Aeroflot sees signs of stabilisation in 2Q2019, feels impact of FX, airspace closure and high base

Aeroflot deputy CEO for commerce and finance Andrey Chikhanchin announced (29-Aug-2019) the first signs of stabilisation in 2Q2019, despite fuel prices remaining high. Mr Chikhanchin said fuel prices declined in Jun-2019 for the first time in close to two years and the depreciation of the ruble against the US dollar slowed from 16.2% in 1Q2019 to 4.5% in 2Q2019. Mr Chikhanchin noted a slight strengthening of the rouble against the euro, alongside weak yields on European routes, led to a further shortfall in revenues, while the temporary closure of Pakistan's airspace put additional pressure on financial results. Mr Chikhanchin said 2Q2019 results are also impacted by the high base effect, with the FIFA World Cup held in Russia in Jun-2018. [more - original PR - English/Russian]