Transaero Airlines’ passenger traffic rose to 10.5 million passengers from January to September 2014, making it 6.4 percent higher than for the same period of 2013, according to the published financial results under RAS (Russian Accounting Standards) and key operational indicators for the first nine months of 2014.
Passenger turnover on domestic routes over the same period grew by 35 percent, demonstrating the highest growth among the top five largest Russian airlines. Passenger load factor at 85 percent was also the highest among the top five carriers in Russia.
The airline’s financial results under RAS for the first three quarters of 2014 saw revenue from air operations increase by 6 percent in comparison with the same period of 2013, reaching 84.8 billion rubles ($2.4 billion).
The cost reduction program adopted by the airline in 2012 has delivered savings in the first three quarters of 2014, with sales costs reduced by 8 percent and administrative costs reduced by 15 percent.
Despite negative external factors, including the requirement to bypass Ukraine when operating transit flights, Transaero’s profit from sales increased by 63 percent to reach 6.7 billion rubles ($188.8 million).
The airline’s net profit reached 130 million rubles ($3.7 million). The airline has reached this result despite the significant growth of foreign exchange and forward operations losses, which amounted to 1.7 billion rubles ($46.8 million) in the first nine months of 2014; as a comparison foreign exchange and forward operations losses in the first nine months of 2013 were 266 million Rubles ($8.4 million according to the exchange rate at the time).
The balance-sheet total reached 123 billion rubles ($3.1 billion).
The long term/short term borrowing ratio has been improved. By the end of the first nine months of 2014 this ratio was 48/52 percent, while at the beginning of the year it was 40/60 percent.
The Transaero subsidiary company Transaero Finance has reported a net profit of 954 million rubles ($26.9 million) for the first three quarters, compared to a loss of 273 million rubles ($8.6 million) for the equivalent period in 2013.
The overall profit of JSC Transaero Airlines and Transaero Finance LTD has thus reached 1.8 billion rubles ($34.5 million) as compared to 463 million rubles ($14.6 million according to the exchange rate at the time) a year ago.
As of the end of September 2014, capitalization of Transaero Airlines calculated in the national currency grew by 40.3 percent and exceeded 32 billion rubles ($812.4 million) in comparison with the results of September 2013 when the capitalization of the company was 22.85 billion rubles ($706.3 million).
Transaero Airlines launched services in 1991 and today is the second-largest carrier in the Russian Federation. In 2013 Transaero carried 12.5 million passengers. Transaero Airlines ranks among the top 35 airlines in the world and the top 10 in Europe in terms of passenger turnover.
All rights reserved by Rossiyskaya Gazeta.
to our newsletter!
Get the week's best stories straight to your inbox