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Company News

28 October 2008

Board of Director's ...

Results of Aeroflot’s board of directors’ meeting

Moscow, 28th October 2008: On the 27th October 2008, Aeroflot’s board of directors’ meeting took place, it was held by the members elected on 11th October at the extraordinary general meeting. I. E. Levitin, Russian Minister of Transport was elected as the board’s chairman.

At the meeting the financial result of the company for the first nine months were presented.

Aeroflot flew 7.138 million passengers, a total of 20,791 million Revenue Passenger Kilometers (RPK) was achieved, while passenger load factor was at 71.8 %. Compared to 2007, the growth in passenger numbers was recorded at 14.8 %, the growth in RPK 10.7 %.

For the first nine month of 2008, after-tax profit was calculated at 5,840.7 million RUB (240.8 million USD), which is 646.8 million RUB (30.7 million USD) more, than had been estimated for this period. During the reference period last year, results declined by 2,826.6 million RUB (95.8 million USD).

In addition, the board of directors evaluated the crisis management package of measures, introduced to increase the efficiency of Aeroflot’s operational and commercial activities.

Given the circumstances of a shift in economic conditions, the mentioned measures are aimed at the maximization of expected profit in comparison with the projected numbers as well as at the mobilization of available structural resources and the cooperation of all the company’s key divisions.

First priority within the crisis management program is flight network optimization (assessment and adjustment of routes) and the improvement of cooperation across departments in the process.

To further increase economic efficiency, it is intended to raise the rate of return of other areas as well: sales performance, ground dispatch, engineering, flight operations, and the reduction of indirect costs.