Operating Highlights

Item	2014	2015	2016	2017	2018
Passenger traffic, million PAX	34.7	39.4	43.4	50.1	55.7
change, %	10.7	13.4	10.3	15.4	11.1
Passenger turnover, billion RPK	90.1	97.6	112.1	130.2	143.2
change, %	5.6	8.4	14.8	16.2	9.9
Available seat-kilometres, billion ASK	115.8	124.7	137.7	157.2	173.1
change, %	6.2	7.7	10.4	14.2	10.1
Passenger load factor, %	77.8	78.3	81.4	82.8	82.7
change, p.p.	(0.4)	0.5	3.1	1.4	(0.1)
Cargo and mail, thousand tonnes	166.3	156.3	205.8	273.4	303.9
change, %	(18.7)	(6.0)	31.6	32.8	11.2
Revenue tonne-kilometres, billion TKM	8.8	9.5	11.0	13.0	14.2
change, %	1.9	7.0	16.5	17.7	9.5
Flights, thousand	286.7	323.8	331.9	368.5	411.5
change, %	8.2	13.0	2.5	11.0	11.7
Stage length, km	2,593	2,479	2,581	2,598	2,570
change, %	(4.5)	(4.4)	4.1	0.7	(1.1)

Item	2014	2015	2016	2017	2018
Passenger traffic, million PAX	17.6	23.4	25.1	27.6	31.0
change, %	26.0	32.5	7.6	9.7	12.3
Passenger turnover, billion RPK	35.0	44.7	48.7	53.2	59.9
change, %	19.9	27.8	8.9	9.3	12.6
Available seat-kilometres, billion ASK	43.6	56.3	58.3	63.8	70.2
change, %	16.2	29.0	3.7	9.4	10.1
Passenger load factor, %	80.2	79.4	83.5	83.4	85.3
change, p.p.	2.5	(0.8)	4.1	(0.1)	1.9
Cargo and mail, thousand tonnes	82.0	79.1	107.8	120.0	132.7
change, %	(0.9)	(3.4)	36.2	11.3	10.6
Revenue tonne-kilometres, billion TKM	3.5	4.3	4.8	5.3	5.9
change, %	17.4	24.5	11.9	8.9	11.9
Flights, thousand	151.0	195.0	196.0	215.0	238.0
change, %	18.2	29.2	0.5	9.7	10.7
Stage length, km	1,982	1,912	1,935	1,929	1,934
change, %	(4.8)	(3.5)	1.2	(0.4)	0.3

Item	2014	2015	2016	2017	2018
Passenger traffic, million PAX	17.1	16.0	18.3	22.5	24.7
change, %	(1.7)	(6.2)	14.1	23.3	9.7
Passenger turnover, billion RPK	55.1	52.9	63.4	77.0	83.2
change, %	(1.8)	(3.9)	19.8	21.4	8.1
Available seat-kilometres, billion ASK	72.2	68.5	79.4	93.4	102.8
change, %	1.0	(5.2)	15.8	17.8	10.1
Passenger load factor, %	76.3	77.3	80.0	82.5	80.9
change, p.p.	(2.1)	1.0	2.7	2.5	(1.5)
Cargo and mail, thousand tonnes	84.3	77.2	98.0	153.3	171.1
change, %	(30.8)	(8.5)	27.0	56.5	11.6
Revenue tonne-kilometres, billion TKM	5.3	5.2	6.2	7.7	8.3
change, %	(6.1)	(4.3)	20.3	24.5	7.9
Flights, thousand	135.7	128.8	135.9	153.4	173.4
change, %	(1.0)	(5.1)	5.5	12.9	13.0
Stage length, km	3,223	3,304	3,468	3,416	3,366
change, %	(0.1)	2.5	5.0	(1.5)	(1.5)

Aeroflot Group

Aeroflot Group carried a total of 55.7 million passengers in 2018, up 11.1% year-on-year, making a total 411,500 flights, or over 1,100 flights per day on average. The Group’s capacity grew by 10.1% to 173.1 billion ASK, with the passenger turnover growing by 9.9% to 143.2 billion RPK and the passenger load factor staying almost flat year-on-year at 82.7%, down 0.1 p. p.

Domestic flights

Aeroflot Group’s airlines carried 31.0 million passengers on domestic routes in 2018, up 12.3% year-on-year, with the capacity growing by 10.1% to 70.2 billion ASK and the passenger turnover reaching 59.9 billion RPK, up by 12.6%. The passenger load factor was 85.3%, up 1.9 p. p. year-on-year.

The accelerated growth in domestic passenger traffic pushed the share of domestic flights in total passengers carried to 55.6%, up 0.6 p. p. year-on-year. In terms of passenger turnover, domestic flights account for 41.8% of the Group’s total due to a lower stage length.

The positive trend in operational performance was driven by a continued increase in demand for domestic flights supported by the Group’s route network expansion – new destinations and increased frequencies of flights to the most popular destinations. The development of the low-cost carrier Pobeda which accounted for half of the increase in the Group’s domestic passenger traffic also played a major role. Our stronger performance in the summer was also due to the World Cup held across eleven Russian cities, which led to an accelerated growth and higher passenger loads during the days of the event.

Region	Passenger traffic, million PAX			Passenger turnover, billion RPK			Available seat-kilometres, billion ASK			Passenger load factor, %
	2017	2018	change, %	2017	2018	change, %	2017	2018	change, %	2017	2018	change, p.p.
Russia	26.7	30.2	13.2	51.4	58.4	13.7	61.9	68.6	10.9	83.0	85.1	2.1
Europe	10.5	12.0	13.6	23.8	27.3	14.5	30.5	36.0	18.0	77.9	75.7	(2.3)
Asia	3.4	3.6	4.7	21.9	23.0	4.7	26.6	28.1	5.8	82.5	81.6	(0.9)
CIS	2.8	3.0	6.0	6.2	6.5	4.0	7.4	7.7	4.1	84.1	84.0	(0.1)
Middle East	1.9	2.1	9.6	5.7	6.3	10.2	7.1	8.1	14.0	80.4	77.7	(2.7)
Americas	1.0	1.0	1.8	8.6	8.7	1.6	10.4	10.7	2.6	82.6	81.8	(0.8)
Total scheduled flights	46.4	51.9	11.8	117.7	130.2	10.6	144.0	159.3	10.7	81.7	81.7	–
Charter flights	3.7	3.8	2.4	12.5	13.0	3.5	13.3	13.8	4.0	94.6	94.1	(0.5)
Total flights	50.1	55.7	11.1	130.2	143.2	9.9	157.2	173.1	10.1	82.8	82.7	(0.1)

International flights

Increased capacity, new flights, the expansion of charter programme, and higher transfer traffic between Europe and Asia backed by the stable demand pushed the Group’s international traffic up 9.7% year-on-year to 24.7 million passengers. The capacity grew by 10.1% to 102.8 billion ASK with the passenger turnover going up by 8.1% to 83.2 billion RPK and the passenger load factor for international destinations going down by 1.5 p. p. year-on-year to 80.9%.

The changing competitive environment, in particular, the return of foreign carriers to the Russian market, also influenced Aeroflot’s operational performance. While their market share remained flat, the capacity and, accordingly, passenger traffic were up.

In 2018, the strongest growth in scheduled passenger traffic was on European routes due to the launch of flights to new destinations: popular resorts (Verona, Naples, Burgas), business travel destinations (Dublin and Gothenburg), as well as the increased frequencies of flights to best-selling, including among international travellers, destinations (such as Barcelona, Belgrade, Brussels, Lyon, Sofia, Stuttgart, and Tenerife).

The World Cup bolstered the Group’s operational performance across international and domestic routes in the summer, with European destinations accounting for the bulk of the passenger traffic.

Aeroflot airline

In 2018, Aeroflot airline carried a total of 35.8 million passengers, up 8.9% year-on-year, making 273,177 flights.

The airline’s passenger turnover grew 6.7% to 98.0 billion RPK, backed by a 8.4% capacity growth to 121.7 billion ASK. The passenger load factor declined by 1.3 p. p. to 80.5%.

In 2018, the total number of passengers carried by Aeroflot airline on domestic routes increased by 11.8% year-on-year to 17.5 million. The passenger turnover grew 8.9% to 33.9 billion RPK, with the capacity up by 8.8% to 40.2 billion ASK. The passenger load factor increased by 0.1 p. p. to 84.4%. Domestic flights accounted for 49.1% of Aeroflot airline’s total passenger traffic.

The total number of passengers carried by Aeroflot airline on international routes increased by 6.2% year-on-year in 2018 to 18.2 million. The passenger turnover grew 5.6% to 64.0 billion RPK, with the capacity up by 8.2% to 81.5 billion ASK. The passenger load factor decreased by 2.0 p. p. to 78.6%. International flights accounted for 50.9% of Aeroflot airline’s total passenger traffic.

As in prior years, Aeroflot airline’s charter operations continue to target athletic teams and official delegations, with 735 charter flights made in 2018.

Aeroflot airline implemented a number of high-impact initiatives in 2018 to improve its on-time performance, including through strict enforcement of the boarding rules and baggage requirements.

In 2018, Aeroflot airline’s on-time performance was at 82.98%, one of the best scores globally, and the carrier was ranked 5th most punctual airline globally and 2nd in Europe according to the UK’s leading aviation publication FlightGlobal.

Region	Passenger traffic, million PAX			Passenger turnover, billion RPK			Available seat-kilometres, billion ASK			Passenger load factor, %
	2017	2018	change, %	2017	2018	change, %	2017	2018	change, %	2017	2018	change, p.p.
Russia	15.7	17.5	11.8	31.1	33.9	8.9	36.9	40.1	8.7	84.4	84.5	0.1
Europe	8.9	9.5	6.6	20.1	21.7	7.6	26.2	29.5	12.7	76.9	73.4	(3.5)
Asia	3.1	3.2	3.8	21.4	22.1	3.5	25.8	26.9	4.0	82.8	82.4	(0.4)
CIS	2.5	2.6	5.6	5.4	5.7	6.1	6.4	6.9	7.0	83.9	83.2	(0.7)
Middle East	1.7	1.9	11.7	5.1	5.8	12.3	6.4	7.4	16.5	80.3	77.4	(2.9)
Americas	1.0	1.0	1.8	8.6	8.7	1.6	10.4	10.7	2.6	82.6	81.8	(0.8)
Total scheduled flights	32.8	35.7	8.8	91.8	97.9	6.7	112.2	121.5	8.3	81.8	80.6	(1.2)
Charter flights	0.01	0.02	96.8	0.03	0.04	68.3	0.09	0.17	96.7	30.3	26.0	(4.4)
Total flights	32.8	35.8	8.9	91.8	98.0	6.7	112.2	121.7	8.4	81.8	80.5	(1.3)

Rossiya airline

In 2018, Rossiya airline, the Group’s second largest company, carried 11.1 million passengers, similar to the prior year. Pulkovo airport in Saint Petersburg accounted for most of the passenger traffic – 5.5 million passengers. Rossiya’s most popular destinations operated from Saint Petersburg were Moscow (Vnukovo airport) and Russia’s Black Sea resorts. The demand for charter flights remained stable, with the carrier slightly increasing its passenger traffic in the segment in 2018 through effective cooperation with Biblio Globus tour operator. Overall, the share of charter operations in Rossiya airline’s total passenger traffic is stable at over one third of the total.

Pobeda airline

In 2018, Pobeda’s passenger traffic increased by 56.8% year-on-year to 7.2 million passengers. Eight new Boeing 737-800 aircraft were added to the carrier’s fleet, expanding it from sixteen aircraft in early 2018 to twenty-four by 2018 year-end and becoming the primary driver of a 65.4% increase in capacity in 2018. The passenger load factor remained high at 94.1%, down 0.1 p. p. year-on-year, while Pobeda’s on-time performance stood at 92.8%.

Aurora airline

Aurora airline continued to expand into the Far East and increase the mobility of the population in the region. In 2018, the airline carried 1.6 million passengers, up 4.8% year-on-year. Traffic on local flights to remote destinations was also growing quite rapidly.

Cargo and mail operations

In 2018, Aeroflot Group carried 303,900 tonnes of cargo and mail, up 11.2% year-on-year. Aeroflot Group uses a belly cargo model, transporting cargo and mail in aircraft cargo holds on passenger flights.

In the reporting period, the cargo/mail tonne-kilometres (TKM) increased by 9.5% to 14.2 billion TKM, while the revenue load factor went up by 0.5 p. p. to 69.3%.

The growth in cargo and mail operations was associated, among other factors, with the expansion of the Group’s wide-body aircraft fleet with six high cargo capacity Boeing 777-300 aircraft.

In 2018, Aeroflot airline carried 223,300 tonnes of cargo and mail, down 1.2% year-on-year. The cargo/mail tonne-kilometres increased by 5.9% to 9.9 billion TKM, with the revenue load factor at 67.4%, down by 0.7 p. p. year-on-year.