Aeroflot Group has reported an 8% increase in revenue to RUB 111,942 million for the three months ended 31 March 2018. EBITDAR reached RUB 10,767 million. The airline group’s net loss totalled RUB 11,543 million during the reporting period.
Shamil Kurmashov, PJSC Aeroflot Deputy CEO for Commerce and Finance, commented:
“This is the first time that Aeroflot Group has published its consolidated IFRS financial results for the first quarter of the year. This has been made possible by the Company’s focus on improving its internal accounting systems with the goal of accelerating the closing of the accounting period and submitting its financial reporting.”
He added that the first three months are “traditionally weak” for the Russian aviation market, with demand down that was demonstrated in the number of passengers carried in Q1 2018 at 9% lower than in Q4 2017.
In Q1 2018, Aeroflot passenger traffic was 7% lower than Q4 2017 and 29% lower than Q3 2017. Lower passenger traffic means a lower passenger load factor, fewer average daily flight hours per aircraft, lower yields and hence a higher share of fixed costs in the overall cost structure.
In Q1 2018, Aeroflot Group carried 11.0 million passengers, a 6.6% year-on-year increase. Yields grew by 3.6%, supported by currency effects, and leading to accelerated revenue growth for the quarter relative to annual rates. Revenue amounted to RUB 111.9 billion, up 8.5%. An increase in leasing expenses due to significant fleet expansion, as well as our initiatives to improve working conditions and increase salaries for cabin crew, led to a decrease in the overall financial result compared to the same period last year. The net loss amounted to RUB 11.5 billion; we plan to compensate for this during the coming quarters.