Aeroflot Group has significantly reduced losses in the second quarter and during the first six months, it reported on August 2. The Russian airline group posted a RUB 1.431 billion Q2 loss, which compares to a RUB 26.156 billion loss in the same period last year. Aeroflot Group significantly reduces losses.
Revenues were up 4.4 percent to RUB 91.025 billion. This even exceeds the 2019 result by 17.9 percent and confirms the strong recovery of domestic traffic within Russia, despite worrying about Covid-infections across the country. Aeroflot and its subsidiaries Pobeda and Rossiya benefitted from this.
The HY1 results show a net loss of RUB 26.333 billion compared to RUB 42.494 billion for the first six months of 2020. Revenues improved by 23.2 percent to RUB 149.898 billion. Revenues from passenger services were up by 29.7 percent.
Passenger numbers were up 47.7 percent to 18.6 million, of which 16.1 domestic. This confirms the trend seen in Q1.. International traffic remains to be heavily restricted and reported 45.4 percent fewer passenger to 2.5 million. Cargo saw an increase of 22.4 percent in tons carried, to 126.5 million tons. By airline, Aeroflot carried 8.4 million passengers (+7.1 percent), Pobeda 6.4 million (+120 percent), Rossiya 3.8 million (+100 percent).
Operating expenses were almost identical over the six-month period at RUB 177.6 billion but increased by 75.3 percent in Q2 to RUB 95.2 billion as Aeroflot ramped up its services. The Group says it has been successful in reducing ground handling, and catering costs. Staff costs were down by 24 percent, but higher fuel costs had a negative impact.
Aeroflot ended June with RUB 87.2 billion in liquidity, up to RUB 28.2 billion compared to March, thanks in part to a bond issue. The Group has RUB 98.6 billion in net debt. By the end of June, Aeroflot operated 209 aircraft (32 fewer compared to March), Pobeda 43 (plus nine), and Rossiya 92 (plus 25). The additional aircraft for Pobeda were two Boeing 737-800s and five Sukhoi Superjet 100s transferred from the parent airline. The Group remains focused on its long-term strategic plan towards 2028.
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Active as a journalist since 1987, with a background in newspapers, magazines, and a regional news station, Richard has been covering commercial aviation on a freelance basis since late 2016.
Richard is contributing to AirInsight since December 2018. He also writes for Airliner World, Aviation News, Piloot & Vliegtuig, and Luchtvaartnieuws Magazine. Twitter: @rschuur_aero.
