OREANDA-NEWS. Transaero Airlines has unveiled its operational and financial results under RAS for the first six months of 2014, which provide evidence that the carrier continues its sustainable development notwithstanding the difficult external environment and consumer response to the political, financial and economic events.

The number of passengers carried has increased by 4.8% to 5.75 million people. The growth on domestic routes reached 44.6% demonstrating the highest growth rate among the top five largest Russian carriers. The passenger turnover has decreased by 1% due to the significant decrease in passenger demand for flights to Egypt and Bangkok (Thailand) caused by political tensions in these countries, as well as due to significant decrease of transit traffic between Ukraine and the USA caused by the dramatic events in Ukraine.

For the first six months, Transaero cargo traffic has increased by 7.1% on the same period last year and exceeded 31,000 tonnes. The carrier occupies the leading position in terms of cargo turnover on domestic routes, that reached 135.1 million TKM. The airline demonstrated the highest growth rate of cargo traffic on domestic routes among the top five largest airlines in Russia (+14.4%).

Transaero also demonstrated the best result of passenger load factor (82.8%) among the top five passenger carriers in Russia.

Total revenue from all operations for the first six months of 2014 has increased by 1.1% over the same period of the previous year up to 48.8 billion rubles. Traffic revenue increased by 6.5%.

From 2012 Transaero has been successfully implementing the Cost Reduction Programme. Thanks to this programme the airline has managed to minimize its costs in operational and financial activities as well as to achieve the best ratio between number of management and operating personnel. The result of the programme's implementation in 2013 was estimated at 5.9 billion rubles. Under the programme in 2014:

Cost of sales of Transaero Airlines for the first six months of 2014 has decreased by 0.9%.

Selling expenses of the airline for the first six months of 2014 have decreased by 21% (mainly due to the reduction of costs on agent's commission). The administrative expenses decreased by 12.2 %. The expenses on advertisement have decreased.

Transaero's profit from sales in the first six months of 2014 grew by 97% and reached 3.2 billion rubles.

Due to the ruble's exchange rate fluctuations there has been an increase in the airline's interest payments. Mainly due to the changes in the ruble's exchange rate over the previous year, net other gains and losses became negative. These factors have caused a minor drop in profit before tax by 34 million rubles (10.5%).

Net profit allowing for the particularities in the accounting of deferred tax assets and liabilities reduced to 176 million rubles, which is 32.7% down over the same period of 2013.

Non-current assets of Transaero Airlines have increased by 6.2 billion rubles and reached 51.4 billion rubles, including fixed assets growth by 1.7 billion rubles.

The company's long-term liabilities increased while the short-term liabilities remained at the same level. This is in line with the implementation of the decision of Transaero's Board of Directors on the significant increase in the long-term/short-term borrowings ratio.

It is worth noting that the positive factors to support the expectations for the second half of 2014 include efficient management policy, extensive opportunities of flexible management of passenger capacities in different market segments, as well as the company's ongoing implementation of the Cost Reduction Programme.

It is worth acknowledging that Transaero has been successfully implementing its five-year development programme “Rational growth, efficiency and strategic focus” adopted by the airline in October 2013.