Aeroflot Group today publishes its condensed consolidated interim financial statements for the three months ended 31 March 2018, in accordance with International Financial Reporting Standards.

Aeroflot Group financial highlights for Q1 2018
    •    Revenue increased to RUB 111,942 million, up 8.5% year-on-year;
    •    EBITDAR reached RUB 10,767 million;
    •    The net loss totalled RUB 11,543 million.
Shamil Kurmashov, PJSC Aeroflot Deputy CEO for Commerce and Finance, commented:
“This is the first time that Aeroflot Group has published its consolidated IFRS financial results for the first quarter of the year. This has been made possible by the Company’s focus on improving its internal accounting systems with the goal of accelerating the closing of the accounting period and submitting its financial reporting. Publishing Q1 financial results will increase transparency for stakeholders, above all shareholders and investors, and will help them deepen their understanding of the Company and its seasonal trends.
“The first three months are traditionally weak for the Russian aviation market. This is due to a number of factors, primarily seasonality of demand, as fewer passengers fly during this period. Thus, despite continued growth of the air transportation market, the number of passengers carried in Q1 2018 was 9% lower than in Q4 2017, which can also be considered as a low season for the industry, and 38% lower than the high season of Q3 2017. The seasonal demand effect can also be clearly seen in Aeroflot Group’s results: in Q1 2018 passenger traffic was 7% lower than Q4 2017 and 29% lower than Q3 2017. Lower passenger traffic means a lower passenger load factor, fewer average daily flight hours per aircraft, lower yields and hence a higher share of fixed costs in the overall cost structure. These results should, therefore, be read in the context of seasonal trends.
“In Q1 2018, Aeroflot Group carried 11.0 million passengers, a 6.6% year-on-year increase. Yields grew by 3.6%, supported by currency effects, and leading to accelerated revenue growth for the quarter relative to annual rates. Revenue amounted to RUB 111.9 billion, up 8.5%. An increase in leasing expenses due to significant fleet expansion, as well as our initiatives to improve working conditions and increase salaries for cabin crew, led to a decrease in the overall financial result compared to the same period last year. The net loss amounted to RUB 11.5 billion; we plan to compensate for this during the coming quarters.
“The major part of the year is still ahead of us, including the high season, when Russia will host the football World Cup. Aeroflot and other Group airlines fly to all 11 World Cup host cities and are ready to provide best service to our passengers. Given the upcoming World Cup and continued market growth, we are expecting high demand for both international and domestic flights. The Group will continue to actively manage revenue and control costs to ensure strong financial results for the year.”