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Company News

03 August 2015

Aeroflot boosts RAS revenue by 48.2% in 1H 2015

Moscow, 3 August 2015 — Aeroflot (Moscow Exchange ticker: AFLT) today announces the financial results of PJSC Aeroflot for the first six months of 2015 in accordance with Russian Accounting Standards («RAS»). RAS results are presented on an unconsolidated basis for PJSC Aeroflot only.

1H 2015 Highlights

• Revenue of RUB 156,605 million, a 48.2% year-over-year increase

• Commercial costs of RUB 47,022 million, a year-over-year increase of 3.3 times. The main reason for the increase is a change in accounting policy in respect of revenues and expenses under 100% code-sharing agreements. The change affected only the corresponding line in the company’s accounts, and not the overall financial result of the company.

• Management costs of RUB 3,813 million, a 12.5% year-on-year increase

• Net loss of RUB 1,063 million

Shamil Kurmashov, PJSC Deputy CEO for Finance and Network and Revenue Management, said:

"The primary impact on PJSC Aeroflot’s financial results for the first six months of 2015 was made by the macroeconomic environment, and specifically the ruble exchange rate which led to weaker consumer demand and put pressure on operating costs. These factors partially offset strong operating results at Aeroflot: passenger traffic was up 9.3% and the passenger load factor increased 0.4 percentage points on a year-on-year basis. This growth in operating results is particularly important given that in 1H 2015 the industry as a whole in Russia shrunk according to these same metrics.

"Additional factors impacting the financial results were a tariff policy designed to boost traffic in a period of ruble devaluation, as well as the results of hedging operations.

«The loss for the first half of 2015 is explained by results in the first quarter, which is a low season for the industry. That said, we are seeing positive trends, specifically a net profit of RUB 3,167 mln in the second quarter.

«In light of macroeconomic volatility, we continue to focus on generating efficiencies in our business in order to minimize the negative impact of external factors, and we remain confident that the Russian aviation market continues to have significant long-term growth potential.»

About Aeroflot

Aeroflot is Russia’s flagship carrier and one of the largest airline groups in Europe. In 2014, Aeroflot carried 23.6 million passengers (34.7 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 1,052 destinations in 177 countries worldwide. Aeroflot operates one of the youngest fleets in the world, numbering 162 Airbus, Boeing and Sukhoi airliners. 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 sixth time in 2015, Aeroflot has successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008, ISO 14001:2004 compliant. In 2015 Aeroflot was named by SKYTRAX as the Best Airline in Eastern Europe for the fourth time. Find more at www.aeroflot.com.