Aeroflot announces 3Q and 9M IFRS financial results

Published on : Thursday, November 29, 2018

“Aeroflot Group has delivered a successful set of results for the third quarter – the high season and most important period of the year for any airline. The results are successful both operationally and financially, particularly in the context of the current environment in global commodity and currency markets, which to a greater or lesser degree impacts the results of all airlines, not just Russian carriers.


“Our decision to accelerate operational growth and increase carrying capacities during the third quarter has paid off by allowing us to grow passenger numbers while also increasing the load factor and maintaining positive yield dynamics. Group passenger numbers grew by 13.1% in the third quarter, bringing the increase in the first nine months of the year to 10.2%. We are therefore confident of achieving our previously announced operational targets for the full year.


“Revenue increased by 18.0% in the third quarter and was at a comparable level to the results of the second quarter. While revenue management remains a constant focus, this year we have strengthened our tactical use of capacity and load-factor management tools and introduced a number of other initiatives to reduce the risk of falling short of our revenue targets.


“We continued to maintain tight control of costs in the third quarter, and as a result revenue grew faster than costs during the period for the first time this year, in spite of currency pressures and the increased pace of fuel-price growth year-on-year, at 47%. For the first nine months of 2018 the cost of a tonne of jet fuel for the Group rose by 36% year-on-year.


“Our extensive programme to support our financial results – including initiatives on both the revenue and cost sides – has continued to deliver. Excluding fuel, CASK decreased by 2.3% in the third quarter despite increasing currency pressures on FX-denominated cost items.


“For the first nine months we recorded a net profit of RUB 22.5 billion. However, we have entered the fourth quarter with continued high jet fuel costs and excessive capacity in the market. Recent falls in the oil price will be reflected in aircraft fuel costs only in December. FX pressures on operating costs have not weakened, but rather somewhat strengthened. Aeroflot Group thus intends to maintain strict cost control in the fourth quarter. ”



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