Tag Archives: 5614

Aeroflot reports net income of $545.2 million for the first 9 months of 2013

Aeroflot Russian Airlines (Aeroflot Group) (Moscow) issued its financial results for the first nine months of 2013:

Aeroflot has announced the consolidated IFRS financial results of Aeroflot Group for the nine months ending 30 September 2013.

Key financial highlights:

  • Net income for the nine-month period of $545.2 million, an increase of 84.1% versus 9M 2012
  • Revenue for the nine-month period was up 16.8% year-on-year to $7,032.7 million
  • Traffic revenue for the nine-month period grew 17.8% year-on-year to $6,259.0 million
  • Fuel costs for the nine-month period rose 11.4% year-on-year to $1,877.5 million (9M 2012: $1,685.0 million)
  • Non-fuel operating costs for the nine-month period increased 10.1% year-on-year to $4,305.4 million
  • 9M 2013 basic and diluted earnings per share of $0.500 and 0.499, up 63.4% and 64.7%, respectively, from 9M 2012

Operational highlights:

  • Aeroflot Group passenger traffic grew 14.7% year-on-year in 9M 2013 to 24.0 million people, while revenue passenger kilometres (RPK) rose 16.2% to 65,363.0 million
  • Aeroflot standalone capacity rose 18.3% year-on-year in the period, while Aeroflot Group capacity was up 15.8% compared to 9M 2012

Aeroflot suspended operations of its cargo plane fleet in 2013, switching to belly cargo operations. This was the main factor driving the 8.6% decline in tons of cargo carried in 9M 2013 vs. 9M 2012

“Aeroflot Group’s strong financial results were driven by three factors.  First, we offer clients a premium product at an attractive price.  Second, we are managing costs effectively.  Third, we are optimising the operations of our subsidiaries that are being integrated into the Group,” said Vitaly Saveliev, Aeroflot’s chief executive officer.  “We are on track this year to serve the most customers in Russia’s modern history.  At the same time we maintain our relentless focus on safety.  This is bolstered by our aircraft fleet, which is the best in Russia and one of the youngest in Europe.”

USD mln, unless otherwise stated

3Q 2013

3Q 2012


9M 2013

9M 2012
















Margin (%)



9.1 p.p.



4.6 p.p.








Margin (%)



10.0 p.p.



5.2 p.p.

Operating Income







Margin (%)



9.9 p.p.



5.0 p.p.

Net Income







Margin (%)



6.7 p.p.



2.9 p.p.

(1) EBITDAR = EBITDA + operating lease expenses; (2) EBITDA = operating income + depreciation & amortization + customs duties

Operational performance:

Aeroflot Group reported strong traffic revenue in the first nine months of 2013 of $6,259.0 million, representing a 17.8% increase over the same period in 2012. Group passenger traffic rose 14.7% to 24.0 million people, while revenue passenger kilometres (RPK) was up 16.2% to 65,363.0 million. Aeroflot Group’s seat load factor was relatively flat at 79.1%.

Financial performance:

Aeroflot Group revenue in 9M 2013 increased by 16.8% year-on-year to $7,032.7 million, primarily due to strong growth of 19.3% in the passenger segment, which was balanced by a decline in cargo revenue of 10.9% after Aeroflot suspended its cargo fleet operations.  Other revenue increased by 9.0% year-on-year to $773.7 million.

Fuel costs for the nine-month period increased 11.4% year-on-year to $1,877.5 million, driven by the significant growth in passenger traffic and the addition of new routes.

Non-fuel operating costs for the nine months of 2013 also increased in line with the growth in the Group’s operations, up 10.1% to $4,305.4 million, primarily due to year-on-year increases in aircraft and traffic servicing costs (up 17.9% to $1,252.7 million).  Staff costs increased 11.7% year-on-year to $1,003.9 million.

Aeroflot Group operating income for 9M 2013 nearly doubled year-on-year to $849.8 million, representing a margin of 12.1%, compared to an operating margin of 7.1% for 9M 2012.

The Group’s net income in 9M 2013 was $545.2 million, up 84.1% from the first nine months of 2012.

Other 2013 highlights:

In the beginning of 3Q, Aeroflot was unveiled as the Official Carrier of Manchester United Football Club. The multi-year sponsorship positions Aeroflot as a premium international brand by aligning it with a global symbol of excellence.

In October 2013 Aeroflot presented plans to launch Russia’s first national low-cost carrier (LCC), a new 100% subsidiary to be known as “Dobrolet”. Ticket prices are expected to be on average 40% lower than mainstream carriers, thus attracting a new customer segment to air travel. Aeroflot views the LCC market as a sizeable growth opportunity and a chance to diversify its business without the risk of cannibalization. Dobrolet is targeting the start of operations in 2014.

In November 2013 Aeroflot announced the roll-out of Aurora Airlines, a new subsidiary focused on the Russian Far East that has been created from Group subsidiaries Vladivostok Avia and Sakhalin Airlines. The launch of Aurora represents a unique opportunity to achieve significant market share in the Far East where there are few alternatives to air travel. Aurora has an annual traffic target of 2.4 million passengers by 2018.  The creation of Aurora is part of the process of consolidation and restructuring of subsidiary assets.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Airbus A320-214 VP-BNT (msn 5614) in the retro 1956 livery lands at Stockholm (Arlanda).

Aeroflot: AG Slide Show

Aeroflot puts its Airbus A320 1956 retrojet into revenue service

Aeroflot A320-200 VP-BNT (56)(Nose) SVO (Aeroflot)(LRW)

Aeroflot Russian Airlines (Moscow) has put its newly-delivered Airbus A320-214 VP-BNT (msn 5614) into revenue service. The flag carrier issued this statement:

The only air plane in a retro livery in Russia has joined the Aeroflot fleet celebrating the 90th Anniversary of the national flag carrier.

In late 2012 Aeroflot organized a voting in social networks to choose the best livery for its retro-jet. More than 2500 people participated in the voting process, and the livery of one of the first world’s jet airliners — Tupolev Tu-104 (appeared in 1956) was declared a winner. In the opinion of the majority of voters was this livery carried the spirit of the “romantic” 1950s, the time when the air transport industry in the country was rapidly growing and significant achievements were made in the national air construction.

The final draft of the livery to be painted on the newest Airbus A320 was designed in accordance with the voters’ comments, taking into account safety standards and recommendations from Airbus and Akzo Nobel specialists considering the paint spraying and its technical and performance parameters.

The retrojet is named “DOBROLET” after the Open Joint Stock Company found on March 17, 1923, which was the predecessor of Aeroflot. The newcomer to the Aeroflot fleet is to demonstrate the vast historical inheritance of the air company and to attract interest of the public to the long and rich history of Aeroflot.

Gaining from the synergy of prominent heritage and modern innovative development, the Russian national flag carrier, one of the oldest air companies in the world, operates one of the youngest air fleets in Europe. Currently there are 137 aircraft in Aeroflot including 87 Airbus A319/320/321 family planes.

All Airbus aircraft are received by Aeroflot directly from Airbus manufacturing plants. The airplanes are designed in two class composition and can carry 116 (A319), 140 and 158 (A320) and 170 (A321) passengers. These aircraft provide services on European and Russian domestic destinations. Airbus A320 family airplanes satisfy the highest reliability, safety and comfort standards and are one of the best for mid-range flights.

Top Copyright Photo: Aeroflot. Airbus A320-214 VP-BNT (msn 5614) is seen at the Moscow (Sheremetyevo) base. VP-BNT was handed over on May 29.

Aeroflot: AG Slide Show

Hot New Photos: AG Hot New Photos

Bottom Copyright Photo: Eurospot/AirlinersGallery.com. The airframe was tested at Toulouse as F-WWIF.


Aeroflot gets ready to introduce its 1956 retrojet to celebrate its 90th Anniversary

Aeroflot Russian Airlines (Moscow) as we first reported on November 19, 2012, is getting ready to introduce this 1956 retrojet.

Aeroflot issued this statement back in November:

On November 12, 2012 the open Internet voting for Aeroflot new aircraft retro livery was finished. Celebrating the company’s 90th Anniversary, an airplane in a heritage livery will join the Aeroflot fleet in 2013.

In the middle of this summer Aeroflot addressed to its passengers through social networks, asking about their vision of expected Aeroflot jubilee events. As a result, more than 45 per cent of our flyers wished to see one of the national carrier’s aircraft in a retro livery.

So, the voting in Aeroflot official Facebook group had begun. There were four candidates representing four different types of painting historically worn by Aeroflot airplanes. More than 2500 passengers participated in the voting process, and the livery of one of the first world’s jet airliners – Tupolev Tu-104 (appeared in 1956) was declared a winner.

During the voting Aeroflot received from its passengers a lot of useful recommendations and remarks, which will allow updating and improving of the color scheme of the livery.

One of the brand new A320 aircraft to make part of Aeroflot fleet in the first middle of 2013 will wear a retro livery. The painting itself will be made at the Airbus manufacturing plant.

Copyright Photo: Eurospot. The pictured brand-new Airbus A320-214 has been painted in a modified 1956 almost-retro livery. Still carrying the test registration of F-WWIF, the airframe will be delivered as VP-BNT (msn 5614). The airliner is pictured at Toulouse today.

Hot New Photos: AG Hot New Photos

Aeroflot: AG Slide Show