Aeroflot Group published its consolidated financial statements for the three months and full year ending 31 December 2018, in accordance with International Financial Reporting Standards.
According to the company’s web page, in 2018, Aeroflot Group’s revenue increased by 14.8% year-on-year to RUR 611,570 mio.
Revenue from scheduled passenger flights increased by 16.1% year-on-year to RUR 496,454 mio, driven by an increase in passenger traffic. Revenue from charter flights increased by 22.6% year-on-year to RUB 37,838 mio, due among other factors to an increase in unit yields on charter flights and the expansion of Rossiya’s charter programme. Cargo revenue rose by 14.4% year-on-year, to RUR 18,900 mio as cargo and mail volumes grew by 11.2%.
Finance costs decreased by 3.9% year-on-year to RUR 7,904 mio, primarily due to reduction in the cost of debt servicing on the back of significant debt reduction in 2017.
Andrey Chikhanchin, PJSC Aeroflot Deputy CEO for Commerce and Finance, said: “The most significant factor affecting the Group’s financial results for 2018 was the unprecedentedly fast increase in the average cost of jet fuel, as well as depreciation of the ruble. Across the Group, jet fuel prices increased by 36%, which at the Group’s consumption volumes led to additional cost of RUB 48 billion. The depreciation of the ruble created additional pressure on the financial results, given that almost half of the Company’s costs are FX-denominated”.
Aeroflot Group’s net profit for 2018 amounted to RUR 5,713 million, down 75.2% year-on-year.
“However, despite the record increase in the price of jet fuel and the depreciation of the ruble, thanks to its extensive optimisation programme the Group was able to record a profit for the year of RUR 5,713 mio,” Andrey Chikhanchin noted.