Aeroflot achieves peak financial performance since 2019

Russian flag carrier’s operating profit for the entire year 2023 reached 182.2 billion roubles, Q4 revenues showed a 72.5 per cent increase

Aeroflot good financial performance :: Aeroflot

Strong operational performance, driven by dynamic of both domestic and international passenger traffic, allowed Aeroflot Group to significantly improve its financial results in 2023. A number of indicators surpassed not only the 2021 figures, when sanctions were not yet imposed, but even the pre-Covid 2019 figures.

Despite being traditionally low season for air travel, last year’s Q4 demonstrated the strongest results due to steady demand. These are some of the conclusions drawn from Aeroflot’s freshly published 2023 IFRS consolidated financial statement.


Last year Russia’s largest airline group saw its revenue jumping by 48.1 per cent compared to 2022, to 612.2 billion roubles (US$6.7 billion). Operating revenue (scheduled passenger service only) increased by 52.7 per cent reaching 563.9 billion roubles, due primarily to improved RPKs. Revenue from cargo operations increased by 28.5 per cent to 25.1 billion roubles, as the volumes of cargo and mail grew 13.5 per cent. In Q4 the total revenue growth spiked to impressive 72.5 per cent.

For the entire year 2023 Aeroflot Group reduced its net loss by 3.6 times to 14.0 billion roubles, with several one-time items factored in. Adjusted to currency exchange rate, fleet settlements and other nonmonetary considerations, the Group achieved net profit of 10.3 billion roubles, for the first time since 2019.

The operating profit for the year was 182.2 billion roubles, including 111.7 billion roubles for Q4.

Notably, since Q2 Aeroflot has not received any subsidies as compensation for its operating costs. In 2022 such subsidies rendered a significant support to Russian airlines’ operating revenues and EBITDA. Thus, in 2023 the Group managed to achieve its target of replacing financial support from state with market revenues and a successful cost cutting program.

The Q4 resulted a unique period. Though traditionally a loss-making quarter due to air travel seasonality, the Group for the first time ended up with 8.3 billion rouble profits, even with adjustments factored in.

“The successful insurance claim settlement [with international leasing companies] for 76 aircraft was a milestone of the year. It was the resolution of legal discrepancies, a settlement of our obligations to our contractors – which is crucial for Aeroflot Group as a responsible business. But it was also a way to increase the number of aircraft, clean of registration in foreign rosters”, comments Andrey Chikhanchin, Aeroflot’s first deputy director for commerce and finance.

As a result, in 2023 Aeroflot Group doubled its international RPKs compared to 2022. Some 9.6 million passengers were carried on international routes, which not only exceeded the previous year international traffic, but resulted 13.1 per cent above 2021 level, although the international route network had been transformed and virtually relaunched. Along with that, the Group continued to focus on the domestic market, where its traffic hit the record high 37.7 million passengers.

Insurance settlement produced a significant positive effect on the Group’s financials, and in 2023 offset the negative effect of revaluation of the leasing portfolio.

“We work in the interests of our passengers, so it’s important to see that our service and product are popular with customers. The best illustration of this is the historic high seat load factor – 87.5 per cent in 2023. This year we are seeing the same high demand and high seat load factors exceeding the winter season average, and this gives us hope that the positive trend will continue”, says Chikhanchin.


Operating costs in 2023 remained roughly level with the previous year – 429.9 billion roubles (up 0.8 per cent on 2022). The rise in the costs due to expansion of flight schedule and 19.9 per cent increase of capacity was offset by the revenues from insurance settlement. Costs of fuel, airport charges and aircraft maintenance were on the rise, primarily due to increased number of flights and the price policies of contractors.

Fuel costs increased 31.5 per cent on the previous year to 219.2 billion roubles due to an increase in the flight schedule. The fuel price spikes (12.2 per cent last year) remain a major challenge for the aviation industry. The fuel buffer compensations only partly mitigated the impact of the high fuel costs. With the fuel costs excluded, the operating costs actually decreased by 19.0 per cent to 210.8 billion roubles.

The increase of airport charges coupled with expansion of the flight program led to an increase of aircraft and passenger handling costs by 37.2 per cent to 112.9 billion roubles.

Labor costs increased by 9.7 per cent to 77.5 billion roubles. In Q4 the labor costs climbed as operations picked up.

Continued airworthiness and flight safety is Aeroflot’s indisputable priority. The aircraft maintenance, repair and overhaul (MRO) costs increased by 81.7 per cent compared to the previous year, to 23.3 billion roubles. The significant increase is explained by the shift of a number of scheduled maintenance operations from 2022 (when the spare part logistics had to be fully revised) to 2023.

The IT costs reduced to 4.0 billion roubles, due mainly to the migration to Russian inventory and distribution system Leonardo in November 2022. The replacement of the western GDS with the local one was one of the most critical projects ensuring the sovereignty of the Group from foreign IT providers.

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