Nine month loss for Aeroflot

Dino D'Amore
By Dino D'Amore December 2, 2014 22:26

Nine month loss for Aeroflot

Aeroflot’s revenue amounted to RUB 236,698 million for the nine months of 2014, up 6.5% year-on-year; EBITDAR was RUB 40,180 million resulting in an EBITDAR margin of 17.0%. EBITDA was RUB 23,559 million resulting in an EBITDA margin of 10.0%. The airline group posted a loss of RUB 3,563 million; with an adjusted net profit of RUB 12,907 million.

Shamil Kurmashov, JSC Aeroflot Deputy CEO for Finance and Network and Revenue Management, said: “Despite the increasingly challenging economic and geopolitical environment, Aeroflot and its subsidiaries successfully increased their passenger traffic on domestic routes and the majority of international routes, which contributed positively to year-on-year revenue growth in nine months 2014.

“However, in the third quarter Russian airlines faced serious challenges, in particular a sharp decline in the rouble exchange rate versus key foreign currencies, as well as continued weakening of consumer demand and a downturn in the tourism industry. “All these factors, as well as non-recurring events, impacted our financial performance. After adjustments for foreign exchanges losses, however, the Group remained profitable both in the third quarter and in nine months 2014.”

Aeroflot Group’s revenue increased by 6.5% year-on-year to RUB 236,698 million during 9M 2014, mainly due to growth in revenue from scheduled passenger flights and other revenue. The Group’s passenger traffic increased 10.5% year-on-year, which helped lift revenue from scheduled passenger flights up 6.4% year-on-year, totalling RUB 188,834 million. The Group’s revenue from charter passenger flights was RUB 13,340 million, up 1.9% year-on-year. The slowdown in growth of charter passenger flights revenue was mainly due to overall market developments in this segment, as well as to JSC Aeroflot ceasing to carry passengers under block charter agreements (the least profitable passenger segment).

Revenue from cargo flights was down year-on-year, mainly due to JSC Aeroflot’s decision to discontinue operations of its dedicated cargo fleet in 2013, switching to belly cargo operations.

Among the key drivers of the 16.7% year-on-year growth in other revenue to RUB 28,556 million were increased airline agreements revenue, revenues related to the Aeroflot Bonus programme and refuelling services revenue.

Dino D'Amore
By Dino D'Amore December 2, 2014 22:26