The net loss for the same quarter of 2020 was RUB 35.8 billion, and this the closest that the Group has come to a positive result since the onset of the pandemic, including the summer season of 2020.
MOSCOW – Aeroflot Group publishes its condensed consolidated interim financial statements in accordance with International Financial Reporting Standards for the three months and six months ended 30 June 2021 (Q2 and H1 2021).
Andrey Chikhanchin, PJSC Aeroflot’s Deputy CEO for Commerce and Finance, said: “In the second quarter of 2021, Aeroflot Group took full advantage of opportunities in the domestic market and of the gradual resumption of international flights to improve its financial results. Given the COVID restrictions that are still in place, as well as the scale of Aeroflot Group’s operations and fleet, macro volatility including factors affecting on fuel costs, the impact of the pandemic on demand, and a decrease in forward bookings, the severalfold reduction in our quarterly net loss to RUB 2.6 billion is a significant improvement.The net loss for the same quarter of 2020 was RUB 35.8 billion, and this the closest that the Group has come to a positive result since the onset of the pandemic, including the summer season of 2020.
“Demand for domestic flights, including the effect of substituting international travel with flights within Russia, enabled Aeroflot Group in Q2 2021 to increase passenger traffic on domestic routes by 13.7% compared with Q2 2019. While international flights were once again down on 2019, by 77.7% for Q2, the rate of recovery is showing a positive trend. For example, international passenger traffic in Q1 2021 decreased by 84.2% from Q1 2019, but by June the decrease was already 75.4% compared with the same month of 2019, and the recovery was continuing at the start of the third quarter. However, despite pressure on yields, it was the domestic market that was the driving force behind our improved results and the severalfold reduction in losses.
“This recovery in flights drove an increase in revenue to RUB 119.7 billion in Q2 2021. EBITDA, which turned positive in Q1 2021, also continued to recover, totalling RUB 33.9 billion in Q2 2021, lower than in same period of 2019 but ahead of the RUB 20.1 billion we reported in the seasonally strong Q3 2020. At the same time, the EBITDA margin in the second quarter was 28.3%, ahead of the 27.1% recorded in Q2 2019.
“We remain focused on liquidity. As of the end of June 2021, cash and short-term financial investments had increased from the end of 2020 and totalled RUB 113.2 billion, which exceeded our debt, excluding leasing obligations. Liquidity was supported to a significant degree by an increase in bookings ahead of the high season. Moreover, to create an additional liquidity cushion, in June we issued five-year rouble-denominated bonds, which, in addition to enabling drawdown of a number of long-term lines of credit, helped us improve our debt structure by reducing the share of short-term liabilities in favour of long-term ones.
“The pandemic and its consequences continue to affect the Group’s results, which is why we continue to develop by taking advantage of the potential of the domestic market and what opportunities are available in the international market; we have launched and are planning to launch new routes both domestically and internationally. The considerable acceleration of vaccination rates in Russia – much needed for the transport industry – is already having a positive impact on flights and is boosting our confidence in the ongoing recovery in the aviation sector.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.