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Company News

30 June 2014

Aeroflot Announces Traffic Statistics for May and 5M 2014

MOSCOW, 30 JUNE 2014 — JSC Aeroflot («the Company», Moscow Exchange ticker: AFLT) announces operating results of the Company and Aeroflot Group («the Group») for May 2014 and the first five months of 2014.

Highlights

Aeroflot standalone:

• Passenger traffic in May 2014 totalled 1.9 mln. This represented 13.7% year-on-year growth, significantly above the overall Russian industry growth rate for the period of 4.8%. This increase was primarily due to a 28.8% year-on-year rise in domestic traffic, driven in part by increasing flights on high-demand routes and adding available capacity. International traffic rose 2.3% year-on-year in May 2014. This modest growth was the result of reduced capacity on tourism routes (Larnaca, Heraklion and Antalya) following the withdrawal of Il-96 aircrafts from the fleet. As of now, the Company’s uses more efficient and smaller capacity aircraft (A-320) and no longer operates blocked-off charter flights (the least profitable capacity segment) on these routes. Lower frequency of flights to Kiev and Odessa and cancellation of flights to Donetsk and Kharkov as well as reclassification of flights to Simferopol as domestic were among other factors impacting international traffic. For 5M 2014, passenger traffic totalled 8.8 mln, a 15.9% year-on-year increase and faster than the 8.6% year-on-year increase for the industry as a whole.

• Revenue passenger kilometres («RPK») for May 2014 totalled 5.4 bln, a year-on-year increase of 13.3%. RPKs for domestic flights were up 23.4% year-on-year, while RPKs on international flights rose 7.9% year-on-year. RPK growth for the industry as a whole was 2.0% year-on-year. For 5M 2014, the Company’s RPKs increased 12.5% year-on-year to 25.2 bln. This growth was also considerably faster than the 3.2% year-on-year increase for the industry as a whole.

• In the first five months of 2014 the Company expanded its fleet, including 13 new Airbus A320s, two new Boeing 737-800 and six new Boeing 777-300ERs. These additions contributed to a 12.5% year-on-year rise in available seat kilometres («ASK») for May 2014 and a 13.9% year-on-year increase for 5M 2014. The new factory-direct planes also contributed to the ongoing modernisation of the fleet, which is now one of the youngest in Europe.

• The passenger load factor increased by 0.6 percentage points year-on-year in May 2014 to 74.5%. For 5M 2014, the passenger load factor was 75.5%, representing a 0.9 percentage point year-on-year decrease. The load factor for 4M 2014 decreased 1.4 percentage points, implying a slowdown in the pace of decline.

• Flight hours of the Company’s fleet for May 2014 and 5M 2014 increased by 9.7% and 10.1% year-on-year, respectively. While consistently growing the scale of its operations, Aeroflot continues to be one of the most punctual airlines in Europe. In May 2014, Flightstats named Aeroflot the world’s most punctual airline.

Aeroflot Group:

• Total passenger traffic for May 2014 was 2.9 mln, up 9.5% year-on-year. The main factor driving passenger traffic growth was a 20.8% increase in domestic traffic. International traffic for May 2014 was up 0.2% year-on-year. The modest growth rate of international traffic was influenced by restructuring of the route networks of OrenAir, Rossiya and Aurora aimed at opening new high-potential routes and discontinue service on unprofitable routes. Passenger traffic for 5M 2014 increased 11.1% year-on-year to 12.3 mln.

• May RPK increased 5.9% year-on-year to 7.3 bln. RPKs on domestic and international flights were up by 13.8% and 1.5% year-on-year, respectively. Aeroflot Group’s RPK for 5M 2014 increased 3.7% to 32.3 bln.

• The passenger load factor for May 2014 increased by 1.1 percentage points year-on-year to 74.4%.

Other events:

• In 2013 JSC Aeroflot discontinued its dedicated cargo fleet, switching to belly cargo operations. This was the main reason that cargo and mail carried decreased 31.8% year-on-year in May 2014.

The tables below provide key operating results for JSC Aeroflot and Aeroflot Group.

Aeroflot standalone traffic figures

 

May

2014

May

2013

Change

5M

2014

5M

2013

Change

Passengers carried (000s)

1,935.8

1,702.8

13.7%

8,828.8

7,618.7

15.9%

Revenue Passenger Kilometres (mln)

5,403.0

4,767.7

13.3%

25,178.0

22,387.5

12.5%

Available Seat Kilometres (mln)

7,253.0

6,447.2

12.5%

33,364.2

29,292.6

13.9%

Passenger Load Factor

74.5%

73.9%

0.6 p.p.

75.5%

76.4%

(0.9 p.p.)

Flight hours for fleet (hours)

46,968

42,833

9.7%

219,137

199,051

10.1%

Cargo and mail carried (tonnes)

10,839.5

15,894.8

(31.8%)

56,156.0

75,280.3

(25.4%)

Revenue Tonne Kilometres (mln)

536.8

518.1

3.6%

2,525.0

2,438.9

3.5%

Available Tonne Kilometres (mln)

902.8

856.9

5.4%

4,129.4

3,885.9

6.3%

Revenue Load Factor

59.5%

60.5%

(1.0 p.p.)

61.1%

62.8%

(1.7 p.p.)

Revenue Cargo Tonne Kilometres (mln)

50.6

89.0

(43.1%)

259.0

424.1

(38.9%)

Aeroflot Group traffic figures

 

May

 2014

May

 2013

Change

5M

2014

5M

2013

Change

Passengers carried (000s)

2,858.5

2,609.9

9.5%

12,294.9

11,062.7

11.1%

Of which international

1,429.8

1,426.8

0.2%

6,249.3

6,253.9

(0.1%)

Of which domestic

1,428.7

1,183.1

20.8%

6,045.6

4,808.8

25.7%

Revenue Passenger Kilometres (mln)

7,340.8

6,929.2

5.9%

32,321.6

31,174.1

3.7%

Of which international

4,514.3

4,445.9

1.5%

20,543.5

21,204.8

(3.1%)

Of which domestic

2,826.5

2,483.3

13.8%

11,778.1

9,969.3

18.1%

Available Seat Kilometres (mln)

9,868.7

9,447.2

4.5%

43,467.7

41,349.3

5.1%

Of which international

6,273.3

6,106.6

2.7%

27,895.5

27,763.3

0.5%

Of which domestic

3,595.4

3,340.6

7.6%

15,572.2

13,586.0

14.6%

Passenger Load Factor

74.4%

73.3%

1.1 p.p.

74.4%

75.4%

(1.0 p.p.)

Of which international

72.0%

72.8%

(0.8 p.p.)

73.6%

76.4%

(2.8 p.p.)

Of which domestic

78.6%

74.3%

4.3 p.p.

75.6%

73.4%

2.2 p.p.

Flight hours for fleet (hours)

69,528

66,956

3.8%

309,974

297,248

4.3%

Cargo and mail carried (tonnes)

12,378.8

18,376.9

(32.6%)

63,959.3

86,620.5

(26.2%)

Of which international

6,080.4

11,587.5

(47.5%)

34,143.7

56,479.6

(39.5%)

Of which domestic

6,298.4

6,789.4

(7.2%)

29,815.6

30,140.9

(1.1%)

Revenue Tonne Kilometres (mln)

714.1

719.8

(0.8%)

3,183.0

3,261.7

(2.4%)

Of which international

434.9

467.6

(7.0%)

2,008.0

2,242.7

(10.5%)

Of which domestic

279.2

252.2

10.7%

1,175.0

1,019.0

15.3%

Available Tonne Kilometres (mln)

1,179.2

1,185.7

(0.5%)

5,203.7

5,207.5

(0.1%)

Of which international

749.2

780.1

(4.0%)

3,345.0

3,565.1

(6.2%)

Of which domestic

430.0

405.6

6.0%

1,858.7

1,642.4

13.2%

Revenue Load Factor

60.6%

60.7%

(0.1 p.p.)

61.2%

62.6%

(1.4 p.p.)

Of which international

58.1%

59.9%

(1.8 p.p.)

60.0%

62.9%

(2.9 p.p.)

Of which domestic

64.9%

62.2%

2.7 p.p.

63.2%

62.0%

1.2 p.p.

Revenue Cargo Tonne Kilometres (mln)

53.5

96.2

(44.4%)

274.0

456.0

(39.9%)

Of which international

28.6

67.5

(57.6%)

159.1

334.2

(52.4%)

Of which domestic

24.8

28.7

(13.6%)

114.9

121.8

(5.7%)

Investor enquiries

Aeroflot Investor Relations

+7 495 258 0686

ir@aeroflot.ru

Media enquiries

Aeroflot Press Service

+7 (495) 752-90-71

+7 (499) 500-73-87

presscentr@aeroflot.ru

Russia

Tom Blackwell

+7 (919) 102-90-64

blackwell@em-comms.com

UK/Europe

Peter Morley

+44 7927 186 645

morley@em-comms.com

North America

Quinn Martin

+1 646 629 5502

quinn@frontierpr.com

About Aeroflot

Aeroflot is Russia’s flagship carrier and one of the largest airline groups in Europe. In 2013, its 90th anniversary year, Aeroflot carried 20.9 million passengers (31.4 million passengers as Aeroflot Group including subsidiaries), a record for any Russian airline. A proud member of the SkyTeam global airline alliance, Aeroflot and its partners serve more than 1,000 destinations in 178 countries worldwide. Aeroflot operates one of the most modern and youngest fleets in Europe, numbering 156 Airbus, Boeing and Sukhoi airliners with an average age of 4.3 years. Aeroflot is among the global leaders in aviation safety. The company’s European Community Safety Assessment of Foreign Aircraft (SAFA) Index, which is the main globally recognized safety parameter, is comparable to global peers. The first Russian carrier to enter the IATA Operational Safety Audit (IOSA) register, renewing its registration for the fifth time in 2013, Aeroflot has successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008 compliant. In 2013, Aeroflot was named by SKYTRAX as the Best Airline in Eastern Europe for the second time. Find more at www.aeroflot.com.