Aeroflot announces 2017 results

Eleanor Steed
By Eleanor Steed March 1, 2018 10:49

Aeroflot announces 2017 results

The Aeroflot Group increased its revenue to RUB 532,934 million during 2017, an 7.5% increase year-on year. Net income totalled RUB 23,060 million.

“2017 was another landmark year for Aeroflot, as the Group’s airlines carried 50.1 million passengers, 15.4% more than the previous year,” said Shamil Kurmashov, PJSC Aeroflot Deputy CEO for Commerce and Finance. “We took full advantage of the opportunities offered by the growing passenger transportation market in both the scheduled and charter segments. The Group continued its sustainable growth on domestic and international routes. The Group utilised its significant capacity additions – up 14.2% year-on-year – efficiently, resulting in an increased load factor of 82.8%, 1.4 p.p. higher than in 2016. This is a particularly notable achievement given our already high load factor, which has now increased for three years in a row, adding a total of 5.1 p.p.”

“The financial results for the year reflect a normalisation of profitability and the effect of a number of market factors that had already had an impact on our 9M 2017 results. Yields came under pressure from a changing competitive landscape and international carriers adding capacity back into the Russian market, while the re-opening of the Turkish market led to structural changes in demand. On the other hand, higher oil prices and the change in ruble and currency correlation pattern rate put pressure on fuel costs, a key expense item accounting for 24.9% of operating costs. The key tools available to help us manage the impact of these macro factors are an efficient system for purchasing fuel on favourable conditions, as well as continued incremental improvements in fuel efficiency. In 2017 specific consumption was 22.8 g per seat-kilometre, a reduction of 0.6% year-on-year.”

Eleanor Steed
By Eleanor Steed March 1, 2018 10:49