ATW Daily News

Aeroflot forecasts brighter 2009

Tuesday January 6, 2009

Aeroflot said it plans to post a profit of RUB9.3 billion ($316 million) this year, which would be "higher than the expected level of 2008," as it moves forward with a plan and budget "taking into account the anti-crisis-management program aimed at increasing the efficiency of the operational and commercial activity."

The company, which has suffered along with its competitors during the recent downturn in the Russian commercial aviation industry (ATWOnline, Dec. 15, 2008) and has been the subject of speculation regarding its or an investor's interest in S7 Airlines (ATWOnline, Dec. 16, 2008), was some $72.2 million in the black through the first half of 2008 (ATWOnline, Oct. 15, 2008).

SU's board announced that it expected 2009 revenue to increase 19% over 2008 while expenses rise 16%. The carrier intends to add 24 new aircraft to its fleet this year, including six A330s, allowing it to save 100,000 tons of fuel compared to older aircraft being replaced and to increase flight hr. by 3.5%. Passenger boardings are expected to reach 9.5 million.

The airline also said that expected opening of the new Terminal 3 at Moscow Sheremetyevo, which SU will share with its SkyTeam partners, will attract "additional transit passengers." The new facility and new aircraft will necessitate a 5.6% year-over-year increase in employees, although it said that the number of "administrative and management personnel is to be reduced."

by Brian Straus

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