Wednesday, 30 May 2018

Losses at Aeroflot double....

One of the most recognised airline brands globally is the largest Russian airline, Aeroflot and the carrier posted a loss of 11.54 billion rubles for the first quarter of 2018, which is around US$184, which is more than double the 5.34 billion rubles over the same period last year.

The Russian flag carrier doesn't usually issue quarterly figures, said that the increased fuel costs surged 24.1%, it also saw staffing costs rising 15.1% which contributed to an increase in operating costs of 14.3%

Aeroflot’s Deputy CEO for Commerce and Finance Shamil Kurmashov said,“An increase in leasing expenses due to significant fleet expansion, as well as our initiatives to improve working conditions and increase salaries for cabin crew, led to a decrease in the overall financial result compared to the same period last year,” 

Many believed the results were much better than had been anticipated and because of this shares in Aeroflot rose upon the publication of the figures and pave the way for a more ambitious growth programme for the airline.