Aeroflot posts 107.8 billion roubles 1H net profit

:: Aeroflot

Aeroflot reported 5.8 billion roubles in adjusted net profit for the first six months of the year as revenues reached 350.2 billion roubles. International traffic growth supported the continuous climb of operational profitability, says the company’s 1H financial report (according to Russian accounting practices, on a stand-alone basis).

Russia’s major airline gained 350.2 billion roubles in revenues during January-June period, up 12.2 per cent on the same period last year, fed by higher revenues from Aeroflot’s own passenger flights and cargo transportation, as well as commercial management of partner airlines.

The upward trend was driven by 7.2 per cent growth of Aeroflot’s revenue-passenger-km, a 1.2 percentage points improvement of seat load factor, which rose to 88.1 per cent. International traffic growth, which outpaced domestic segment dynamics 12.9 per cent against 2.5 per cent, respectively, had a positive impact on the operational profitability. In Q2 revenue grew 12.0 per cent reaching 187.0 billion roubles.

Cost of sales increased by 15.4 per cent to 349.5 billion roubles. The main factors behind cost spike were 5.7 per cent increase in ASK as well as continuous growth of suppliers’ prices. About half of the cost increase is due to expanded operations under commercial management scheme, as Aeroflot’s flights operated within the Shuttle program (high frequency flights connecting Moscow and St. Petersburg) were transferred to sister carrier Rossiya Airlines, as well as wet lease of aircraft with flight and cabin crews from local partner airline. The remaining cost increase is linked to increasing labor costs, maintenance, airport and handling fees.

In fact, in Q2 the rate of cost growth slowed down to 12.4 per cent, which is comparable to the revenue growth rate.

Fuel costs increased by 4.3 per cent or 3.8 billion roubles due to increase of operational results.

Ground handling costs increased by 14.7 per cent or 4.8 billion roubles due to increased airport fees, aeronavigation service fees and expanded international flight program.

Aircraft maintenance, repair and overhaul (MRO) costs increased by 7.4 billion roubles or 22.4 per cent as spare part and component prices went up, and flight time increased by 4.7 per cent.

From October 2024 the airline raised flight crew salaries, and starting from Q1 2025 the raise also includes cabin crew and engineering personnel, which drove up labor costs.

The 1H gross profit stood at 687 million roubles, compared to 9.2 billion roubles for the same period of 2024, which reflects a number of cost and revenue factors. In Q2 the company received 8.1 billion of gross profit, up 4.9 per cent on the same period last year.

Net profit for the first six months of 2025 was 107.8 billion roubles including a number of one-time non-monetary effects. Adjusted against currency revaluation, insurance and subsidiary dividends, the net profit for the first half of the year is 5.8 billion roubles, for Q2 – 4.1 billion roubles.