PJSC Aeroflot (Moscow Exchange ticker: AFLT) announced the operating results for September 2020, the third quarter and nine months of 2020.
Aeroflot Group's September 2020 key highlights are as follows: Aeroflot Group carried 3.4 million passengers, passenger load factor was 83.5%; 3.1 million passengers were carried in domestic segment which is comparable to September 2019 result; dynamics of the Group's airlines' operating indicators further improved in the domestic market. Pobeda Airlines carried 1.1 million passengers domestically, a year-on-year increase of 17.8%.
Q3 2020 key highlights are as follows: Aeroflot Group carried 10.1 million passengers; passenger load factor was 83.0%;
9.5 million passengers were carried in domestic segment, just 7.3% lower year-on-year, while matching the levels of domestic passenger traffic of 2019 in August and September 2020.
In Q3 2020, the group's airlines further improved operating indicators dynamics in domestic segment. An important contribution was made by Pobeda Airlines, which carried 3.4 million passengers, a year-on-year increase of 12.0%.
"The operating results for September and Q3 2020 demonstrate Aeroflot Group's resilience and the significant potential for a rebound in the Russian market. According to IATA, the Russian domestic passenger aviation market is the only major market globally where volumes fully recovered on a year-on-year basis; Russian domestic travel recovered much faster than other markets, including the rapidly recovering Chinese domestic market, which is still 20% below comparable indicators for the same period in 2019, while globally there has been a 50% decrease in domestic volumes," Andrey Chikhanchin, PJSC Aeroflot Deputy CEO for Commerce and Finance, commented.
According to Andrey Chikhanchin, Aeroflot Group carried 9.5 million passengers on domestic routes in the third quarter of 2020. Moreover, in August and September domestic passenger numbers were at comparable levels to August and September 2019. In addition to passenger numbers, the group also saw improvement in load factors on domestic routes, which stood at around 87% in August and September – a significant recovery compared with around 52% in Q2 2020.
"We are pleased to see that Russians are ready to travel, and that, given the suspension of international flights, passengers continue to fly and choose to take their holidays in Russia. We have seen elevated demand not only for resort destinations along the Black Sea coast, but also for nature and culture destinations including the northern Caucasus, Lake Baikal, Altai mountains, the Russian Far East and cities in Northwest Russia (Kaliningrad, Murmansk and St. Petersburg)," Andrey Chikhanchin said.
Pobeda was virtually the only major carrier anywhere in the world that recorded growth in passenger numbers in Q3 2020, with traffic up by 12.0% year-on-year. In September Pobeda's passenger numbers grew by a total of 17.8% year-on-year, while total domestic traffic rose by 41.4% year-on-year. In addition to passenger numbers, Pobeda achieved a high load factor of 95%. These results once again confirm Aeroflot's strategic focus on continuing to grow the low-cost segment.
As individual international routes open up, Aeroflot sees a rapid recovery of passenger numbers to 2019 levels. For example, in September 2020 passenger numbers on routes to Turkey significantly exceeded the comparable result for last year; moreover, to meet high demand the company launched new flights to Bodrum and Dalaman in addition to its regular scheduled flights to Istanbul and Antalya. Aeroflot also sees active forward bookings, including those for the New Year holiday season, with Dubai and Malé proving particularly popular.
"Restrictions on international flights are undoubtedly continuing to put pressure on airlines around the world. However, based on the operational results of Aeroflot Group and the Russian market as a whole, we look forward with confidence to the recovery of the Russian aviation sector as restrictions are lifted," Andrey Chikhanchin condlude.
In September 2020, Aeroflot Group carried 3.4 million passengers, a year-on-year decrease of 39.9%. RPK were down 51.2% year-on-year, ASK decreased by 50.3%. Passenger load factor was 83.5%.
On domestic routes, airlines of the Group continued to record strong operating results in September 2020 carrying a total of 3.1 million passengers, a marginal year-on-year decrease of 1.4%. Pobeda Airlines transported 1.1 million passengers, a 41.4% improvement year-on-year. Rossiya Airlines carried 775.5 thousand passengers, a year-on-year increase of 12.1%. Aeroflot Airlines in September 2020 transported 1.1 million passengers, a year-on-year decline of 26.9%, which is primarily explained by lower transfer traffic between domestic and international points of service. Aurora Airlines carried 79.8 thousand passengers, a year-on-year decline of 28.7%.
In 9M 2020, Aeroflot Group carried 23.1 million passengers, 50.7% down year-on-year. Group RPK decreased by 55.3% year-on-year, ASK decreased by 49.6% year-on-year. Passenger load factor was 73.3%.
In 9M and September 2020, operating results were affected by the dynamics of demand and significant flight restrictions imposed amid the spread of the novel coronavirus infection. Suspension of scheduled international flights and quarantine restrictions in Russia in the Q2 affected the decline in traffic indicators.
In September 2020 Aeroflot Group's domestic traffic volumes continued to recover, also the restoration of international flights has begun. In September 2020, in addition to flights to Turkey, the United Kingdom and Switzerland, due to regulatory approval, flights to Cairo (Egypt), Dubai (UAE), Male (Maldives), Nursultan (Kazakhstan), Bishkek (Kyrgyzstan), Minsk (Belarus) were added with limited frequency. Since October, flights to Seoul (South Korea) have also been resumed with limited frequency, the statement notes.
In September 2020, Aeroflot Airlines phased out one Airbus A320 aircraft. As of 30 September 2020, Group fleet had 357 aircraft.
Please note that this press release is based on materials provided by the company. AK&M Information Agency shall not be held liable for its contents, nor for the legal and other consequences of its publication.
