Aeroflot Group (“the Group”, Moscow Exchange ticker: AFLT) today publishes its condensed consolidated interim financial statements for the six months ended 30 June 2016, in accordance with International Financial Reporting Standards.
1H 2016 Financial Highlights for Aeroflot Group:
- Revenue reached RUB 223,824 million, up 26.8% year-on-year;
- EBITDAR nearly doubled year-on-year to RUB 58,397 million. The EBITDAR margin increased 7.3 percentage points (p.p.) to 26.1%;
- EBITDA more than doubled year-on-year to RUB 30,035 million. The EBITDA margin increased by 5.9 p.p. to 13.4%;
- Operating profit increased four-fold to RUB 23,250 million;
- Net income totalled RUB 2,467 million.
Shamil Kurmashov, PJSC Aeroflot Deputy CEO for Commerce and Finance, commented:
“Aeroflot Group’s robust revenue growth of 26.8% during the first half of 2016 was driven by continued strong operational performance. The number of passengers carried increased by 10.3% year-on-year, thanks to continued strong demand for domestic flights and the launch of new international routes. The passenger load factor increased by 2.9 p.p. year-on-year to 78.6%.
“We maintained tight control of operating costs to offset the ongoing effects of exchange rate fluctuations. In the first half of 2016, total operating expenditures rose at a slower pace than revenue: passenger revenue per available seat-kilometre increased by 18.9%, while costs per available seat-kilometre rose 8.6%. Other contributing factors included measures to increase fuel efficiency, leading to a 1.4% reduction year-on-year in fuel consumption per available seat-kilometre, to 22.8 grams. Increased fuel efficiency and lower unit consumption, combined with a decrease in the average cost of fuel, enabled us to hold fuel costs, the single largest cost line, almost unchanged year-on-year despite a 4.6% increase in Group flight hours.
“As a result, EBITDA more than doubled year-on-year, reaching RUB 30,035 million. The EBITDA margin improved by 5.9 p.p. to 13.4%.
“Continued optimisation across Group companies as well as the revaluation of investments resulted in additional one-off costs, but nevertheless Aeroflot Group delivered net profit of RUB 2,467 million versus a net loss of RUB 3,541 million a year earlier.
“Our focus is on maintaining our current trajectory, and we hope that the positive net income in the reporting period will boost the financial outcome for the full year, allowing us to resume dividend payments to PJSC Aeroflot shareholders.”