Results reflect successful restructuring (134 words)

Published: 7/11/2001

Aeroflot has reported selected numbers from its audited 2000 IAS financials with net profit in line with market forecasts with marginally better top line growth offset by fuel increases.

Aeroflot selected 2000 IAS financials
$ mn	1998	1999	Actual 2000 IAS	2001F (UFG forecast)
Total sales, incl.	1,403	1,166	n/a	1480
Flight revenues	1,000	865	1074	1204
Non-flight revenues	403	301	n/a	276
Operating expenses, incl.	-1,410	-1,160	n/a	-1,361
Fuel costs	-227	-201	-335	-295
Profit/loss before taxation and minority interests	-76	-6	39.5	87
Net profit/loss for the year	-210	-60	9	59
Source: Aeroflot, UFG Research

Aeroflot continues to demonstrate strong passenger growth for 1H01, although the seat load factor has fallen slightly in June reflecting the increase in frequencies as the airline endeavours to gain market share. A tactic that has proved to be successful if growth of 5% above the industry's average is anything to judge by.

Aeroflot 1H01 operating results
	1H00	1H01	% chng	Jun-00	Jun-01	% chng
Passengers, (millions)	2,218	2,702	22%	459	564	23%
Cargo carried ( '000 tonnes)	49	49.1	0%	8.5	7.8	-8%
RPK	7,702	8,958	16%	1561	1,828	17%
ASK	12,383	13,997	13%	2,316	2,766	19%
Seat load factor	62%	64%	2%	67%	66%	-1%
Commercial load factor	52%	52%	0%	54%	51%	-4%
Average flight distance, km	3,470	3,320	-5%	3,400	3,200	-6%
Source: UFG Research

For Julia Zhdanova of Moscow based United Financial Group, the results clearly demonstrate the success of the company's restructuring programme, while strong operating growth and expected 25-30% top line growth in 1H01 along with lower jet fuel prices suggest that Aeroflot will post the highest growth rate in the industry this year.

Article ID: 2638