Aeroflot Group Announces Operating Results for June 2017

25 July 2017

Moscow, 25 July 2017 – Today, Aeroflot PJSC (Moscow Exchange ticker: AFLT) announces operating results for Aeroflot Group (“the Group”) and Aeroflot – Russian Airlines (“the Company”) for June and the first six months of 2017 [1].

January – June, 2017 Operating Highlights

In the first six months of 2017, Aeroflot Group carried 23.0 million passengers, up 16.6% year-on-year. Aeroflot airline carried 15.2 million passengers, a year-on-year increase of 13.5%.

Group and Company RPKs increased by 18.8% and 11.7% year-on-year, respectively. ASKs rose by 15.9% year-on-year for Aeroflot Group and by 9.6% for Aeroflot airline.

The passenger load factor increased by 2.0 p.p. year-on-year to 80.6% for the Group and by 1.4 p.p. year-on-year to 80.3% for the Company.

June 2017 Operating Highlights

In June 2017, Aeroflot Group carried 4.7 million passengers, up 19.4% year-on-year. Aeroflot airline carried 2.9 million passengers, a year-on-year increase of 14.8%.

Group and Company RPKs increased by 20.6% and 10.8% year-on-year, respectively. ASKs rose by 18.2% year-on-year for Aeroflot Group and by 9.6% for Aeroflot airline.

On domestic routes, Group passengers carried and RPKs grew by 10.7% and 10.3% year-on-year, respectively. ASKs grew by 10.1% year-on-year. Company passengers carried and RPKs on domestic routes were up 12.0% and 4.7% year-on-year, respectively. ASKs grew by 5.0%.

In June 2017, the number of passengers carried on the Group’s international routes increased by 32.0% year-on-year. RPKs increased by 29.6%, while capacity grew by 24.9%. The number of passengers carried by Aeroflot airline on international routes increased by 17.6%. RPKs increased by 14.5%, and ASKs by 12.2%. Growth in the international segment was driven by the stable demand in line with the strengthening ruble, increased flight frequencies and the launch of flights to new international destinations, as well as the development of Rossiya’s partnerships with tour operators and of Pobeda’s international route network.

As a result of these factors, the passenger load factor increased by 1.7 p.p. year-on-year to 85.6% for the Group. For the Company the passenger load factor increased by 0.9 p.p. year-on-year to 85.1%.

Fleet Update

In June 2017, the Group added five aircraft: one Airbus A320, one Airbus A321, two Boeing 737-800 and one Boeing 777-300ER. At the same time two Airbus A320 were phased out of the Aeroflot Group fleet. As of 30 June 2017, the Group had 298 aircraft (excluding one An-24 which was leased out and five An-148 which were subleased).

In June 2017, Aeroflot airline added four aircraft: one Airbus A320, one Airbus A321, one Boeing 737-800 and one Boeing 777-300ER. At the same time two Airbus A320 were phased out of the Company fleet. Overall, the fleet of the Aeroflot airline increased by two aircraft in June 2017, bringing the total fleet to 199 aircraft as of 30 June 2017.

Aeroflot Group Operating Results

June
2017
June
2016
Change 6 months 2017 6 months 2016 Change
Passengers carried, thousand PAX 4,706.7 3,942.9 19.4% 22,962.0 19,694.7 16.6%
- international 2,121.6 1,607.6 32.0% 10,245.4 8,092.2 26.6%
- domestic 2,585.1 2,335.3 10.7% 12,716.6 11,602.5 9.6%
Revenue Passenger Kilometres, mln 12,103.1 10,036.6 20.6% 59,391.5 50,011.0 18.8%
- international 6,952.7 5,366.8 29.6% 35,523.3 28,276.4 25.6%
- domestic 5,150.4 4,669.8 10.3% 23,868.2 21,734.6 9.8%
Available Seat Kilometres, mln 14,135.6 11,957.3 18.2% 73,719.0 63,616.9 15.9%
- international 8,166.1 6,536.7 24.9% 43,741.5 36,830.1 18.8%
- domestic 5,969.5 5,420.6 10.1% 29,977.5 26,786.8 11.9%
Passenger load factor, % 85.6% 83.9% 1.7 p.p. 80.6% 78.6% 2.0 p.p.
- international 85.1% 82.1% 3.0 p.p. 81.2% 76.8% 4.4 p.p.
- domestic 86.3% 86.1% 0.2 p.p. 79.6% 81.1% (1.5 p.p.)
Cargo and mail carried, tonnes 21,743.5 15,343.5 41.7% 122,349.7 84,797.5 44.3%
- international 11,715.3 6,459.9 81.4% 68,901.9 39,213.3 75.7%
- domestic 10,028.2 8,883.6 12.9% 53,447.8 45,584.2 17.3%
Revenue Cargo Tonne Kilometres, mln 98.4 68.2 44.3% 554.1 369.5 50.0%
- international 57.5 29.8 93.0% 341.4 182.8 86.8%
- domestic 40.9 38.4 6.5% 212.7 186.7 13.9%
Revenue Tonne Kilometres, mln 1,187.7 971.5 22.3% 5,899.3 4,870.5 21.1%
- international 683.2 512.8 33.2% 3,538.5 2,727.6 29.7%
- domestic 504.5 458.7 10.0% 2,360.8 2,142.9 10.2%
Available Tonne Kilometres, mln 1,678.9 1,451.0 15.7% 8,903.6 7,723.6 15.3%
- international 958.6 794.1 20.7% 5,288.7 4,542.3 16.4%
- domestic 720.3 656.9 9.7% 3,614.9 3,181.3 13.6%
Revenue load factor, % 70.7% 67.0% 3.7 p.p. 66.3% 63.1% 3.2 p.p.
- international 71.3% 64.6% 6.7 p.p. 66.9% 60.0% 6.9 p.p.
- domestic 70.0% 69.8% 0.2 p.p. 65.3% 67.4% (2.1 p.p.)
Revenue flights 32,357 28,735 12.6% 174,858 158,314 10.5%
- international 13,566 11,823 14.7% 72,285 64,220 12.6%
- domestic 18,791 16,912 11.1% 102,573 94,094 9.0%
Flight hours for fleet 88,818 79,528 11.7% 477,239 430,868 10.8%

Aeroflot – Russian Airlines Operating Results

June
2017
June
2016
Change 6 months 2017 6 months 2016 Change
Passengers carried, thousand PAX 2,918.7 2,542.5 14.8% 15,245.6 13,438.1 13.5%
- international 1,494.5 1,271.3 17.6% 8,006.9 6,783.0 18.0%
- domestic 1,424.2 1,271.2 12.0% 7,238.7 6,655.1 8.8%
Revenue Passenger Kilometres, mln 7,978.2 7,199.5 10.8% 42,800.9 38,326.8 11.7%
- international 5,136.6 4,486.0 14.5% 28,565.1 24,548.6 16.4%
- domestic 2,841.6 2,713.5 4.7% 14,235.8 13,778.2 3.3%
Available Seat Kilometres, mln 9,375.4 8,551.9 9.6% 53,289.2 48,602.9 9.6%
- international 6,168.7 5,496.6 12.2% 35,891.2 32,087.0 11.9%
- domestic 3,206.7 3,055.3 5.0% 17,398.0 16,515.9 5.3%
Passenger load factor, % 85.1% 84.2% 0.9 p.p. 80.3% 78.9% 1.4 p.p.
- international 83.3% 81.6% 1.7 p.p. 79.6% 76.5% 3.1 p.p.
- domestic 88.6% 88.8% (0.2 p.p.) 81.8% 83.4% (1.6 p.p.)
Cargo and mail carried, tonnes 17,946.4 12,896.6 39.2% 104,195.6 74,239.6 40.4%
- international 11,503.9 6,324.1 81.9% 67,699.0 38,188.1 77.3%
- domestic 6,442.5 6,572.5 (2.0%) 36,496.6 36,051.5 1.2%
Revenue Cargo Tonne Kilometres, mln 82.3 58.9 39.7% 483.2 344.2 40.4%
- international 56.5 29.4 92.2% 336.0 180.6 86.0%
- domestic 25.8 29.5 (12.5%) 147.2 163.6 (10.0%)
Revenue Tonne Kilometres, mln 800.3 706.9 13.2% 4,335.3 3,793.6 14.3%
- international 518.8 433.2 19.8% 2,906.8 2,390.0 21.6%
- domestic 281.5 273.7 2.8% 1,428.5 1,403.6 1.8%
Available Tonne Kilometres, mln 1,132.7 1,068.8 6.0% 6,536.9 6,066.8 7.7%
- international 744.1 680.3 9.4% 4,434.0 4,004.2 10.7%
- domestic 388.6 388.5 0.0% 2,102.9 2,062.6 2.0%
Revenue load factor, % 70.7% 66.1% 4.6 p.p. 66.3% 62.5% 3.8 p.p.
- international 69.7% 63.7% 6.0 p.p. 65.6% 59.7% 5.9 p.p.
- domestic 72.4% 70.5% 1.9 p.p. 67.9% 68.1% (0.2 p.p.)
Revenue flights 20,482 18,389 11.4% 115,745 105,726 9.5%
- international 10,129 9,243 9.6% 57,905 53,024 9.2%
- domestic 10,353 9,146 13.2% 57,840 52,702 9.7%
Flight hours for fleet 58,654 53,647 9.3% 334,934 308,269 8.6%

[1] According to management accounts.