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Company News

27 September 2018

Aeroflot announces results of Board of Directors meeting

Moscow, 27 September 2018 — PJSC Aeroflot (Moscow Exchange ticker: AFLT) announces the results of a meeting of the Board of Directors held on 27 September 2018. The meeting was chaired by Mikhail Poluboyarinov. 

The agenda of the meeting included the following:

The results of implementation of Aeroflot Group’s consolidated budget for H1 2018. In the reporting period, the Russian civil aviation market continued to expand. Total passenger traffic, including passenger traffic of foreign carriers, amounted to 60.8 million. Aeroflot Group also continued its operating growth and expansion of its route network and fleet. In H1 2018, the Group’s financial results were significantly affected by an increase in fuel prices. Given the current macroeconomic environment, the Company is implementing a cost optimisation programme, which has already demonstrated positive results; in Q2 2018, the Company’s costs per available seat kilometres declined, exclusive of fuel costs.

PJSC Aeroflot’s Auditor Report on the Group’s IFRS financial statements for 6M of the 2018 financial year states that there is no evidence to suggest that the condensed interim financial statement does not comply with International Financial Reporting Standards (IAS 34 - Interim Financial Reporting).

Implementation of Aeroflot Group’s StrategyThe Board of Directors approved a renewed Group Strategy-2023. According to the strategy the Group must maintain its position among top-20 global airlines by passenger traffic as well as improve the following components of its operations:

- increase target passenger traffic by 2023;

- further develop international transit;

- open new regional bases and hubs;

- significantly expand the fleet to achieve target passenger traffic; by 2026, the Group should operate 200 Russian-built SSJ100 and MC-21 aircraft;

- ensure a high level of digitalisation within the Group (further development of online-sales channels, including mobile apps; increasing operational efficiency through introduction of new digital technologies; use of existing data to generate new revenues and optimise the Group’s operations).

These measures should help Aeroflot Group achieve strong operating and financial results by 2023 and take the Company’s operations to a new level.

Implementation of Aeroflot Group’s Long-Term Development Programme (LDP) in Q2 2018The Board of Directors reviewed the main KPIs of the development programme. The Board also reviewed key events aimed at achieving Aeroflot Group’s strategic goals, such as development of the route network, expansion of the fleet, increase in labour efficiency and reduction in operating costs. The Board concluded that the long-term development programme is being implemented successfully.

Audit of the implementation of Aeroflot Group’s Long-Term Development Programme for 2018. The Board of Directors approved the terms of reference for the audit of the implementation of Aeroflot Group’s Long-Term Development Programme and the achievement of key performance indicators (KPI) for 2018. Audit results may be used to draft further proposals aimed at increasing efficiency and adjusting Aeroflot Group’s Long-Term Development Programme. The audit is performed annually, in accordance with government regulations.

PJSC Aeroflot’s incentive programme. The Board of Directors approved the results of Aeroflot Group’s Long-Term Development Programme/CEO of PJSC Aeroflot for Q2 2018.

The Board also reviewed a number of issues with regards to PJSC Aeroflot's corporate governance and preparation for an Extraordinary General Meeting of Shareholders of PJSC Aeroflot, scheduled for 23 October 2018. 

About Aeroflot

Aeroflot is Russia’s flagship carrier and a proud member of the SkyTeam global airline alliance. Aeroflot serves 146 destinations in 52 countries.

Aeroflot’s 248-strong fleet is the youngest of any airline worldwide that operates more than 100 aircraft. In 2017, Aeroflot carried 32.8 million passengers (50.1 million passengers as Aeroflot Group including subsidiaries).

Aeroflot holds 4-Star Airline status from Skytrax and was named Best Airline in Eastern Europe for the seventh time at the 2018 Skytrax World Airline Awards. Aeroflot has also been awarded a five-star global airline rating by US aviation association APEX.

Aeroflot is the world’s strongest airline brand according to leading brand strategy consultancy Brand Finance.

Find out more at http://www.aeroflot.com/