Aeroflot Russian Airlines (Moscow) today announced the consolidated IFRS financial results of the Aeroflot Group (Moscow) for the twelve months ending December 31, 2013. Key financial highlights:

• Full year 2013 net income increased 41.9% to RUB 7,334.7 mlm ($203.3 million);

• Full year 2013 revenue increased 15.0% to RUB 290,955.8 mlm ($9.135 billion);

• Full year 2013 traffic revenue increased 16.4% to RUB 257,545.7 mlm ($8.086 billion);

• Fuel costs for 2013 rose 11.2% to RUB 79,127.8 mlm ($2.484 billion);

• Operating costs excluding aircraft fuel, staff costs and depreciation and amortization for full year 2013 increased 9.9% to RUB 133,354.0 mlm ($4.187 billion);

• Full year 2013 basic and diluted earnings per share (EPS) were both RUB 7.6 (US cents 23.9), which is 15.2% higher than basic EPS in 2012 and 16.9% higher than diluted EPS in 2012.

Other 2013 highlights

Aeroflot became the official carrier of the football club Manchester United in 3Q 2013. The long-term sponsorship agreement helps position Aeroflot as a premium global brand.

In October 2013 Aeroflot announced plans to launch Russia’s first national low-cost carrier under the brand Dobrolet. The airline will operate as a 100%-owned subsidiary of Aeroflot. Since the October announcement Aeroflot has worked closely with relevant government authorities to ensure that necessary legislation and regulations are in place to allow for the LCC model to succeed in Russia. Aeroflot views the LCC market as a significant source of future growth and an opportunity to expand its business with negligible cannibalisation. The Group plans to launch Dobrolet this year.

In November 2013 Aeroflot introduced Aurora Airlines, a unified Russian Far East subsidiary based on the legacy assets of Vladivostok Avia and Sakhalin Aviatrassy (SAT). The roll-out of Aurora Airlines presents a strong opportunity to capture market share in the Far East, a region with few transport alternatives. The Group expects that Aurora will fly 2.4 million passengers a year by 2018. The creation of Aurora contributes to the consolidation and restructuring of Aeroflot’s legacy subsidiaries.

In December 2013 JSC Aeroflot was granted permission by the Central Bank of Russia to introduce a depositary receipt program. The following month Aeroflot launched a Level 1 American Depositary Receipt (ADR) program.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Airbus A321-211 VP-BTL (msn 5881) in Manchester United special promotional livery arrives at London (Heathrow).

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