Aeroflot’s profit skyrockets

The Aeroflot Group’s net profit increased 24 times in the first three quarters of 2016 Aeroflot registered $673 million of profit in the first nine months of 2016 (Photo by Aeroflot)

The Aeroflot Group’s net profit increased 24 times in the first three quarters of 2016 to hit 43.79 billion rubles ($673 million). The company’s IFRS report states business growth, net-positive effect of currency exchange rate and strict operating cost management are the reasons for the demonstrated upward trend.

The group’s operating income in 9M 2016 grew by 81.8% and reached 66.92 billion rubles while the revenues of Aeroflot and its subsidiaries comprised 381.3 billion rubles (23.2% higher vs. 2015).

Aeroflot explains the company’s efforts to bring down specific fuel consumption per seat-kilometer as well as improved fuel supply efficiency have also contributed to the economic grow in the reported period. Besides, the increased seat occupancy allowed the airline to grow the profit while keeping the costs stable. The company’s passenger load factor is now 82.4% which is up 3.1%.

The group’s passenger flow increased by 9.2%, to 32,8 million people, in January-September year-on-year. Regular flight profits went up 21.3% to 313.2 billion rubles while charter flights income grew more than three times to 13 billion rubles. The later was partially achieved due to recently launched charter program of the subsidiary airline Rossiya.

The company’s cargo flights registered an 8.2-billion profit (+27.1% year-on-year) while the volume of transported cargos and mail grew by 24.1%. However, the Group registered 24% higher costs for aircraft maintenance services which are mainly attributed to ruble depreciation.

Previously, Aeroflot disclosed its M9 2016 report under Russian accouting standards indicating the group’s net profit increased sixfold to 42.8 billion rubles.

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