Aeroflot 2018 net profit drops 75% on fuel costs, currency depreciation
Russia’s Aeroflot Group reported a RUB5.7b ($82m) net profit for 2018, down 75% from RUB23b in 2017—a decline the group attributed to higher fuel prices and foreign exchange losses. “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 RUB48 billion. The depreciation of the ruble created additional pressure on the financial results, given that almost half of the company’s costs are FX [foreign exchange]-denominated,” Aeroflot deputy CEO Andrey Chikhanchin said. The company posted a net loss for Q4 of RUB16.8b, compared to a RUB4.09b loss in the year-ago period. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-03-06/sky/aeroflot-2018-net-profit-drops-75-on-fuel-costs-currency-depreciation
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Aeroflot 2018 net profit drops 75% on fuel costs, currency depreciation
Russia’s Aeroflot Group reported a RUB5.7b ($82m) net profit for 2018, down 75% from RUB23b in 2017—a decline the group attributed to higher fuel prices and foreign exchange losses. “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 RUB48 billion. The depreciation of the ruble created additional pressure on the financial results, given that almost half of the company’s costs are FX [foreign exchange]-denominated,” Aeroflot deputy CEO Andrey Chikhanchin said. The company posted a net loss for Q4 of RUB16.8b, compared to a RUB4.09b loss in the year-ago period. <br/>
