Aeroflot Group Passenger Traffic Up 13.3% in 8M 2015

Aeroflot PJSC (Moscow Exchange ticker: AFLT) announces operating results for Aeroflot Group («the Group») and Aeroflot — Russian Airlines («the Company») for August and the first eight months of 2015.

January- August 2015 Operating Highlights
Passenger traffic for Aeroflot Group in 8M 2015 was 26.3 mln, up 13.3% year-on-year. Aeroflot airline’s passenger traffic was 17.3 mln during the same period, up 10.2% year-on-year.

Group revenue passenger kilometres («RPKs») rose by 7.9% year-on-year for 8M 2015, while the Company posted 10.1% year-on-year RPK growth. Group available seat kilometres («ASKs») increased by 7.9% year-on-year for 8M 2015, while the Company’s ASKs increased by 9.1% year-on-year. Group passenger load factor increased 0.1 percentage point (p.p.) year-on-year to 79.0%, while the Company’s passenger load factor increased by 0.7 p.p. year-on-year to 79.9%.

August 2015 Operating Highlights
In August 2015, Aeroflot Group passenger traffic was 4.3 mln, up 13.0% year-on-year. Aeroflot airline’s passenger traffic was 2.7 mln, a year-on-year increase of 12.0%.

Group and Company RPKs increased by 6.8% and 10.8% year-on-year, respectively. ASKs for the same period rose by 6.0% year-on-year for Aeroflot Group and by 9.4% for Aeroflot airline.

On domestic routes, Group traffic and RPKs grew by 34.1% and 29.7% year-on-year, respectively, in August 2015. This was mainly attributable to increased demand for domestic flights, growth of in-country tourism, a rise in low-cost travel, combined with a 32.6% year-on-year increase in ASKs, including increased flight frequencies on high-demand routes. Company traffic and RPKs in August 2015 were up 12.6% and 12.5% year-on-year, respectively, driven by increased demand for domestic flights and a corresponding increase in ASKs of 14.4%.

On international routes, Group traffic and RPKs were down by 9.2% and 8.6% year-on-year, respectively, in August 2015. This decline was attributable to a 11.0% year-on-year decrease in ASKs on international routes, as the Group continued to optimise capacities in its subsidiaries (mainly in the charter flights segment) and reallocate capacity to domestic routes. Aeroflot airline’s traffic and RPKs on international routes increased by 11.5% and 9.7% year-on-year, respectively, in August 2015. The Company’s growth on international routes was supported by a decline in competition as several foreign carriers reduced flight frequencies to Russia, as well as by increased international transit traffic through Sheremetyevo airport.

In August 2015, the passenger load factor increased by 0.7 p.p. year-on-year to 87.4% for the Group and increased by 1.2 p.p. year-on-year to 87.9% for the Company.

Fleet Update
During 8M 2015, Aeroflot airline added six Boeing 737-800s, four SSJ100s and three Boeing 777-300ERs. During the same period, five IL-96 aircraft left the fleet. The net increase in the Company’s fleet amounted to eight aircraft.

During 8M 2015, the Group added 10 Boeing 737-800s, one Airbus A319, four SSJ100s and three Boeing 777-300ERs. Nine Boeing 737-800s, one Airbus A320 and five Il-96s were removed from the Aeroflot Group fleet. The net increase in the Group’s fleet amounted to three aircraft. As of 31 August 2015, the Group’s fleet included 260 aircraft.