helex.gr announcements of regulated information in accordance with Law 3556/2007 were posted on the
following dates:

Date

1 11.12.2015
2 10.12.2015
3 22.06.2015
4 19.06.2015

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G. WEBSITE FOR THE PUBLICATION OF THE ANNUAL FINANCIAL STATEMENTS

The Company’s financial statements, the independent auditors’ report and the Board of Directors’ report for the annual period ended on
31.12.2015 are posted on the Company’s website www.aegeanair.com

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