OREANDA-NEWS. Transaero Airlines has published its financial statement for the first six months of 2014 under International Financial Reporting Standards.

The results highlight that in the challenging conditions the airline delivered passenger traffic growth and significantly improved its financial performance while implementing its development strategy "Rational growth, efficiency and strategic focus" adopted in October 2013.

The statement shows the following positive trends in the airline's development:

Revenue growth rate grew by 6.79%:

Revenue from air operations and other services reached 48,602,491 thousand rubles, a 6.79% increase over six months of 2013. The company's passenger traffic was 5.752 million people, a 4.8% growth over the same period of 2013.

Revenue grew in key markets such as Russia and CIS (+19%), Asia, including South East Asia (+16.25%), Europe and Middle East (+13.3%).

Revenue from cargo transportation increased by 20% and reached 2,033,577 thousand rubles.

There was significant improvement in financial efficiency of the airline's operations, including:

Growth of operating profit and net profit

Operating profit reached 6,571,670 thousand rubles, a 58.6% increase against the same period of the previous year. Profit before tax increased by 41% and was recorded to be 864,313 thousand rubles.

The airline's net profit amounted to 750,471 thousand rubles, a 61% growth. The amount of net profit for the first six months of 2014 is nearly the same as net profit for twelve months of 2013.

Taking into account net profit for the reporting period, the airline for the first time has recovered the retained loss of the past years

Due to the weakening of the ruble, the company faced exchange rate losses and increased interest payments due to loans in foreign currencies, as well as increased staff costs due to extension of paid flight crew leave introduced by new legislation. Profit growth was the result of the airline's consistent focus on the most cost-efficient routes, increase of revenue from cargo transportations and implementation of its cost reduction programme.

Growth of EBITDA, EBITDAR profitability ratios

EBITDA amounted to 8.225 billion rubles (+16.57%), while EBITDA margin grew 1, 42 percentage points to 16.92% EBITDAR increased to 9.978 billion rubles (+17.33%), while EBITDAR margin grew 1,84 percentage points to 20.53%

Cash flow from operating activities reached 5,764,644 thousand rubles (+5.4%).

The company recorded the positive cash flow from investing activities 378,680 thousand rubles against the negative result of 1.9 billion rubles in 2013.

Debt structure improvement

The proportion of long-term and short-term credits and loans continued to improve. The amount of long-term credits and loans reached 67% including financial leases and 61 % excluding financial leases.

Transaero Airlines CEO Olga Pleshakova said: "The results were achieved in an extremely challenging environment. However, the company had prepared for this. After a long period of dynamic growth the company took into account the economic headwinds. In 2012 the company adopted its cost reduction programme and in 2013 it approved a new development strategy “Rational growth, efficiency and strategic focus".

“These positive results prove that the airline's strategy was correct. Credit can be given to the Russian state authorities for supporting the aviation industry on the decision on duties within the Customs Union (Russia, Belarus and Kazakhstan), introduction of non-refundable air fares, changes to luggage allowance and the approval to employ foreign pilots for Russian airlines. Transaero will continue to work in accordance with our chosen strategy and plans. Our priorities will remain to improve efficiency, reduce costs and enhance products the products we offer.”