Aeroflot announces RUB 63,254 million (US$660 million) net profit for 2016

Aeroflot Group has published audited financial accounts for the year ending 31st December 2016 which reveal a net profit of RUB 63,254 million for the Russian flag-carrying airline and member of the Sky Team alliance. Revenue increased by 19.4% year-on-year to RUB 495,880 million; EBITDAR amounted to RUB 137,567 million, up 33.4% year-on-year, while EBITDAR margin increased by 2.9 p.p, to 27.7%; EBITDA amounted to RUB 78,004 million, rising 32.9% year-on-year, while EBITDA margin grew by 1.6 p.p. and amounted to 15.7%; Operating profit amounted to RUB 63,254 million, up 43.4% year-on-year;
Commenting on the results, Shamil Kurmashov, PJSC Aeroflot Deputy CEO for Commerce and Finance, said that: “Aeroflot’s IFRS financial results improved significantly in 2016. This was underpinned by growth and development of the business, a net positive foreign exchange effect on revenues and costs while maintaining tight control of operating expenses thanks to a high level of digitalisation, and also the effect of operating leverage due to higher passenger load factors.”
Revenue from scheduled passenger flights increased by 17.6% to RUB 403,760 million, boosted by 10.3% growth in passenger numbers year-on-year. Revenue from charter flights almost tripled to RUB 17,617 million, driven by an increase in operations in this segment following the launch of Rossiya’s charter programme. Cargo revenue rose 30.7% year-on-year to RUB 12,589 million as cargo and mail volumes grew 31.6% driven by addition of wide-body aircraft. Total debt as of 31 December 2016 decreased by 38.4% versus 31 December 2015 to RUB 143,908 million. The reduction was the result of repayment of loans and borrowings both as they came due and ahead of schedule, adjustments in the valuation of financial leases due to changes in the RUB-USD exchange rate as of 31 December 2016 versus 31 December 2015, and disposal of nine aircraft (15.8%) on financial leases versus 31 December 2015. (US$1.00 = RUB 58.85 at time of publication.)