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Company News

22 December 2016

AEROFLOT ANNOUNCES THE RESULTS OF BOARD OF DIRECTORS MEETING

Moscow, 22 December 2016. – PJSC Aeroflot (MOEX ticker: AFLT) announces the results of a regular meeting of the Board of Directors which was held on December 22, 2016. The meeting was chaired by Kirill Androsov.

The meeting agenda included the following items:

Aeroflot Group’s consolidated budget indicators for 9M of 2016. In 9M of 2016 Aeroflot Group (“the Group”) increased its market share. Total Russian passenger traffic in 9M of 2016, including passengers of international carriers, amounted to 78.7 million. The share of passengers carried by Aeroflot Group increased by 5.0 percentage points (p.p.) year-on-year to 41.7%. Aeroflot airline’s and the Group’s passenger plans were fulfilled by 100.2% and 100.5%, respectively. Group revenue amounted to RUB 381.3 billion, an increase of 23% year-on-year. Net income increased to RUB 43.8 billion. The Group’s Total debt/EBITDA ratio decreased. In 3Q 2016 key performance indicators (KPIs) of the Aeroflot Group Long-term Development Programme, and those of the PJSC Aeroflot CEO, were achieved.

Implementation of Aeroflot Group’s Long-term Development Programme (as of the end of 9M of 2016).
The drafting and quarterly review of a report regarding the implementation of the Long-term Development Programme (LDP) is mandated by the Government of the Russian Federation and the Board of Directors. Aeroflot Group’s LDP is being implemented efficiently; major items of the programme have already been implemented. Key development objectives have been achieved, which delivered growth across PJSC Aeroflot’s key operating results.

The Board of Directors approved the report as well as changes proposed for inclusion in the updated Aeroflot Group LDP for 2016-2021, specifically:

– an update to Aeroflot Group’s investment plan for 2016-2017;

– an update of the list of PJSC Aeroflot’s key 2017 investment projects;

– an update of the list and weighting of Aeroflot Group’s KPIs for 2017-2021.

On the implementation of provisions of the Corporate Governance Code. Progress on implementation of key objectives outlined in PJSC Aeroflot’s Corporate Governance improvement roadmap is considered positive. PJSC Aeroflot has demonstrated significant progress in improving its corporate governance practices. The major part of the Code has been introduced into the day-to-day running of the company. The remaining provisions of the Code are being studied and will be introduced as soon as the company finishes the plan which outlines the deadlines and corporate procedures necessary for the implementation. An audit will be carried out once the implementation of the provisions is complete.

The Board of Directors approved the 2017 KPIs for Aeroflot Group’s LDP and the PJSC Aeroflot CEO as well as Aeroflot Group’s Registry and Risk Map.

 

About Aeroflot

Aeroflot is Russia’s flagship carrier and one of the largest airline groups in Europe. In 2015, Aeroflot carried 26.1 million passengers (39.4 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 1,057 destinations in 179 countries worldwide. Aeroflot operates one of the youngest fleets in the world, numbering 190 Airbus, Boeing and Sukhoi airliners. Aeroflot is among the global leaders in aviation safety, with a European Community Safety Assessment of Foreign Aircraft (SAFA) Index, the main globally recognized safety parameter, 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 2016 Aeroflot became the first Russian airline to be awarded Four Star Airline status by Skytrax in recognition of the high-quality of its customer service, and was also named Best Airline in Eastern Europe for the fifth time at the Skytrax World Airline Awards. In 2015 Global Traveler named Aeroflot one of the 10 best airlines worldwide for on-board cuisine. Find out more at www.aeroflot.com