Aeroflot's Profit Soars, But a Multi-Billion Ruble Insurance Deal Is the Key Story
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Aeroflot Group has released its consolidated financial results for the first six months of 2025, prepared in accordance with International Financial Reporting Standards (IFRS). The Russian airline reported a net profit of RUB 74.3 billion (approximately USD 800 million), a 75.7% increase compared to the same period in 2024.
The group's total revenue reached RUB 414.8 billion, representing a 10.0% year-over-year growth. This increase was primarily driven by an 11.3% rise in revenue from scheduled passenger flights, which amounted to RUB 388.6 billion.
Operationally, Aeroflot carried 25.9 million passengers during the first half of the year, up 2.0% from the previous year. Domestic traffic grew by 1.3%, while international routes saw a 4.1% increase. The average load factor stood at a strong 89.1%, an improvement of 0.8 percentage points.
| Operational Indicator | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Passengers Carried | 25.9 million | 25.4 million | +2.0% |
| Revenue Passenger Kilometres (RPK) | 71,062 million | 68,548 million | +3.7% |
| Load Factor | 89.1% | 88.3% | +0.8 p.p. |
Andrei Chikhanchin, Aeroflot's Deputy CEO for Commerce and Finance, commented that while the group met its operational targets, it faced challenges in its cost structure. He noted a continued rise in passenger service expenses due to airport fees and an increase in labor costs following salary enhancements approved last year.
Financial Analysis and Challenges
Despite revenue growth, the group's operating costs (excluding other income/expenses) increased by 14.3%, outpacing revenue growth. The largest impact came from aircraft maintenance expenses, which soared by 66.6% to RUB 31.6 billion, mainly due to a change in the classification of spare parts and the rising cost of components.
| Financial Indicator | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Total Revenue | 414,781 | 377,215 | +10.0% |
| EBITDA | 141,464 | 125,948 | +12.3% |
| Adjusted EBITDA | 82,760 | 117,189 | -29.4% |
| Net Profit | 74,314 | 42,287 | +75.7% |
| Adjusted Net Profit | 4,301 | 27,025 | -84.1% |
(Financial figures in millions of RUB)
Labor costs also saw a sharp 35.3% increase, totaling RUB 58 billion, as a result of salary improvements for pilots, cabin crew, and engineering staff implemented since late 2024.
A key point highlighted in the report, according to a press release from Aeroflot, was the behavior of fuel costs. While the price per ton of kerosene slightly decreased, the company received lower government compensations (the "damper" mechanism) due to the strengthening ruble, which raised the effective fuel expenditure by 19.5%.
One-Off Factors and Debt
The bottom line was significantly influenced by two extraordinary factors. On one hand, the company recorded an income of RUB 42.9 billion from the insurance settlement for 17 aircraft. On the other hand, it registered a gain of RUB 34.2 billion from the revaluation of its lease liabilities due to the appreciation of the ruble.
Excluding these and other non-recurring effects, the adjusted net profit for the first half of 2025 was RUB 4.3 billion, a figure considerably lower than the RUB 27 billion in adjusted profit recorded for the same period in 2024.
Aeroflot Group's net debt decreased by 20.4% since the end of 2024, standing at RUB 476 billion as of June 30, 2025.
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