OREANDA-NEWS. JSC Aeroflot (“the Company”, Moscow Exchange ticker: AFLT) announces operating results of the Company and Aeroflot Group (“the Group”) for July 2014 and the first seven months (7M) of 2014.

Highlights

Aeroflot standalone:

Passenger traffic in July 2014 totalled 2.35 mln, an 11.8% year-on-year increase, as demand continued to increase on domestic routes. Passenger traffic on domestic routes increased by 32.6% year-on-year in July, driven in part by increased flight frequency on high-demand routes and capacity additions. International traffic declined 3.0% year-on-year in July 2014, primarily due to the Сompany ceasing to carry passengers under block charter agreements (the least profitable passenger segment) and corresponding optimisation of carrying capacities on international tourist routes. Lower frequency of flights to Kiev and Odessa and the suspension of flights on Donetsk and Kharkov routes as well as reclassification of flights to Simferopol as domestic were among other factors impacting international traffic.

For 7M 2014, passenger traffic totalled 13.31 mln, a 14.3% year-on-year increase.

Revenue passenger kilometres (“RPK”) for July 2014 totalled 6.67 bln, a year-on-year increase of 12.7%. RPKs for domestic and international flights were up 28.2% and 4.5% year-on-year respectively. For 7M 2014, the Company's RPKs increased 12.3% year-on-year to 37.84 bln.

In the first seven months of 2014 the Company expanded its fleet, including 13 new Airbus A320s, two new Boeing 737-800 and six new Boeing 777-300ERs. The new factory-direct planes contributed to the ongoing modernisation of the fleet, which is now one of the youngest in Europe. In 7M 2014 three Boeing 767-300ER aircraft exited the Aeroflot fleet upon expiry of their leases and five Airbus A320 family aircraft were transferred to subsidiary airlines. Changes to the Company's fleet structure contributed to an increase in available seat kilometres (“ASK”) by 9.7% year-on-year in July 2014 and 12.5% year-on-year in 7M 2014.

The passenger load factor increased 2.2 percentage points year-on-year in July 2014 to 85.9%. On domestic flights the passenger load factor was 90.7%, and 83.1% on international routes. For 7M 2014, the passenger load factor was 78.0%, representing a 0.2 percentage point year-on-year decrease.

Flight hours of the Company's fleet for July 2014 and 7M 2014 increased by 6.4% and 8.8% year-on-year, respectively.

Aeroflot Group:

Total passenger traffic for July 2014 increased 11.9% year-on-year to 3.80 mln. The main factor driving passenger traffic growth was a 25.9% increase in domestic traffic. International traffic for July 2014 was up 0.5% year-on-year.

Passenger traffic for 7M 2014 increased 11.0% year-on-year to 19.46 mln.

July 2014 RPKs increased 9.6% year-on-year to 9.76 bln, with RPKs on domestic and international flights up 18.7% and 4.3% year-on-year, respectively. Aeroflot Group's RPK for 7M 2014 increased 5.2% to 50.69 bln.

The passenger load factor for July 2014 increased 2.5 percentage points year-on-year to 86.6%. On domestic routes the load factor was 90.7%, and 84.1% on international routes. The load factor was 77.6% in 7M 2014, unchanged year-on-year.

Dobrolet:

Passenger traffic for Dobrolet in July 2014 was 43.38 thousand with RPKs of 53.71 mln and ASKs of 57.56 mln. Passenger load factor was 93.3% and revenue load factor was 88.2%. Flight hours of Dobrolet's fleet were 539 hours for July 2014.

On 4 August 2014 company suspended flights as a result of the sanctions imposed on Dobrolet LLC by the EU.

Other events:

In 2013 JSC Aeroflot discontinued its dedicated cargo fleet, switching to belly cargo operations. This was the main reason that cargo and mail carried decreased 23.0% year-on-year in July 2014.

The tables below provide key operating results for JSC Aeroflot and Aeroflot Group.