MOSCOW – Aeroflot Group publishes its condensed consolidated interim financial statements for the first nine months of 2019, in accordance with International Financial Reporting Standards. The results are published in accordance with the new IFRS 16 Leases standard.
Key financial highlights for 9M 2019:
- Revenue increased by 12.4% year-on-year to RUB 523,983 million;
- EBITDA amounted to RUB 141,675 million;
- Net profit totalled RUB 20,305 million.
Andrey Chikhanchin, PJSC Aeroflot Deputy CEO for Commerce and Finance, said: “The results of the third quarter – the high summer season – were positive for Aeroflot Group. The Group posted a net profit of RUB 29.1 billion for the quarter, and as a result generated a positive result of RUB 20.3 billion for the first nine months of 2019.
“These results were achieved through the development of our revenue and expense management initiatives, launching new services to improve passenger comfort and maintaining strict cost control. Along with simple decisions on the budgeting and financial control front, we implemented a number of initiatives to increase internal efficiency, including negotiations with partners to agree on more favourable financial terms. In 9M and 3Q 2019, CASK saw a slight increase of 3.0% and 1.2%, respectively.
“The 9M results should be considered in the context of external factors, including market trends during the first half of the year. The year began with consistently high fuel prices and FX pressures on the non-RUB component of our expenses, which contributed for our moderate results in the first half of 2019.
“While there have been no sharp jumps during 2019, fuel costs remained significantly above the historical average. Given passengers’ limited purchasing power, this put additional pressure on the Company’s financial results. In addition, in the second quarter, the closure of Pakistan's airspace led to additional fuel costs as flight times to destinations in Thailand, India and Vietnam increased.
“When comparing the results of the summer season with the same period last year, it is important to note that for June and July, the comparable period corresponds with the World Cup, which Russia hosted in 2018. Higher demand, primarily from overseas, and an increased load factor on the domestic route network, resulted in a high base effect in terms of yields that could not be further increased.
“Given excess capacity in the market and the continued growth of airport tariffs, management remains committed to strict cost control and the development of programmes to generate additional revenue streams.”
Tags: Aeroflot Group
