Aeroflot Group (“the Group”, Moscow Exchange ticker: AFLT) today publishes its condensed consolidated interim financial statements for the nine months ended 30 September 2020, in accordance with International Financial Reporting Standards.
Key financial highlights for 9M 2020:
- Revenue decreased by 55.3% year-on-year to RUB 234,213 million;
- EBITDA amounted to RUB 31,180 million;
- The net loss totalled RUB 79,406 million;
Andrey Chikhanchin, PJSC Aeroflot Deputy CEO for Commerce and Finance, said:
“In the third quarter of 2020 Aeroflot Group carried 10.1 million passengers, 9.5 million of whom flew on domestic routes, compared to 1.7 million passengers in the second quarter 2020, at the height of the lockdown and when flight restrictions were at a peak. Given the many operational and economic challenges currently facing the aviation sector, our gradual restoration of passenger traffic, driven primarily by the domestic segment, is being achieved in a financially prudent manner. Although the loss for the reporting period was to be expected due to the unprecedented impact of the pandemic and continued suspension of most of our international operations, it is lower on a quarter-on-quarter basis, at RUB 21.1 billion in the third quarter compared to RUB 35.8 billion in the second quarter.
“Though all key business segment posted improved performance in the third quarter, Pobeda’s results deserve particular attention as virtually the first airline and the only major carrier anywhere in the world to grow passenger numbers in Q3 2020, with traffic up by 12.0% year-on-year, and the load factor recovering to 95%. On the back of these strong operational results, the LCC segment delivered robust financial performance, reporting a net profit in both the third quarter and the first nine months of 2020, thereby underscoring its strength and the resilience of its business model.
“Thanks to growth of passenger numbers in the third quarter, Aeroflot Group increased revenue quarter-on-quarter by RUB 59.4 billion to RUB 84.9 billion, while operating costs increased by RUB 37.1 billion to RUB 95.5 billion. EBITDA improved by 22.1 billion RUB compared to the second quarter, and amounted to 20.1 bn RUB. Revenue growth outpacing the increase in costs even as flight volumes recovered illustrates our balanced approach to restoring capacities, as we sought to strike a balance between passenger numbers and our financial performance, as well as the results of numerous optimisation initiatives and strict cost control.
“The low season of fourth quarter 2020 and first quarter 2021 will remain challenging for all airlines, which are continuing to operate in an environment of restrictions on top of the traditional seasonal decline in demand. Aeroflot Group continues to pursue a conservative approach to capacity deployment as well as making seasonal adjustments. We have been able to build up our liquidity thanks to our RUB 80 billion secondary public offering and secured credit facilities, which include loans with RUB 70 billion of state guarantees. This gives Aeroflot Group the resources it needs to fulfill its financial obligations to partners and restore operational volumes once markets resume their recovery”.
Tags: Aeroflot Group
