IFRS Net Loss Of Russia's Aeroflot Grew By 6.6 Times To $786Mln In 1st Half Of 2020

The International Financial Reporting Standards (IFRS) net loss of Russia’s biggest airline, Aeroflot, increased by 6.6 times, totaling 58.27 billion rubles ($786 million) in the first half of 2020 in light of air traffic restrictions caused by the coronavirus pandemic, the company said

MOSCOW (UrduPoint News / Sputnik – 31st August, 2020) The International Financial Reporting Standards (IFRS) net loss of Russia‘s biggest airline, Aeroflot, increased by 6.6 times, totaling 58.27 billion rubles ($786 million) in the first half of 2020 in light of air traffic restrictions caused by the coronavirus pandemic, the company said.

Meanwhile, the airline’s revenue decreased by 52 percent in the first half of 2020 year-on-year, totaling 149.35 billion rubles. Aeroflot’s earnings before interest, taxes, depreciation and amortization decreased by 6.2 times to 11,092 billion rubles.

“In the second quarter of 2020, and above all in April and May, most of Aeroflot Group’s fleet was grounded following COVID-related restrictions, while the aircraft that continued flying operated with significantly reduced flight hours.

The Group’s extensive route network was significantly reduced, and we only operated flights essential to maintaining transport accessibility in the Russian regions and to supply much-needed medical equipment and medicine,” Aeroflot Deputy CEO Andrey Chikhanchin said, as quoted in the statement.

Russian Prime Minister told Aeroflot CEO Vitaly Savelyev that the company would be granted 70 billion rubles in state loan guarantees to overcome the financial burden of the coronavirus pandemic and relevant air travel restrictions.

Russia has started to gradually resume air traffic, which was suspended due to the pandemic in March, with a number of foreign states on August 1. Flights are currently being operated to the United Kingdom, Turkey, Tanzania and Switzerland.

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