OREANDA-NEWS. Leading global aviation analysis agency Centre for Aviation (CAPA) has published a report on Aeroflot Group. As the report points out, the Group has achieved outstanding results, exemplified by its performance in 2016, thanks to its strategic transformation.

Aeroflot's transition to a multi-brand platform covering all market segments has supported strong growth in the scale of the Group's operations, the study says. From 2009 to 2016 the Group's annual passenger traffic increased almost four times, while passenger load factor increased by 11.3 p.p., and its revenue grew by nearly fivefold.

Experts agree that Aeroflot's growth in 2016 “bucked the falling trend in the Russian market overall”, where total passenger traffic fell by 4.1% in 2016.

Aeroflot Group's 43.4 million passengers put it in seventh place among European airline groups by passengers traffic in 2016, the Centre reports.

In 2016 Aeroflot Group achieved its best net profit and operating profit since the start of the current decade. Operating margin, which reached 12.8%, was higher than for other leading European airline groups with similar business models. Aeroflot Group's operating margin was just ahead of IAG’s (comprising British Airways and Iberia) 11.2% operating margin, and comfortably above Air France-KLM's 4.2% margin.

“Aeroflot's period of rising traffic, revenue and profitability has come at a time of great economic stress for Russia”, the study highlights. The Group has successfully weathered a “severe economic storm”.

Aeroflot benefits from its structural advantages and well-designed strategy, according to the CAPA analysts, who go on to express confidence that Aeroflot Group will continue its strong growth to achieve its strategic goals.