UTair climbs out of red ink

UTair posted the net profit of $32.63 million in the first nine months of 2016 (Photo by UTair)

Russia’s fourth largest airline UTair managed to climb out of the red ink at the end of nine months of 2016. The airline posted net profit of 2.110 billion rubles ($32.63 million) for this period according to Russian accounting standards, against the net loss of 2.482 billion rubles for the same period last year.

The airline’s revenue increased almost 13 percent to 43.495 billion rubles, whereas gross profit demonstrated even better dynamics. It grew more than 88% to 3.453 billion rubles.

At the end of the first half year according to the airline’s Russian accounting standards report, the carrier curtailed its net loss by 46% to 1.897 billion rubles. IFRS report for the same period, covering the entire UTair Group, showed the loss decreased 61% to 684.9 million rubles.

As of September 30 this year, the airline’s short-term liabilities increased 0.04% compared to the end of last year, to 84.803 billion rubles. At the same time long-term liabilities increased 19% to 24.960 billion rubles.

UTair’s main businesses are passenger and cargo transportation by airplanes and helicopters, and a variety of helicopter missions. It is Russia’s fourth airline by passenger traffic. From January to September its traffic increased 15.9% to 5.002 million passengers, against the general decline trend on the market.

Last year financial struggles forced UTair search for ways to optimize its operations. It radically cut its capacities, and restructured debt portfolio, thereby decreasing its financial obligations. Commenting on the results of these measures, the airline said in the spring, that it “experienced colossal effect from these activities and is ready to achieve financial targets approved by its creditors.”

“In terms of profitability, UTair has its plan target for 2016 and we are well on track to achieve it,” the airline claimed.