Aeroflot revenue up 40%

Aeroflot revenue up 40%

Aeroflot revenue up 40%

The FINANCIAL -- JSC Aeroflot on May 5 announces its financial results for the three months ended 31 March 2015 in accordance with Russian Accounting Standards («RAS»).

RAS results are presented on an unconsolidated basis for JSC Aeroflot only.

1Q 2015 Highlights

• Revenue of RUB 64,655 million, an increase of 40.2% year-on-year

• Cost of sales of RUB 55,215 million, up 29.6% year-on-year

• SG&A of RUB 14,011 million, up 119.6% year on year

• Net loss of RUB 4,230 million

Shamil Kurmashov, JSC Aeroflot’s Deputy CEO for Finance and Revenue Management, said:

"The challenging macroeconomic environment remained the primary factor putting pressure on JSC Aeroflot’s financial results in the first quarter of 2015. An overall decrease in consumer demand and a weaker rouble negatively affected profitability and offset the positive effect of strong operational results (notably a 9.8% year-on-year increase in passenger traffic).

"Additional factors that had an impact on the financial results were a consistent pricing policy focused on supporting traffic at a time when the country’s currency has undergone devaluation, and the fact that the first quarter is typically a slow season for passenger air travel.

"The results were also affected by factors including hedging operations and the social orientation of Aeroflot’s pricing policy.

"Although the external environment remains volatile, we remain confident in the enormous long-term potential of the Russian aviation market, and firmly believe that the Company’s strategy is robust enough to manage the challenges posed by the current economic situation".