Rus­sia’s Aeroflot flies back into the black

The Myanmar Times - - International Business -

RUS­SIA’S flag­ship car­rier Aeroflot has pi­loted a re­turn to profit af­ter rein­ing in its costs and en­joy­ing an as­cent in pas­sen­ger num­bers among its com­pany air­lines.

The state-con­trolled com­pany posted a net profit of 2.5 bil­lion rubles (US$38 mil­lion) for the first half of the year, com­pared to a loss of 3.5 bil­lion rubles a year ear­lier.

Rus­sia’s avi­a­tion industry has strug­gled in the face of the coun­try’s eco­nomic cri­sis caused by fall­ing oil prices and Western sanc­tions im­posed over Moscow’s ac­tions in Ukraine.

The col­lapse of the ru­ble has also in­flated cer­tain costs, es­pe­cially in air­craft leas­ing.

Aeroflot, which also op­er­ates Ros­siia and Pobeda air­lines, has ce­mented its lead­ing po­si­tion af­ter the eco­nomic trou­ble saw Rus­sia’s sec­ond-big­gest car­rier Transaero stop fly­ing last Oc­to­ber due to fi­nan­cial prob­lems.

From Jan­uary to June, Aeroflot’s pas­sen­ger vol­ume ac­cel­er­ated by more than 10 per­cent to 19.7 mil­lion pas­sen­gers, send­ing sales soar­ing by 27 per­cent.

EBITDA (earn­ings be­fore in­ter­est, taxes, de­pre­ci­a­tion and amor­ti­sa­tion), a mea­sure of the com­pany’s op­er­at­ing per­for­mance, dou­bled to reach 30 bil­lion rubles. –

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