Russian national air carrier Aeroflot posts weak results in January-September

Russian national air carrier Aeroflot posts weak results in January-September
Aeroflot’s financial performance has been weakened by higher fuel prices and a stronger ruble, but its operating figures were positive / Wikimedia Commons
By bne IntelliNews November 1, 2017

Russian national flagship carrier Aeroflot posted a net income drop of 40% year-on-year to RUB25.5bn ($439mn) in January-September, with revenues posting modest growth of 4% y/y to RUB340.7bn and gross income down by 15% y/y to RUB44.7bn.

"The company’s financial performance weakened amid higher fuel prices and a stronger ruble, although the operating figures were positive," Gazprombank commented on November 1.

Gross income in the third quarter alone still went up by 5% y/y to RUB34.8bn due to higher passenger traffic.

VTB Capital estimated that Aeroflot's Ebitda yields were down 6% y/y in January-September and 4% y/y in the third quarter versus the 7% y/y decline seen in January-June.

"Such yields imply significant downside risks to our FY17F Ebitda forecast of RUB73bn and the consensus RUB75bn," the bank warns.

In January-June, Aeroflot's performance was already seen as disappointing and was expected to improve for the July-September period.

Earlier reports also suggested that the company could be forced to take over operations of the collapsed airline VIM-avia, which would mean an extra strain on its finances.

Aeroflot Group Operating Results
      
  August August
Change
  2017 2016
Passengers carried, thousand PAX 5,263.90 4,536 16.00%
- international 2,382.50 1,910 24.70%
- domestic 2,881.40 2,626 9.70%
Revenue Passenger Kilometres, mln 13,698.40 11,791 16.20%
- international 7,829.00 6,399 22.30%
- domestic 5,869.40 5,392 8.90%
Available Seat Kilometres, mln 15,232.10 13,148 15.90%
- international 8,815.50 7,299 20.80%
- domestic 6,416.60 5,849 9.70%
Passenger load factor, % 89.90% 89.70% 0.2 p.p.
- international 88.80% 87.70% 1.1 p.p.
- domestic 91.50% 92.20% (0.7 p.p.)
Cargo and mail carried, tonnes 23,047.00 17,634.60 30.70%
- international 12,467.30 7,598.00 64.10%
- domestic 10,579.70 10,036.60 5.40%
Revenue Cargo Tonne Kilometres, mln 106.3 81.4 30.60%
- international 62.4 38 64.30%
- domestic 43.9 43.4 1.10%
Revenue Tonne Kilometres, mln 1,339.10 1,142.60 17.20%
- international 767 613.9 24.90%
- domestic 572.1 528.7 8.20%
Available Tonne Kilometres, mln 1,817.60 1,587.50 14.50%
- international 1,042.40 880.7 18.40%
- domestic 775.2 706.8 9.70%
Revenue load factor, % 73.70% 72.00% 1.7 p.p.
- international 73.60% 69.70% 3.9 p.p.
- domestic 73.80% 74.80% (1.0 p.p.)
Flight hours for fleet 34,390 30,672 12.10%
Revenue flights 14,298 12,581 13.60%
- international 20,092 18,091 11.10%
- domestic 93,986 85,084 10.50%
Flight hours for fleet 11.70%    
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