Moscow, 5 May 2015. — JSC Aeroflot (Moscow Exchange ticker: AFLT) today announces its financial results for the three months ended 31 March 2015 in accordance with Russian Accounting Standards («RAS»).
RAS results are presented on an unconsolidated basis for JSC Aeroflot only.
1Q 2015 Highlights
• Revenue of RUB 64,655 million, an increase of 40.2% year-on-year
• Cost of sales of RUB 55,215 million, up 29.6% year-on-year
• SG&A of RUB 14,011 million, up 119.6% year on year
• Net loss of RUB 4,230 million
Shamil Kurmashov, JSC Aeroflot’s Deputy CEO for Finance and Revenue Management, said:
"The challenging macroeconomic environment remained the primary factor putting pressure on JSC Aeroflot’s financial results in the first quarter of 2015. An overall decrease in consumer demand and a weaker rouble negatively affected profitability and offset the positive effect of strong operational results (notably a 9.8% year-on-year increase in passenger traffic).
"Additional factors that had an impact on the financial results were a consistent pricing policy focused on supporting traffic at a time when the country’s currency has undergone devaluation, and the fact that the first quarter is typically a slow season for passenger air travel.
"The results were also affected by factors including hedging operations and the social orientation of Aeroflot’s pricing policy.
"Although the external environment remains volatile, we remain confident in the enormous long-term potential of the Russian aviation market, and firmly believe that the Company’s strategy is robust enough to manage the challenges posed by the current economic situation".
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 the youngest fleet in the world among major airlines, numbering 157 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 fifth time in 2013. Aeroflot has successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008, ISO 14001:2004 compliant. In 2014 Aeroflot was named by SKYTRAX as the Best Airline in Eastern Europe for the third time. Find more at www.aeroflot.com.