Aeroflot losses hit $1.3b in 2020
Aeroflot incurred a net loss in 2020 amid slumping revenue as passenger numbers were hammered by the Covid-19 crisis. “On the back of the deepest crisis in the history of aviation with [an] almost complete halt of international traffic in the second and third quarters and anti-epidemic measures in the Russian regions, which led to significant pressure on demand, the company’s net loss for the year amounted to Rb96.5b [$1.3b],” states the carrier, which had made a profit of Rb5.3bin 2019. Revenue almost halved, falling from from Rb552b to Rb228b. Aeroflot notes that its dramatic cuts to capacity, plus cost reductions and additional revenues from air cargo transport, helped to “partially minimise” the negative impact of the crisis on its results. Amid a near-total collapse in traffic during the initial weeks of the crisis, passenger numbers fell 85% year on year in the second quarter. This moderated to 67% in the following three months, and 59% in the fourth quarter as Aeroflot made efforts to restore capacity. Earnings were supported by “the continued restoration of international flights through frequency increases and resumption of flights to a number of destinations” as the year progressed, notes the airline. It operated 94% more international flights in Q4 than Q3, though passenger growth lagging behind, increasing 56%.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2021-02-08/sky/aeroflot-losses-hit-1-3b-in-2020
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Aeroflot losses hit $1.3b in 2020
Aeroflot incurred a net loss in 2020 amid slumping revenue as passenger numbers were hammered by the Covid-19 crisis. “On the back of the deepest crisis in the history of aviation with [an] almost complete halt of international traffic in the second and third quarters and anti-epidemic measures in the Russian regions, which led to significant pressure on demand, the company’s net loss for the year amounted to Rb96.5b [$1.3b],” states the carrier, which had made a profit of Rb5.3bin 2019. Revenue almost halved, falling from from Rb552b to Rb228b. Aeroflot notes that its dramatic cuts to capacity, plus cost reductions and additional revenues from air cargo transport, helped to “partially minimise” the negative impact of the crisis on its results. Amid a near-total collapse in traffic during the initial weeks of the crisis, passenger numbers fell 85% year on year in the second quarter. This moderated to 67% in the following three months, and 59% in the fourth quarter as Aeroflot made efforts to restore capacity. Earnings were supported by “the continued restoration of international flights through frequency increases and resumption of flights to a number of destinations” as the year progressed, notes the airline. It operated 94% more international flights in Q4 than Q3, though passenger growth lagging behind, increasing 56%.<br/>
