Tag Archives: Aeroflot Russian Airlines

Aeroflot announces its fourth quarter and FY 2019 financial results

Aeroflot Russian Airlines has announced its financial results for the fourth quarter (Q4) and full year (FY) ending December 31, 2019 in accordance with Russian Accounting Standards (RAS). RAS results are presented on a non-consolidated basis.

Key results in accordance with RAS, RUB million

	Q4 2018	Q4 2019	Change	FY 2018	FY 2019	Change
Revenue	123,356	129,604	5.1%	504,697	551,767	9.3%
Cost of sales	136,738	130,605	(4.5)%	499,683	542,976	8.7%
Gross income/(loss)	(13,382)	(1,000)	–	5,013	8,791	75.4%
Net income/(loss)	(12,830)	(1,960)	–	2,796	5,287	89.1%

Comments on Q4 and FY 2019 RAS financial results

In 2019, the Company’s growth continued to be accompanied by strict cost control. Market factors including changes in FX rates significantly affected financial results year-on-year.
Revenue for FY 2019 was RUB 551,767, up 9.3% year-on-year. Revenue was affected by increased operational volumes and FX fluctuations (in 2019 the ruble appreciated against the euro by 2.0% year-on-year, and depreciated against US dollar by 3.2%).
- In 2019, the number of flights operated by Aeroflot airline increased by 6.8% leading to a 3.8% increase in passenger turnover, which amounted to 101.6 billion RPKs. Passenger traffic increased by 4.1% to 37.2 million. The main growth factor was expansion of the route network and an increase in flight frequencies.
- Active capacity management resulted in positive trend in RASK (+2.5% year-on-year in FY 2019), which increased notwithstanding the high base effect of 2018, when there was stronger demand backed by world football championship in Russia. FX rates held back growth of RASK in FY 2019.
Cost of sales in FY 2019 was RUB 542,976 million, up 8.7% year-on-year. In addition to factors connected to the growth of the Company, cost of sales continued to be affected by macroeconomic and industry factors.
- In 2019, cost increases were driven mainly by rising airport charges and costs for ground handling services. Total expenses for these services rose by RUB 12,786 million (up 21.0% year-on-year) due to an increase in traffic and tariffs charged by Russian airports.
- Total fuel expenses rose by RUB 1,910 million (up 1.5% year-on-year), following a 7.0% increase in Aeroflot airline’s flight hours. Throughout 2019, the price of kerosene significantly exceeded its average historical levels.
- < >aintenance costs increased due to higher number of maintenance procedures including regular repairs and heavy maintenance in accordance with the existing schedules, upgrades related to improvement in product quality as well as increase in volume of operations and changes in the US dollar rate.Throughout the year management took active measures to improve the Company’s and Group’s financial results and implemented strict cost control. Optimisation measures helped to increase gross income of Aeroflot to RUB 8,791 million (+75.4% year-on-year) as well as to hold the increase in selling costs to just 9.0%, and to reduce administrative costs by 5.3%.
- Q4 2019 significantly contributed to FY 2019 results:
  - Revenue for Q4 2019 was RUB , up 5.1% year-on-year. Revenue was affected by operational growth and FX dynamics, with the ruble appreciating against the euro by 7.1% year-on-year during the quarter. The stronger ruble held back RASK growth, which came in at 5.9% year-on-year.
  - Cost of sales in Q4 2019 decreased by 4.5%, due to ongoing optimisation measures coupled with the strengthening of the ruble against US dollar.
  - Seasonally low winter 2018-2019 period was complemented by jet fuel price and FX factors which resulted in net loss of RUB 16,850 million in Q1 2019. Thanks to measures taken by the management throughout the year the Company compensated these results not only with a strong summer season, but with a significantly better fourth quarter: in Q4 2019, the airline reduced its net loss by 6.5 times from RUB 12,830 million in Q4 2018 to RUB 1,960 million.
- Net income of Aeroflot for FY 2019 increased by 89.1% and amounted to RUB 5,287 million.

International route map:

Top Copyright Photo: Aeroflot Russian Airlines Airbus A350-941 F-WZGT (VQ-BFZ) (msn 383) TLS (Eurospot). Image: 948950.

Aeroflot aircraft slide show:

Aeroflot aircraft photo gallery:

Aeroflot begins phased transition of international flights to Sheremetyevo’s new Terminal C

Aeroflot has begun phasing in operation of international flights from the new Terminal C at Moscow’s Sheremetyevo International Airport. The first departures and arrivals from the terminal will be to/from Helsinki, Dresden and Bucharest.

By mid-June Aeroflot plans to have completed the bulk of the migration to Terminal C. From October, Aeroflot expects to operate 268 international flights from the new terminal. A joint Aeroflot-Sheremetyevo working group was formed to manage the transition and establish a timeline and testing program.

Terminal C, which occupies more than 127,300 square meters at Sheremetyevo’s Northern Terminal Complex, is integrated with Terminal B, to which Aeroflot previously shifted domestic flight operations. Terminal C can accommodate 20 million passengers a year. The rollout of Terminal C, combined with the commissioning of a third runway at Sheremetyevo in September 2019, establish a fundamentally new basis for Aeroflot Group operations.

All photos by the airline.

Aeroflot updates its livery with the first Airbus A350-900 out of the paint shop

Aeroflot Russian Airlines has updated its livery with the first Airbus A350-900 fresh out of the paint shop at Airbus.

The new look adds larger titles and removes the blue underside with the red trim line. The fuselage has also gone from silver to white.

The pictured A350-941 carries the temporary registration of F-WZGT and will become VQ-BFY (msn 383) on delivery. It carries the name of “P. Tchaikovsky”.

Aeroflot aircraft slide show:

Aeroflot aircraft photo gallery:

Poll:

Aeroflot introduces hand-luggage-only fares on selected long-haul routes

Aeroflot Russian Airlines has made this announcement:

From December 24, 2019 Aeroflot Group airlines will introduce hand-luggage-only fares on selected long-haul flights departing from Moscow, and on routes from St. Petersburg via Moscow, including to destinations in the US, India, Mongolia and Thailand, as well as the Maldives, Cuba, Sri Lanka, Indonesia (Denpasar in Bali) and Vietnam (Ho Chi Minh City).

This year, Aeroflot rolled out new hand-luggage-only fares – fares that are not inclusive of checked baggage – on some medium-haul routes, including those operated by its subsidiaries Rossiya Airlines and Aurora.

The new option has proven popular with customers. Aeroflot’s wide selection of fares better meets the needs of passengers and significantly increases the accessibility of air travel.

Economy class passengers can now choose between fares inclusive of a checked bag (up to 23 kg and the sum of three dimensions not exceeding 158 cm) or a carry on-only fare, so that they do not pay for a service they do not need. Passengers who select the carry on-only fare can bring hand luggage on board weighing 10 kg per seat for Economy class. The new offer will be particularly appreciated by passengers traveling with families, who usually check fewer than one bag per family member.

A discounted price for checked baggage applies if passengers pay in advance when booking or after purchasing the ticket on the company’s website, via the mobile app, in sales offices or through authorized agents. A discount for checked baggage also applies on the departure day, if the service is purchased through the website or the Aeroflot mobile app.

Aeroflot’s short-haul routes:

Aeroflot’s long-haul routes:

Aeroflot aircraft photo gallery:

Aeroflot expands Asia route offering with four flights weekly to Osaka

Aeroflot has launched ticket sales for scheduled direct flights from Moscow to Osaka, Japan’s third city, beginning on June 1, 2020.

The addition of a second destination in Japan strengthens Aeroflot’s offering on transit routes to Asia from Europe and North America, which forms a key part of the airline’s strategy. The Russian flag carrier offers convenient and fast transfers through its hub at Moscow’s Sheremetyevo airport, with total travel times up to three hours shorter than those of competitors in Europe and Asia.

Flights will operate on the following schedule (all times local):

Moscow-Osaka

Flight SU0268 departs Sheremetyevo at 19:05 on Mondays, Tuesdays, Thursdays and Saturdays, arriving at Kansai at 11:05 the following day.

Osaka-Moscow

Flight SU0269 departs Kansai at 12:45 on Tuesdays, Wednesdays, Fridays and Sundays, arriving at Sheremetyevo at 16:45 the same day.

Osaka is Aeroflot’s second destination in Japan. The Russian flag carrier has operated daily scheduled flights to Tokyo since 1967.

Aeroflot is Russia’s flagship carrier and a proud member of the SkyTeam global airline alliance. Aeroflot serves 149 destinations in 53 countries.

Aeroflot aircraft photo gallery:

Aeroflot cancels its order for 22 Boeing 787 Dreamliners

Aeroflot Russian Airlines has cancelled its order 22 Boeing 787 Dreamliners.

Aeroflot to bring the Airbus A350-900 to Miami

Aeroflot Russian Airlines is planning to introduce the new Airbus A350-900 on the Moscow (Sheremetyevo) – Miami route on June 2, 2020.

Image: Aeroflot.

Aeroflot expands route network for summer 2019

Aeroflot Russian Airlines has made this announcement:

This summer Aeroflot has launched new flights to more destinations in Russia and abroad.

From June 1, Aeroflot is operating five weekly flights from Moscow to Marseille, France’s second largest city and a renowned cultural and historical centre. Another destination in the Mediterranean that was added to Aeroflot’s route network is Palma de Mallorca – Aeroflot is now operating four weekly flights to the largest city of the Balearic Islands.

In addition, to support the further development of services in Asia, Aeroflot increased flight frequencies between Moscow and Seoul – from June 1, Aeroflot doubled the number of flights to the capital of South Korea. Aeroflot’s offering in the Asian market is further supported by a codesharing agreement that has been signed with Vietnam Airlines. The codesharing on both domestic and international routes began last week and aims to offer customers enhanced connectivity and seamless connections between destinations in Russia and Vietnam.

Boosting Russian citizens’ mobility remains one of Aeroflot’s key priorities. In accordance with the plan to increase the number of interregional flights that bypass Moscow, this summer Aeroflot has launched new direct flights between major cities in the south of Russia – Volgograd and Sochi, Krasnodar and Simferopol. Flights between these cities will operate on a daily basis.

Aeroflot is continuously expanding its route network and increasing flight frequencies to popular destinations. This summer Aeroflot will fly to 159 destinations in 54 countries, including 58 destinations in Russia.

Trivia by Aeroflot: Aero Gangplank, the original jet bridge, was first used at Chicago airport in 1958. Just like gangways allow people to board ships, jet bridges connect planes to airport terminals enabling passengers to comfortably embark/disembark.

Top Copyright Photo (all other photos by Aeroflot): Aeroflot Russian Airlines Airbus A330-343 VQ-BCU (msn 1065) LHR (SPA). Image: 946727.

Aeroflot aircraft slide show:

Aeroflot launches flights to Palma de Mallorca

Aeroflot launched flights from Moscow to Palma de Mallorca on June 1. Four weekly flights on Airbus A320 operate on the following schedule:

Route	Flight	Departure time	Arrival time	Days
Moscow – Palma de Mallorca	SU2518	12:15	16:00	Tue Fri Sun
Moscow – Palma de Mallorca	SU2518	12:05	15:55	Sat
Palma de Mallorca – Moscow	SU2519	17:00	22:50	Tue Fri Sun
Palma de Mallorca – Moscow	SU2519	16:45	22:35	Sat

All times local

Palma de Mallorca is the largest city of the Balearic Islands, located in the Mediterranean Sea. The city is famous for its historical heritage and mild Mediterranean climate that attracts tourists all year round. On top of Palma de Mallorca this Summer Aeroflot will fly to six other destinations in Spain: Alicante, Barcelona, Madrid, Malaga, Tenerife and Valencia.

Aeroflot is continuously expanding its route network and increasing flight frequencies to popular destinations. This Summer Aeroflot will fly to 159 destinations in 54 countries.

”Palma de Mallorca”