Transaero Airlines financial results under Russian Accounting Standards for the first three quarters of 2014 saw revenue from air operations increase by 6% in comparison with the same period of 2013 and reach 84.8 billion RUB (US$2.4 billion).
The airline’s cost reduction programme adopted in 2012 has delivered savings in the first three quarters of 2014, with selling costs reduced by 8% and administrative costs reduced by 15%.
Despite the negative external factors including the requirement to bypass Ukraine when operating transit flights, Transaero’s profit from sales increased by 63% and reached 6.7 billion RUB (US$188.8million), the airline stated.
The airline’s net profit reached 130 million RUB (US$3.7 million). The airline has reached this result despite the significant growth of foreign exchange and forward operations losses, which amounted to 1 billion 658 million RUB (US$46.8 million) in the first nine months of 2014; as a comparison foreign exchange and forward operations losses in the first nine months of 2013 were 266 million RUB (US$8.4 million).
The balance-sheet total reached 123 billion RUB (US$3.1 billion).
The long term/short term borrowing ratio has been improved. By the end of the first nine months this ratio was 48/52%, while in the beginning of 2014 it reached 40/60%.
The Transaero subsidiary company Transaero Finance has reported a net profit of 954 million RUB (US$26.9 million). In 2013 Transaero Finance had a loss of 273 million RUB (US$8.6 million).
Thus, the overall profit of JSC Transaero Airlines and Transaero Finance LTD reached 1 billion 84 million RUB (US$30.6 million) as compared to 463 million RUB (US$14.6 million) a year ago.
From January to September 2014 Transaero Airlines’ key operational indicators saw passenger traffic grow by 6.4% over the same period of 2013 to 10.5 million passengers and passenger turnover on domestic routes grow by 35% demonstrating the highest growth among the top five largest Russian airlines.
Passenger load factor at 85% was also the highest among the top five carriers in Russia.
As of the end of September 2014, capitalization of Transaero Airlines calculated in the national currency grew by 40.3% and exceeded 32 billion RUB (US$812.4 million) in comparison with the results of September 2013 when the capitalization of the company was 22.85 billion RUB (US$706.3 million).