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Aeroflot Fate – dicy?

Russian Flagship carrier – Aeroflot has reported a net loss of approximately $356 million in the second quarter compared to a profit of RB2.73 billion last year.  Although Aeroflot has reported a gradual recovery in domestic flights, the fate of the passenger refunds in India is still unknown. Aeroflot has not even approved a single case of passenger refund and have only emphasized on future travel voucher or emd since the cessation of normal refunds through BSP. 

According to Insider source, a senior Travel Agent quoted – what can you expect from foreign Airlines when your own national carrier has held up refunds and forced travelers to use future travel vouchers. We understand that every industry is suffering but we expect our own to support us.  

Aeroflot plans to continue strict cost-optimization measures which is essential in these pandemic times but it is also trying to preserve jobs and the company’s business, noting its constant dialogue with partners to improve terms and conditions.

Aeroflot released a 6-month report for Q1 and Q2 on 29, July explaining key factors of fall and rise in revenue.

Key results in accordance with RAS, RUB million

  Q2 2019 Q2 2020 Change 6M 2019 6M 2020 Change
Revenue 138,837 20,837 (85.0%) 252,863 121,704 (51.9%)
Cost of sales 136,316 54,312 (60.2%) 269,355 177,576 (34.1%)
Gross income/(loss) 2,521 (33,474) (16,492) (55,872) +3.4х
Net income/(loss) 2,730 (26,156) (14,120) (42,294) +3.0х

Depending on fall of passenger turnover which reduced by 92% for Q2 ending in June 2020 due to a near-total cessation of international flights and also a major reduction in domestic flights due to Covid-19 related travel restrictions in certain regions of Russia, management decreased cost of sales by 60% and in accordance with Q2 revenue which was down by 85%.

Read the full report here

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