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Company News

30 July 2004

Aeroflot Net Income jump in the first half year

Aeroflot–Russian Airlines Net Income for six months of 2004 amounted to 3.2 billion RUR and exceeded the last year level by 78% or 1.4 billion RUR. Operating Result increased by 79.9% or 980 Mio RUR and amounted to 2.2 billion RUR.

Aeroflot revenues are 18% or 3.8 billion RUR higher vs. 2003 and are equal to 25.079 RUR. Expenses increased by 14.3% or 2.8 billion RUR.

Thus, Aeroflot reported ROS increase. The result is achieved thanks to Aeroflot active position in the sphere of revenue increase and cost reduction for the expenses which are under the Company control.

According to Mikhail Poluboyarinov, Aeroflot–Russian Airlines Deputy Director General for Finance and Planning, the increase of expenses is mostly determined by price growth for aviation fuel. In the first half of 2004 expenses for aviation fuel increased by 30%; aeronavigation expenses increased by 23.2% and airport fees for take-off and landing – by 32.5%.

Aeroflot–Russian Airlines (RTS: AFLT) is the largest Russian Company. The state owns 51 per cent of its stocks. It was established in 1923. It controls 11 per cent of home and 39 per cent of international market of air carriages of Russia. According to RAP net income amounted to 3 978 million rubles in 2003. In 2003 Aeroflot transported 5.9 million passengers. There are 92 airliners in its fleet. Its headquarter is located in Moscow in Sheremetyevo Airport. It is going to build its own terminal Sheremetyevo–3 by 2007. Apply for detailed information about the airline company on its web–sites www.aeroflot.ru, www.aeroflotbonus.ru.