Russia’s Aeroflot flies back into the black
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. –