Aeroflot climbs back to profitability

At the end of the first half of 2016 Aeroflot posted 8 billion rubles ($121.4M) net profit At the end of the first half of 2016 Aeroflot posted 8 billion rubles ($121.4M) net profit (Photo by Aeroflot)

At the end of the first six months of 2016, Aeroflot posted a net profit of 8.014 billion rubles ($121.4 million), according to Russian accounting practice. The airline closed the same period last year with a 1.063 billion ruble loss. This year’s financial success was due in part to traffic growth, including on international routes, which generate revenue in currency. Other contributors to the balance level-off were sale of several aircraft, which were operated on the terms of financial leasing and the cancellation of orders for several new aircraft with following refund of advance payments.

The airline’s revenue increased 24% year-on-year, to 194.2 billion rubles, while the gross profit grew 2.14 times, to 19.129 billion rubles. From January to June, Aeroflot’s traffic increased 12.2% YOY, to 13.438 million passengers. Contrary to the general market trend, the airline’s international traffic grew 6.7%, to 6.783 million passengers.

Since the beginning of the year, Aeroflot phased out 10 narrow-body aircraft – five Airbus А319, an А320 and four А321s. At the same time it renovated the fleet with three Boeing 737-800s, a Boeing 777-300ER, four A320s and five SSJ 100s.

A consolidated report for the entire Aeroflot Group according to international accounting standards is expected shortly. According to industry experts cited by Vedomosti, these results are expected to be less encouraging, with Aeroflot’s subsidiaries’ performance factored in. At the end of the first six months of 2015, the group posted consolidated loss of 3.541 billion rubles.

 

 

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