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Company News

28 April 2004

Aeroflot board of directors approved amount of dividends for 2003

On April 26, 2004, Aeroflot Board of Directors recommended the annual stockholders meeting on the results of 2003 financial year to pay out 12.2 per cent of net income in the amount of 485 316 700 rubles or 43 kop. per a stock that is by 48.3 per cent more than in 2002. (In 2001 dividends amounted to 66 637 000 rubles; in 2002 – 322 078 700 rubles.)

The Board of Directors approved the draft of annual report and annual income statement. Net income according to the operating results of 2003 was approved in the amount of 3978.0 million rubles that exceeded the results of 2002 by 779.5 million rubles or by 24.4 per cent.

Summing up the airline company’s operating results in 2003 financial year the Board of Directors stressed the steady improvement of operating results according to main indicators. In 2003 5.6 billion rubles were transferred to the state budget as taxes; this amounted to more than 375 000 rubles for one employee. The state is to receive more than 238 million rubles as dividends according to operating results of 2003.

Within this period 5 843 500 passengers were carried; there were made more than 62 000 flights. Passenger seats’ occupation rate achieved the average level of the Association of European Airlines and amounted to 69.4 per cent.

In 2003 increasing production volume the number of employees reduced by 242 persons compared with 2002. Increase in labor efficiency of the Company amounted to 6.3 per cent.

For the period from 2000 Aeroflot capitalization increased 5 times (RTS index increased 3.2 times) from 161.6 million US dollars in January 1, 2002, up to 766.3 million US dollars on January 1, 2004.

In 2003 capitalization increased 2 times (RTS index increased 1.58 times). The Company’s financial results increase and high level of corporate management and transparency of the Company’s activity resulted in growth of investment attractiveness of Aeroflot stocks.

There were considered auditors reports of Aeroflot-Russian Airlines – Vneshaudit Company and the Company Auditing Commission concerning data verification of the annual report, income statement and profit and loss as at December 31, 2003.

The Board of Directors recommended the annual stockholders meeting of the company to appoint Vneshaudit Company as Aeroflot auditor for 2004.

The Board of Directors approved voting papers for the annual stockholders meeting to be conducted on June 5, 2004.

The Board of Directors approved the appointment of Tulsky Stanislav Georgyevich as Deputy Director General on Flying Management – Flying Complex Director and appointed him as a member of the Company Board.

Within the program of the airline company’s routs development, supplying the increasing demand of Russian citizens for air carriages the Board of Directors made a decision on establishing Aeroflot representative offices in Barnaul and Kemerovo.