Aeroflot focuses multi-brand strategy as 3Q operating profit doubles, benefits from Transaero demise

The Aeroflot Group more than doubled its operating profit for 3Q2015 and 9M2015. The weakness of RUB served to inflate both revenue and costs, but these two factors cancelled each other. As with other airlines, low fuel prices helped Aeroflot's results, but the underlying driver of its profit improvement was its growing market share and the positive impact this had on unit revenue.

Already Russia's largest airline group, it is benefiting from the weakness of domestic rivals and capacity cuts in Russia by foreign competitors. It is no longer buying a majority stake in Transaero, but is to take over some of its bankrupt rival's routes and this will further extend its market leadership.

Moreover, a successful first nine months for its LCC Pobeda and a plan to merge three of its regional airlines under the Rossiya brand help to sharpen Aeroflot's multi-brand strategy, making it the leader in each main market segment.