Aeroflot debts deepen as rouble raises leasing costs and sales slide

Russia’s Aeroflot said on Tuesday its total debt rose by more than a third during the first nine months of 2020 as a weaker rouble raised its leasing costs and revenue fell. Russia’s central bank warned last week that airlines facing debt servicing problems due to the coronavirus crisis and the rouble weakness may need additional government support. Moscow has not imposed a complete lockdown during a second wave of the coronavirus and some international travel routes are gradually being restored, with Aeroflot resuming flights to Seoul, Belgrade and Tokyo in October and November. Aeroflot’s debt rose 36.1% to 780.55b roubles ($10.3b) by the end of Q3, when many passenger planes around the world remained grounded by the pandemic. In October, Aeroflot announced plans to raise at least 80b roubles in a secondary public offering (SPO) in Moscow for general corporate purposes and deleveraging. Despite cutting operating costs, excluding aircraft fuel, by almost a third in July-September to 77.42b roubles, Aeroflot reported a Q3 net loss of 21.1b roubles, compared to a 29.1b rouble profit a year ago.<br/>