Aeroflot Group claims first-half net profit under international accounting

Aeroflot Group is claiming a net profit of Rb42.3b ($462m) over the first half of the year, under international accounting standards. It attributes the performance to higher traffic levels and load factor, combined with cost control. Adjusted for exchange-rate valuations and the effect of insurance settlement in the first half, the net profit would have been Rb27b. The company made a first-half loss of Rb102b – or Rb20b after adjustments – last year. “Aeroflot has continued to improve its financial results over the past four quarters,” says finance chief Andrei Chikhanchin, adding that the company achieved the interim net profit “for the first time in a long time”. He says the operating environment “remains challenging”, with the company having to cope with international flight restrictions – requiring “non-standard solutions” – while fuel, airport fees and maintenance costs are increasing. Maintenance expenditure more than doubled to nearly Rb19b, albeit from a relatively low base, as a result of “significant increase” in the cost of components, says the group. Chikhanchin says achieving profitability is important given the conditions under which the company is operating, and the need to ensure funding for its digital transformation programme and other capital expenditure.<br/>