Aeroflot’s revenue grew 30% in 2015

Aeroflot is better off as a state-run airline Aeroflot is better off as a state-run airline (Photo by Leonid Faerberg / transport-photo.com)

Aeroflot Group registered a total income of 415.17 million rubles (5.6 million dollars) in 2015, an increase of nearly 30% over the previous year’s income. The company experienced a four-fold increase of operational profits, with 2015 profits at 44.1 million rubles (almost 600 thousand dollars), according to an audited financial statement published today. Despite an increase in profitability, the group’s year-end result stands at a net loss of 6.5 million rubles.

Key financial highlights (source: Aeroflot Group)

RUB million, unless indicated otherwise

2015

2014

Change

Revenue

415,173

319,771

29.8%

EBITDAR1

103,118

48,673

111.9%

EBITDAR margin

24.8%

15.2%

9.6 p.p.

EBITDA1

58,703

24,839

136.3%

EBITDA margin

14.1%

7.8%

6.3 p.p.

Operating profit

44,107

11,268

Operating profit margin

10.6%

3.5%

7.1 p.p.

Loss for the period

(6,494)

(17,146)

(62.1%)

 

Regular passenger flights generated the largest share of Aeroflot’s revenues—343.43 million rubles, a 35.4% YOY increase. By contrast, revenues fell sharply in the charter flights sector, decreasing 59.1% to 6.14 million rubles. The airline’s strategy of decreasing its presence in the charter segment and tourist market dynamics are to blame for the sharp decrease in charter flights, a spokesperson from the Aeroflot Group explained. Cargo revenues in 2015 grew 10.5% to 9.63 million rubles.

Revenue (source: Aeroflot Group)

RUB million, unless indicated otherwise

2015

2014

Change

Passenger traffic revenue

349,574

268,636

30.1%

– scheduled passenger flights

343,428

253,613

35.4%

– charter passenger flights

6,146

15,023

(59.1%)

Cargo flight revenue

9,631

8,718

10.5%

Other revenue

55,968

42,417

31.9%

Total revenue

415,173

319,771

29.8%

 

 

Aeroflot’s deputy general director of finance, network and revenue management, Shamil Kurmashov, explained that the Aeroflot Group has taken heavy blows from the unfavorable economic situation, affecting the group’s results. “We took a number of measures to optimize our fleet and cut costs, which has enabled the group to curb the growth of operational expenses, despite the significant devaluation of the national currency,” said Kurmashov.

Aircraft maintenance and passenger service costs were most affected by the weakening ruble, the group reports. These costs increased to 75.19 million rubles, up 23.1%. Operational lease costs increased over 86%, while MRO rose 66.7%.

The operational lease expenses are nominated almost entirely in dollars, the report states. Their growth is explained by the exchange course fluctuations as well as fleet expansion by 9 new aircraft in 2015. LIBOR rate growth was another factor. In general, the operating costs, excluding fuel costs, grew 25% to 276.68 million rubles.

In addition those incurred expenses, the group’s financial results were affected by expenses associated with carrying extra passengers after Transaero’s bankruptcy in October 2015, Aeroflot noted, estimating these expenses at 17 billion rubles.

Operating costs (source: Aeroflot Group)

RUB million, unless indicated otherwise

2015

2014

Change 

Aircraft servicing and passenger services

75,186

61,070

23.1%

Staff costs

55,619

52,148

6.7%

Operating lease expenses

44,415

23,834

86.4%

Aircraft maintenance

32,042

19,224

66.7%

Sales and marketing, administration and general expenses

26,084

22,206

17.5%

Depreciation, amortisation and custom duties

14,596

13,571

7.6%

Other net expenses

28,742

29,251

(1.7%)

Operating costs less aircraft fuel

276,684

221,304

25.0%

Aircraft fuel

94,382

87,199

8.2%

Total operating costs

371,066

308,503

20.3%

 

 

In 2015, the Aeroflot Group, which includes Aeroflot, Rossiya, Donavia, OrenAir, Aurora and Pobeda, carried 39.4 million passengers, up 13.4% from the previous year.

Key operating highlights (source: Aeroflot Group)

2015

2014

Change

Passengers carried, thousand PAX

39,393

34,735

13.4%

– international

16,029

17,096

(6.2%)

– domestic

23,365

17,640

32.5%

Revenue Passenger Kilometres, million

97,636

90,075

8.4%

– international

52,953

55,107

(3.9%)

– domestic

44,683

34,968

27.8%

Available Seat Kilometres, million

124,741

115,834

7.7%

– international

68,490

72,219

(5.2%)

– domestic

56,252

43,615

29.0%

Passenger load factor, %

78.3%

77.8%

0.5 p.p.

– international

77.3%

76.3%

1.0 p.p.

– domestic

79.4%

80.2%

(0.8 p.p.)

 

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