“Aeroflot” has finished the first half of the year profit for the first time since 2013

The plane of airline “Aeroflot”

Photo: Reuters/Pixstream

The Aeroflot group for the first six months of the year earned 2.5 billion rubles, making a profit for the first half of 2013. The company promises dividends to shareholders for the year, if we can keep the profitability

The Aeroflot group, consisting of airline “Aeroflot”, “Russia”, “Victory” and “Aurora” on Monday, August 29, revealed the financial statements for the first half of 2016.

The group’s net profit for the first six months of 2016 amounted to RUB 2.5 billion In the last time “Aeroflot” has received the semi-annual IFRS profit in 2013. The group’s profit for the first 6 months of 2013 amounted to RUB 45 million In the first half of 2014 “Aeroflot” has received a loss in the amount of RUB 1.9 billion in the first half of 2015 is 3.5 billion rubles.

To generate a profit in 2015, “Aeroflot” has prevented the loss from hedging high fuel prices. In the first half of 2016, the loss of “Aeroflot” from hedging remained at the same level (8.7 billion RUB compared to RUB 8.8 billion for the first half of 2015). While operating results have improved.

The group’s revenue increased by 26.8% compared to the same period in 2015 and amounted to 223,8 billion. Income increased after the passenger traffic, which increased by 10.3% (to 19.7 million people), and due to the fall of the ruble — this increased international revenue, nominated in foreign currency.

Operating expenses grew slower than revenue, 17.6%, to 200,6 billion. this is Partly due to savings on fuel should be the message carrier: despite the growth of traffic volume and flight hours, the cost of jet fuel remained at the same level (44,8 billion roubles) due to the decrease in ruble prices for aviation fuel and measures to improve fuel efficiency.

Most strongly increased the costs of operating lease aircraft, which amounted to 28.4 billion rubles, an increase of 42.2% compared to the same period last year. The reason is the depreciation of the ruble, says Aeroflot: this kind of expenses are almost entirely denominated in foreign currency. In addition, the aircraft fleet of the airline increased by 16 aircraft, or 8.1%, compared to June 30, 2015.

Total debt of “Aeroflot” fell by 22.6%, to 180,9 bln rubles, EBITDA increased more than twice compared to the same period last year to 30 billion rubles While EBITDA increased by 5.9 percentage points to 13.4%.

“We are making every effort to preserve current trends and hope that the positive result on net profit for the reporting period will improve the result for the financial year as a whole and will allow us to resume the payment of dividends to the shareholders of “Aeroflot”, — are reported words of the Deputy General Director of “Aeroflot” Shamil Kurmashov.

Market results “Aeroflot” is not appreciated. At 13:00 on Monday the price per share of the carrier on the Moscow exchange fell to 92,53 RUB, or 1.56%, to the opening of trading. Capitalisation “Aeroflot” amounted to 102.3 billion rubles.

By the end of 2015, “Aeroflot” has recorded a loss of 18.5 billion rubles, the company and 6.5 billion rubles under IFRS). The General Director of airline Vitaly Savelyev explained losses cost of 17 billion rubles, which the company incurred for the transportation of passengers of bankrupt “Transaero”. Due to poor financial results, the carrier refused to pay dividends for 2015.

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