Transaero Airlines reports financial results under RAS for first nine months of 2014

Transaero’s financial results under Russian Accounting Standards for the first three quarters of 2014 saw revenue from air operations increase by 6% in comparison with the same period of 2013 and reach RUB84.8bn (US$2.4bn). The airline’s cost reduction programme adopted in 2012 has delivered savings in the first three quarters of 2014, with selling costs reduced by 8% and administrative costs reduced by 15%. Despite the negative external factors including the requirement to bypass Ukraine when operating transit flights, Transaero’s profit from sales increased by 63% and reached RUB6.7bn (US$188.8m). The airline’s net profit reached RUB130m (US$3.7m). The airline has reached this result despite the significant growth of foreign exchange and forward operations losses, which amounted to RUB1.6bn (US$46.8m) in the first nine months of 2014; as a comparison foreign exchange and forward operations losses in the first nine months of 2013 were 266 million RUB (US$8.4m). The balance-sheet total reached RUB123bn (US$3.1bn).