Higher fuel prices contribute to Aeroflot Group’s 41% net profit loss in 2017
Aeroflot Group reported a 2017 net income of RUB23b (US$399m), down 41% from RUB38.8b for 2016, which the Russian flag carrier attributed to higher oil prices and foreign exchange losses. Revenue for the year grew 7.5% year-over-year (YOY) to RUB532.9b. Operating profit decreased 36.1% YOY to RUB40.4b. “Higher oil prices and the change in ruble and currency correlation pattern rate put pressure on fuel costs, a key expense item accounting for 24.9% of operating costs,” Aeroflot deputy CEO Shamil Kurmashov said. Aircraft fuel costs grew 20.8% to RUB122.7m. “Given the impact of FX [foreign exchange] swings and higher fuel prices—as well as the lack of the material currency differences on returns of pre-payments for aircraft that affected the 2016 results—the financial result for 2017 was lower, reflecting the normalisation of profitability,” Kurmashov added. Aeroflot Group’s airlines carried 50.1m passengers in 2017, up 15.4% YOY. “The group continued its sustainable growth on domestic and international routes. The group utilized its significant capacity additions—up 14.2% YOY—efficiently, resulting in an increased load factor of 82.8%, 1.4 points higher than in 2016,” Aeroflot said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-03-02/sky/higher-fuel-prices-contribute-to-aeroflot-group2019s-41-net-profit-loss-in-2017
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Higher fuel prices contribute to Aeroflot Group’s 41% net profit loss in 2017
Aeroflot Group reported a 2017 net income of RUB23b (US$399m), down 41% from RUB38.8b for 2016, which the Russian flag carrier attributed to higher oil prices and foreign exchange losses. Revenue for the year grew 7.5% year-over-year (YOY) to RUB532.9b. Operating profit decreased 36.1% YOY to RUB40.4b. “Higher oil prices and the change in ruble and currency correlation pattern rate put pressure on fuel costs, a key expense item accounting for 24.9% of operating costs,” Aeroflot deputy CEO Shamil Kurmashov said. Aircraft fuel costs grew 20.8% to RUB122.7m. “Given the impact of FX [foreign exchange] swings and higher fuel prices—as well as the lack of the material currency differences on returns of pre-payments for aircraft that affected the 2016 results—the financial result for 2017 was lower, reflecting the normalisation of profitability,” Kurmashov added. Aeroflot Group’s airlines carried 50.1m passengers in 2017, up 15.4% YOY. “The group continued its sustainable growth on domestic and international routes. The group utilized its significant capacity additions—up 14.2% YOY—efficiently, resulting in an increased load factor of 82.8%, 1.4 points higher than in 2016,” Aeroflot said. <br/>
