Published on : Monday, March 4, 2019
Key financial highlights
| RUB million, unless stated otherwise | 4Q 2018 | 4Q 2017 | Change | 12M 2018 | 12M 2017 | Change |
| Revenue | 145,225 | 128,161 | 13.3% | 611,570 | 532,934 | 14.8% |
| EBITDAR | 11,522 | 20,792 | (44.6%) | 122,479 | 121,808 | 0.6% |
| EBITDAR margin | 7.9% | 16.2% | (8.3) p.p. | 20.0% | 22.9% | (2.9) p.p. |
| EBITDA | (13,591) | 2,709 | – | 33,598 | 56,015 | (40.0%) |
| EBITDA margin | – | 2.1% | – | 5.5% | 10.5% | (5.0) p.p. |
| (Loss) / profit for the period | (16,777) | (4,089) | – | 5,713 | 23,060 | (75.2%) |
Andrey Chikhanchin, PJSC Aeroflot Deputy CEO for Commerce and Finance, said:
“In 2018 Aeroflot Group carried 55.7 million passengers, an 11.1% increase year-on-year. Growth of operational metrics resulting from the expansion of our route network and additions to the fleet were accompanied by significant developments in the Group’s strategy. Aeroflot, our flagship airline, moved domestic flights to a new, modern terminal at Sheremetyevo airport, leading to an increase in service quality on the ground. Rossiya moved its scheduled flights from Vnukovo to Sheremetyevo, leading to improved transit connectivity with Aeroflot’s core network. Pobeda significantly increased growth rates, expanding the availability of its low-cost product offering. Finally, another important landmark was the updating of the Group’s long-term targets for the next five years.
“The most significant factor affecting the Group’s financial results for 2018 was the unprecedentedly fast increase in the average cost of jet fuel, as well as depreciation of the ruble. Across the Group, jet fuel prices increased by 36%, which at the Group’s consumption volumes led to additional cost of RUB 48 billion. The depreciation of the ruble created additional pressure on the financial results, given that almost half of the Company’s costs are FX-denominated.
“In this situation, a special optimisation programme was launched in addition to existing measures to boost operational efficiency and reduce costs. The programme focused on active capacity and revenue management in addition to direct cost reduction, and has already delivered results: excluding fuel, CASK for the full year increased by just 0.8%, despite increasing currency pressures on FX-denominated cost lines. We were thus able to limit increases in total unit costs, including fuel, to 9.2%. In a climate in which domestic consumers are being conservative with their travel spending, we were able to generate RASK growth of 4.9% while maintaining load factor levels.
“High fuel prices and excess capacity in the market persisted during the low season in Q4. The correction in oil prices was reflected in jet fuel prices only in December, but had a limited effect, while average jet fuel prices remained above the levels of the previous year. Currency pressures on operating costs in Q4 did not weaken, but rather strengthened. These factors explain the increased loss for the final quarter of the year.
“However, despite the record increase in the price of jet fuel and the depreciation of the ruble, thanks to its extensive optimisation programme the Group was able to record a profit for the year of RUB 5,713 million.”
Key operating highlights
| 4Q 2018 | 4Q 2017 | Change | 12M 2018 | 12M 2017 | Change | |
| Passengers carried, thousand PAX | 13,462 | 11,789 | 14.2% | 55,710 | 50,129 | 11.1% |
| – international | 5,978 | 5,329 | 12.2% | 24,737 | 22,550 | 9.7% |
| – domestic | 7,483 | 6,460 | 15.8% | 30,973 | 27,579 | 12.3% |
| Revenue Passenger Kilometres, million | 34,723 | 30,841 | 12.6% | 143,151 | 130,222 | 9.9% |
| – international | 20,524 | 18,627 | 10.2% | 83,249 | 77,034 | 8.1% |
| – domestic | 14,199 | 12,214 | 16.3% | 59,901 | 53,188 | 12.6% |
| Available Seat Kilometres, million | 43,682 | 38,457 | 13.6% | 173,075 | 157,211 | 10.1% |
| – international | 26,663 | 23,610 | 12.9% | 102,843 | 93,429 | 10.1% |
| – domestic | 17,019 | 14,847 | 14.6% | 70,231 | 63,781 | 10.1% |
| Passenger load factor, % | 79.5% | 80.2% | (0.7) p.p. | 82.7% | 82.8% | (0.1) p.p. |
| – international | 77.0% | 78.9% | (1.9) p.p. | 80.9% | 82.5% | (1.5) p.p. |
| – domestic | 83.4% | 82.3% | 1.2 p.p. | 85.3% | 83.4% | 1.9 p.p. |
In 2018, Aeroflot Group carried 55.7 million passengers, up 11.1% year-on-year.
Revenue
| RUB million, unless stated otherwise | 4Q 2018 | 4Q 2017 | Change | 12M 2018 | 12M 2017 | Change |
| Passenger traffic revenue | 124,318 | 107,888 | 15.2% | 534,292 | 458,390 | 16.6% |
| – scheduled passenger flights | 117,046 | 99,803 | 17.3% | 496,454 | 427,529 | 16.1% |
| – charter passenger flights | 7,272 | 8,085 | (10.1%) | 37,838 | 30,861 | 22.6% |
| Cargo flight revenue | 6,061 | 5,226 | 16.0% | 18,900 | 16,526 | 14.4% |
| Other revenue | 14,846 | 15,047 | (1.3%) | 58,378 | 58,018 | 0.6% |
| Total revenue | 145,225 | 128,161 | 13.3% | 611,570 | 532,934 | 14.8% |
In 2018, Aeroflot Group’s revenue increased by 14.8% year-on-year to RUB 611,570 million.
Revenue from scheduled passenger flights increased by 16.1% year-on-year to RUB 496,454 million, driven by an increase in passenger traffic. Revenue growth was affected by an increase in yields, primarily on international routes, due to the weakening of the ruble against the euro and the consequent effect of this on FX-denominated revenue.
Revenue from charter flights increased by 22.6% year-on-year to RUB 37,838 million, due among other factors to an increase in unit yields on charter flights and the expansion of Rossiya’s charter programme Cargo revenue rose by 14.4% year-on-year, to RUB 18,900 million as cargo and mail volumes grew by 11.2%.
Other revenue increased by 0.6% year-on-year to RUB 58,378 million due to a rise in FX-denominated revenues from agreements with other airlines, which was offset to a significant degree by a decrease in maintenance of aircraft belonging to other airlines, as well as the introduction of the new IFRS 15 standard, which affects the classification of service fees for reservation changes between other revenue and revenue from scheduled passenger flights.
Operating costs
| RUB million, unless stated otherwise | 4Q 2018 | 4Q 2017 | Change | 12M 2018 | 12M 2017 | Change |
| Aircraft servicing and passenger services | 28,321 | 21,712 | 30.4% |
Source:- Aeroflot
Tags: Aeroflot Airlines