Daily Management Review

Russia's Aeroflot Reports Its First Quarterly Profit In Two Years


Russia's Aeroflot Reports Its First Quarterly Profit In Two Years
Aeroflot, Russia's most popular airline Aeroflot announced on Monday the first quarter of net profit since 2019 , as the growth of both international and domestic travel accelerated.
Aeroflot which saw its shares rise by 1.6 per cent at 0941 GMT reported its net income for its third-quarter was 11.6 billion rubles ($155 million) as compared to the deficit in the amount of 21.14 billion roubles one year prior.
Aeroflot's traffic in the domestic market has increased as Russia has stayed clear of imposing an entire lockdown in the wake of an outbreak of new infections.
Compared to the third quarter of the year of 2018, Aeroflot's passenger count in its domestic network was 27.4 per cent more than the same timeframe in 2019 - before the outbreak.
"We also took maximum advantage of the gradual lifting of restrictions in the international segment, and this also had a significant positive impact on the results," Andrey Chikhanchin, Aeroflot’s Deputy CEO for Commerce and Finance, said.
Berenberg analysts reported on Monday new security measures in some parts of Europe along with the spread of the latest Omicron coronavirus variant posed a threat to the recovery of the field of air travel.
Aeroflot's earnings before interest taxes, depreciation and amortisation (EBITDA) in the third quarter were 54.05 billion roubles, as compared with 20.09 billion roubles just a year earlier.
The company stated that it would to keep a tight control on costs since its fuel prices jumped by 41.7 per cent year-on-year during the first nine-months of 2021.
Aeroflot announced this month that it was planning to increase the cost of fuel for its domestic and international routes due to an increase in the cost of jet fuel.