• Joe Breitfeller

Aeroflot Announces Fourth Quarter Net Loss of $410 Million and Full Year 2020 Loss of $1.3 Billion

The carrier announced a fourth quarter net loss of RUB 30,972 M (US $410 million) on a 59% revenue decline to RUB 52,816 M (US $699 million). For the full year 2020, Aeroflot reported a net loss of RUB 96,527 M (US $1.3 billion) on a 58% revenue decline to RUB 230,000 M.


Aeroflot Airbus A350-900 - Courtesy Airbus

On Thursday (February 4, 2021), PJSC Aeroflot announced their fourth quarter and full year 2020 financial results. The airline reported a fourth quarter net loss of RUB 30,972 million (US $410 million) on a 59 percent year-over-year revenue decline to RUB 52,816 million (US $699 million). For the full year 2020, Aeroflot reported a net loss of RUB 96,527 million (US $1.3 billion) on a revenue decline of 58 percent versus 2019 to RUB 230,000 million (US $3.0 billion). The fourth quarter revenue decline of 59 percent was an improvement over a Q3 revenue decline of 67 percent and a year-over-year revenue decline of 85 percent during Q2. The carrier also reported a 78 percent increase in Q4 cargo revenue compared to the fourth quarter of 2019.


Fourth quarter seasonal demand was impacted by a second wave of the global COVID-19 pandemic, but a gradual restoration of international flights and domestic capacity management allowed the airline to avoid excess capacity and unnecessary costs. Quarter-on-quarter, the number of international flights increased 94 percent, while domestic flights decreased 16 percent compared to the third quarter. Aeroflot’s full year costs declined 39 percent to RUB 331,734 million (US $4.4 billion), though they were impacted by an average negative increase in exchange rate of the US dollar to RUB of 11.5%, and a euro to RUB exchange rate increase of 13.8%, compared to 2019. The cost of the unfavorable exchange rates amounted to RUB 14.9 billion (US $197.3 million).


Aeroflot Reports Fourth Quarter and Full Year 2020 Financial Results - Courtesy Aeroflot

Variable costs were substantially reduced due to diligent capacity management as well a year-over-year decrease in aviation fuel costs of around 65 percent. Aeroflot also reported a 55 percent reduction in airport services expenses and a 65 percent reduction in catering costs compared to 2019. The company also reported a 32.7% reduction in selling, general and administrative expenses (SG&A), including management compensation, general business expenses, consulting and marketing expenses, as well as booking system costs.


Aeroflot is the flag carrier of Russia and a proud member of the global SkyTeam® alliance. During 2019, Aeroflot carried 37.2 million guests and when the Aeroflot Group subsidiaries are included, the total rises to 60.7 million passengers. The airline holds a 4-Star rating from Skytrax World Airline Awards and has been awarded a five-star global airline rating by APEX. According to Cirium’s On-Time Performance Review, Aeroflot was the world’s most on-time mainline airline for 2019. The carrier has also received a five-star rating from OAG for flight punctuality. Brand Finance, a leading brand strategy consultancy, has declared Aeroflot the “world’s strongest airline brand.”



Source: Aeroflot