Aeroflot Group is claiming a net profit of Rb42.3 billion ($462 million) over the first half of the year, under international accounting standards.
It attributes the performance to higher traffic levels and load factor, combined with cost control.
Adjusted for exchange-rate valuations and the effect of insurance settlement in the first half, the net profit would have been Rb27 billion.
The company made a first-half loss of Rb102 billion – or Rb20 billion after adjustments – last year.
“Aeroflot has continued to improve its financial results over the past four quarters,” says finance chief Andrei Chikhanchin, adding that the company achieved the interim net profit “for the first time in a long time”.
He says the operating environment “remains challenging”, with the company having to cope with international flight restrictions – requiring “non-standard solutions” – while fuel, airport fees and maintenance costs are increasing.
Maintenance expenditure more than doubled to nearly Rb19 billion, albeit from a relatively low base, as a result of “significant increase” in the cost of components, says the group.
Chikhanchin says achieving profitability is important given the conditions under which the company is operating, and the need to ensure funding for its digital transformation programme and other capital expenditure.
Aeroflot Group carried 25.4 million passengers in the first half, up 21%, of which 19.4 million were on domestic routes, although international numbers rose by 46%.
As a result the group revenue in the six-month period increased by almost 50% to Rb377 billion.
