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High fuel costs offset by increased efficiency (310 words)
Published:
11/28/2000
Aeroflot's third quarter financials under Russian Accounting Standards showed
a small improvement in the airline's profitability both at the operating and
net level, returning a net income of $4m over losses in Q3 1999.
| |
9mo99 |
9mo00 |
|
9mo99 |
9mo00 |
|
| |
Rb m |
Rb m |
change |
$ m |
$ m |
change |
| Passengers sales |
16,811 |
22,457 |
34% |
677.9 |
807.8 |
19% |
| Cargo and mail sales |
1,596 |
2,239 |
40% |
64.4 |
80.5 |
25% |
| Other sales |
609 |
730 |
20% |
24.6 |
26.3 |
7% |
| Total sales |
19,017 |
25,426 |
34% |
766.8 |
914.6 |
19% |
| Technical service |
2,199 |
1,735 |
-21% |
88.7 |
62.4 |
-30% |
| Aircraft and engines repair |
1,311 |
1,620 |
24% |
52.8 |
58.3 |
10% |
| Jet fuel |
3,262 |
6,330 |
94% |
131.5 |
227.7 |
73% |
| Boeing 737 leasing |
905 |
1,165 |
29% |
36.5 |
41.9 |
15% |
| Agents commission |
561 |
1,542 |
175% |
22.6 |
55.5 |
145% |
| Other operating costs |
9,965 |
11,243 |
13% |
401.8 |
404.4 |
1% |
| Operating costs |
18,203 |
23,634 |
30% |
734.0 |
850.1 |
16% |
| Gross profit |
814 |
1,793 |
120% |
32.8 |
64.5 |
96% |
| Commercial expenses |
648 |
1,619 |
150% |
26.1 |
58.2 |
123% |
| Management expenses |
671 |
703 |
5% |
27.0 |
25.3 |
-6% |
| Operating profit |
-504 |
-530 |
5% |
-20.3 |
-19.1 |
-6% |
| Other operating income |
232 |
864 |
272% |
9.4 |
31.1 |
232% |
| Other operating expenses |
414 |
466 |
13% |
16.7 |
16.8 |
1% |
| Non-operating income |
1,719 |
3,435 |
100% |
69.3 |
123.6 |
78% |
| Non-oprating expenses |
1,049 |
2,283 |
118% |
42.3 |
82.1 |
94% |
| Pre-tax profit |
-16 |
1,020 |
nm |
-0.6 |
36.7 |
nm |
| Taxes |
461 |
917 |
99% |
18.6 |
33.0 |
77% |
| After-tax profit |
-477 |
104 |
nm |
-19.2 |
3.7 |
nm |
| Rb/$ exchange rate |
24.8 |
27.8 |
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Aeroflot has reduced its operating losses under RAS due to growth in the airline's
international traffic and increases in the domestic ticket prices, which rose
by 9% in the year to September, although recorded a fall of 10% in the last
three months reflecting a combination of closing unprofitable international
routes and the opening of new domestic routes. The airline did however, announce
that it intended to continue to raise ticket prices to reflect fuel increases
and added $10 to a round trip ticket in October. Non operating income also showed
substantial growth over the first nine months of 2000 showing increases in over
flight revenues and was accompanied by increases in other operating revenues
from asset disposals and foreign exchange gains, although slightly offset by
debt write offs and retained losses.
| |
9mo 99 |
9mo00 |
change |
| Passengers, 000 |
3,568.7 |
3,897.0 |
9.2% |
| Cargo carried, tonnes |
61,447 |
75,767 |
23.3% |
| Seat load |
59.5% |
65.2% |
9.6% |
| Commercial load |
50.1% |
54.4% |
8.6% |
| Jet fuel consumption, g/tkm |
624 |
559 |
-10.4% |
| Total jet fuel consumption, tonnes |
960 |
934 |
-2.7% |
Despite significant rises in the price of fuel of 20% in the third quarter,
up by 73% on the same period in 1999, and an increase as a proportion of costs
from 18% to 27%, margins were only slightly softer. This reflected the traditionally
high traffic period for the carrier, the greater fuel efficiency of Aeroflot's
fleet, where consumption fell by 10%, and lower maintenance expenses (14% of
costs) down by 18%.Both factors reflecting the changes in aircraft and the move
of the maintenance of western aircraft from contractor Lufthansa to Aeroflot's
own facilities . The value of the passengers to the airline however, fell as
the changing mix towards the domestic traveller reduced RPK. Sales revenues
overall increased by 19% in dollar terms in the period reflecting the 9.2% increase
in passengers and increases in seat load factors by 9.6% combined with new domestic
routes.
| |
9mo99 |
9mo00 |
change |
| Passengers sales |
88.4% |
88.3% |
-0.1% |
| Cargo and mail sales |
8.4% |
8.8% |
4.9% |
| Other sales |
3.2% |
2.9% |
-10.4% |
| Total sales |
100.0% |
100.0% |
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Article ID:
2216
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