Aeroflot announces FY 2016 IFRS financial results

Published on : Thursday, March 2, 2017

aeroflotAeroflot Group today published audited financial results in accordance with International Financial Reporting Standards for the year ending 31 December 2016.


Key 2016 financial results for Aeroflot Group:

 Revenue increased by 19.4% year-on- year to RUB 495,880 million;

 EBITDAR amounted to RUB 137,567 million, up 33.4% year-on- year, while EBITDAR margin increased by 2.9 p.p, to 27.7%;

 EBITDA amounted to RUB 78,004 million, rising 32.9% year-on- year, while EBITDA margin grew by 1.6 p.p. and amounted to 15.7%;

 Operating profit amounted to RUB 63,254 million, up 43.4% year-on- year;

 Net profit totalled RUB 38,826 million.


Shamil Kurmashov, PJSC Aeroflot Deputy CEO for Commerce and Finance, commented:  "Aeroflot's IFRS financial results improved significantly in 2016. This was underpinned by growth and development of the business, a net positive foreign exchange effect on revenues and costs while maintaining tight control of operating expenses thanks to a high level of digitalisation, and also the effect of operating leverage due to higher passenger load factors.


Group revenues rose by 19.4% year-on- year and amounted to RUB 495.9 billion. This growth was supported by increased volumes, as well as a positive FX effect from foreign currency denominated revenues. Group passenger traffic grew 10.3% to 43.4 million passengers as a result of sustained high demand for domestic flights, but also thanks to the launch of new international routes and increased frequency of flights amidst a gradual recovery in demand in the international segment. In addition to scheduled passenger traffic, which rose by RUB 60.3 billion year-on-year, the charter segment returned to growth during the reporting period in connection with the launch of a charter programme.


As a result,overall revenue from passenger traffic grew by RUB 11.5 billion year-on-year. The addition of new wide-body aircraft to the Group’s fleet enabled growth of cargo revenues by RUB 3.0 billion.


"As a result of the currency factor, the net positive effect on operating profit amounted to RUB 14 billion,which was made possible thanks to efficient revenue management and tight control of operating costs. In the fourth quarter the Russian rouble strengthened against international currencies, which became an additional factor affecting operating expense dynamics.


"Operating leverage was another factor that positively affected profitability. Passenger load factors for the Group rose by 3.2 p.p. to 81.5%, which enabled the Group to earn additional revenue without increasing fixed costs."As a result of these factors operating profit for the twelve months of 2016 grew by 43.4% year-on- year to RUB 63.3 billion. EBITDA increased by 32.9% to RUB 78.0 billion, while EBITDA margins rose by 1.6 p.p. to 15.7%. Net profit for the period amounted to RUB 38.8 billion.


In the past year we managed to make significant progress, both operationally and financially, on the path to achieving the Group's long-term strategic goals. Accelerated growth of our operating indicators in the fourth quarter of 2016 together with emerging macroeconomic improvements allow us to have an optimistic outlook for 2017 and the Group's development prospects.



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