Airline Aegean's profit down 21 pct on fuel, dlr

ATHENS, Nov 11 (Reuters) - Greek carrier Aegean Airlines (AGNr.AT) reported a 21 percent drop in nine-month net profit on Tuesday due to high fuel costs and the strengthening of the dollar versus the euro.

Aegean, which competes with debt-ridden national carrier Olympic Airlines [OLY.UL], said profits fell to 26.5 million euros ($33.75 million) in the first nine months of the year despite an increase in passenger numbers.

Greece's largest privately-owned airline said it carried 4.6 million passengers during the period, up 13 percent on a year ago. Passengers on domestic flights rose 8 percent, while international routes saw a 23 percent increase.

"Aegean is reporting healthy results despite the adverse conditions affecting the industry and the crisis in the banking sector," Chief Executive Dimitris Gerogiannis said.

In October Aegean said the rise in oil prices would cut its full-year profits but fuel hedging and strong cash reserves of 180 million euros would help mitigate the downturn.

"The current crisis creates new challenges given the slowing economy and makes it very difficult to estimate anything for the next 12 to 18 months ... We remain focused on our growth plans," Gerogiannis said in a statement.

Aegean said sales rose 26 percent to 468 million euros, due to the traffic increase, the delivery of new aircraft and ticket surcharges for both domestic and international flights for higher fuel prices, which account for about 35 percent of the airline's costs.

Since it went public in 2007, Aegean has been renewing its fleet and wanting to add more destinations. It has not bid, however, in the ongoing privatisation of loss-making Olympic.

Aegean shares have fallen about 47 percent since the start of the year, outperforming the broader Greek market .ATG, which is down about 57 percent.

The stock trades nine times estimated earning versus a multiple of 12 for the European airlines sector, according to Reuters Estimates. (Reporting by Renee Maltezou; Editing by Daniel Flynn and Elaine Hardcastle)