Aeroflot posts net profit for 2025, revenue up and debt down

:: Alexey Pereslavtsev/Aeroflot

Driven by the achievement of its operational targets, the Aeroflot Group delivered solid financial results for the 2025 fiscal year. According to its published consolidated IFRS financial statements, the company reported revenue of 902.3 billion rubles, adjusted EBITDA of 185.0 billion rubles, and an adjusted net profit of 22.6 billion rubles. Russian credit rating agencies have reaffirmed the carrier’s ruAA rating with a stable outlook. Furthermore, the Group successfully reduced its total debt by 13.4% over the year.

Passenger traffic for the Group reached 55.34 million in 2025, matching the strong performance of the previous year. International traffic saw healthy growth, increasing by 5.2% to 13.4 million passengers, while domestic traffic experienced a slight decline of 1.4%, totaling 42.0 million. The seat load factor remained robust at 90.2%. Revenue growth was fueled by a 3.4% rise in passenger turnover, a 2.7% increase in capacity, and positive yield dynamics.

The Group’s total revenue increased by 5.3% compared to 2024, reaching 902.26 billion rubles. This growth was primarily driven by scheduled passenger services, where revenue climbed 5.8% to 844.41 billion rubles. Conversely, cargo revenue saw a decrease of 4.4%, amounting to 32.98 billion rubles.

Despite higher revenues, the company navigated both anticipated and emerging cost pressures. Operating expenses rose by 8.6% to 864.16 billion rubles, reflecting higher supply chain costs and expanded capacity. Increases were recorded across nearly all major expense categories, including passenger services, airport charges, staff costs, and aircraft maintenance.

Expenses related to airport and en-route aircraft services, as well as passenger handling, increased by 11.2% to 179.87 billion rubles, primarily due to higher airport tariffs and the rising cost of in-flight catering and services.

The payroll fund saw a substantial increase of 30.7%, reaching 130.47 billion rubles. This rise is attributed to enhanced compensation packages and salary adjustments for pilots, cabin crew, and engineering personnel.

After several years of volatility, aircraft fuel costs stabilized at 303.84 billion rubles. Although the average price per ton of jet fuel decreased by 4.1% over the year, it remained at an elevated level. However, a stronger ruble and other macroeconomic factors led to a significant reduction in fuel subsidy compensations.

Expenditure on maintaining airworthiness continued its upward trend. Maintenance, repair and overhaul (MRO) costs surged by 19.0% to 67.95 billion rubles, driven by more expensive spare parts, a 3.3% increase in flight hours, and expenses associated with maintaining aircraft under wet lease agreements.

During 2025, the Group made further progress in settling insurance claims with foreign lessors. Obligations for 30 aircraft were successfully converted to rubles, resulting in a positive one-off impact of 68.4 billion rubles in the financial statements.

This settlement helped boost reported EBITDA to 253.65 billion rubles. However, adjusted EBITDA, which excludes the insurance settlement and other one-off items, stood at 185.04 billion rubles, compared to 237.59 billion rubles in the prior year.

Financial income increased nearly threefold to 63.42 billion rubles, mainly due to a positive foreign exchange revaluation of lease obligations totaling 41.91 rubles billion.

Net profit for the year reached 105.50 billion rubles, a significant increase from 55.02 billion rubles in 2024. This figure incorporates the effects of the insurance settlement, positive currency revaluation, other one-off items, and adjustments to deferred tax assets and liabilities. Excluding these factors, the adjusted net profit for 2025 was 22.61 billion rubles.

The company’s financial health also led to an improved debt profile. The Group’s total debt was reduced by 13.4% over the year, while lease liabilities contracted by 33.6%, aided by the stronger ruble and the insurance settlement.

This robust financial position has been recognized by leading Russian rating agencies. Both Expert RA and ACRA have reaffirmed PJSC Aeroflot’s credit rating at ruAA with a stable outlook.