Aeroflot Reports Fourth Quarter Net Loss of $291 Million, Full Year 2021 Net Loss of $597 Million
Aeroflot has reported a fourth quarter net loss of RUB 22.2 billion on a year-over-year increase in revenue of 94.3 percent to RUB 102.6 billion. For the full year 2021, the airline reported a net loss of RUB 45.6 billion on a 65 percent revenue increase to RUB 378.7 billion.
On Wednesday (February 2, 2022), PJSC Aeroflot reported their fourth quarter and full year 2021 financial results for the period ending December 31, 2021, in accordance with Russian Accounting Standards (RAS). The carrier reported a fourth quarter net loss of RUB 22.2 billion ($291 million) on a 94.3 percent increase in revenue versus Q4 2020 to RUB 102.6 billion (US $1.35 billion). For the full year 2021, Aeroflot reported a net loss of RUB 45.6 billion (US $598.9 million) on a year-over-year increase in revenue of 64.8 percent to RUB 378.7 billion (US $4.97 billion).
In Wednesday’s announcement, PJSC Aeroflot’s Deputy CEO for Commerce and Finance, Andrey Chikhanchin, said,
“Despite the challenges related to the pandemic, Aeroflot was able to deliver improved results in 2021, with revenue rebounding and a significant reduction in the loss for the year. The Company has steadily improved its results year-on-year since the second quarter of 2021, leading to a reduction by more than half in the net loss for the full year.
“A significant driver of the improved financial result for 2021 was demand and the growth that it drove in domestic flight volumes, which the company focused on starting from the high season. For the full year 2021, Aeroflot Group passenger numbers on the domestic market were 15.3% higher than in 2019. The gradual relaxation of restrictions in the international segment also had a positive impact on results, with capacity on these routes rising from 16% of pre-pandemic levels in January to 49% in December.”
Aeroflot is the flag carrier of Russia and a proud member of the global SkyTeam® alliance. During 2020, Aeroflot carried 14.6 million guests and when the Aeroflot Group subsidiaries are included, the total rises to 30.2 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. In 2021, Brand Finance, a leading brand strategy consultancy, declared Aeroflot the strongest brand in Russia, as well as the “world’s strongest airline brand.” According to Bain and Company research, Aeroflot ranks fourth in the airline industry for digitalization.