{:en}The Aeroflot group recorded a profit for the first nine months of 2018


The Aeroflot group in the first nine months of 2018 took profit, whereas in the I quarter and in the first six months, the company reported loss. These data derive from statements in accordance with IFRS. The group posted a net profit of RUB 22.5 billion in comparison with the same period in 2017, a decline of 17.2%.

In the third quarter of 2018, which is high season in aviation, Aeroflot continued its positive momentum in the April–June. Its net profit for July–September rose 14.2%, to 27.7 billion rubles.

Proceeds of “Aeroflot” continues to grow: in January–September it increased by 15.2% (to 466.3 billion rubles), for the III quarter — by 18.0% (to 200.5 bn).

Growth rate of revenue over expenditure the group managed to achieve despite the fact that the price of jet fuel increased by 47% versus the third quarter of 2017, and for the nine months — by 36.0%. The carrier costs for jet fuel from July to September rose by 60.3 per cent (to 54.1 billion roubles) and 46.7% (to 132,0 bn) since the beginning of the year, including for the replenishment of the Park and increasing sun plaque. At the same time, the expansion of the fleet contributed to the further growth of passenger traffic in the third quarter, it increased by 13.1% (transported 17.4 million people) in nine months — 10.2% (transported 42.2 million people), said the Deputy General Director for Commerce and Finance Andrei Chikhanchin.

The fastest growing revenue from Charter services — 36.5% (up to 14.2 billion rubles) and by 34.2% (to 30.6 bn) in the third quarter and nine months, respectively. This is caused mainly by the increase in the specific yield of such transport and Charter program of “Rossiya airlines”. Revenues on other types of transport also shows growth. For the third quarter of indicators passenger traffic increased by 18.7% (up to 177,6 billion rubles), regular — 17.3% (up to 163,4 billion rubles) and cargo — 13.2% (to 4.7 billion rubles)., and from January to September was 17.0% (up to 410,0 billion RUB), 15,8% (up to 379,4 billion rubles) and 13.6% (12.8 billion rubles), respectively.

Costs for technical aircraft maintenance increased by 11.2% (to 11.8 bn) for the third quarter and 22.0% (32.0 billion RUB) nine months, mainly due to the increase of the fleet operator. Compared to 30 September 2017 the increase in the number of aircraft in operating leases 21.8% — 57 aircraft. The costs for leasing from July to September rose by 40.9% (up to 24.0 billion RUB.) and by 33.7% (to 63.8 bn) since January to September.

The Aeroflot group has also provided information on financial results in its low-cost segment. Net profit low-cost “Victory” has decreased in the third quarter and first nine months of 2018 indicators fell by 4.3% (3.1 billion rubles) and 10.1% (to 3.3 billion rubles), respectively. The revenue of the carrier, however, shows a growth of 64.8 per cent (to 12.7 bn) from July to September, and by 65.5% (to 26.5 bn) from January to September.

Last year “Aeroflot” has finished with profit under IFRS. Positive financial result the largest group of carriers of the Russian Federation was achieved by the results the parent airline and low cost airline “Victory”.

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