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Aeroflot Group
Annual
Report 2019
Aeroflot today

Aeroflot Group Today

Aeroflot Group is an innovative airline holding, Russia’s largest carrier and one of the leading airline groups in Europe and globally.

Aeroflot Group is active in key market segments, from premium to budget air travel, providing passengers with a wide range of travelling options. Our priority is improving accessibility to Russia and its regions. Aeroflot is one of the oldest airlines globally with a 96-year track record of delivering services for its passengers, which is key to building a strong and well-recognised airline brand.

The Group is strongly positioned in the market to capitalise on growth opportunities domestically and internationally.

Aeroflot Group Airlines

60.7 million
Passengers carried
Top 20
Global airline group

Aeroflot Group’s business by key segment
61 %
Premium
17 %
Low-cost
15 %
Mid-market
7 %
Charter

Aeroflot is the world’s most powerful airline brand
USD 2.1 billion
The combined value of Aeroflot Group’s brands

>340
Scheduled routes
126
routes operated by our low-cost carrier (including 71 unique routesfor the Group)
>210
Unique destinations (airports), including 186 network carrier destinations

359
Modern aircraft
5.0 years
Average age of Aeroflot airline's fleet
6.9 years
Average ageof Aeroflot Group's fleet
Young fleet

86.7% of flights
Operated on-time
Aeroflot was named as the world’s most punctual airline in the global On-Time Performance Review
Aeroflot received the highest five-star rating as leading global travel data provider, for flight punctuality

41.3
Thousand Employees
Transport accessibility
Aeroflot Group is a major contributor to the accessibility of Russian cities, facilitating inter-country connections and making Russia better connected with the world
Largest
Industry’s employer

Aeroflot Group Airlines

Key Highlights

Aeroflot

Aeroflot is Russia’s leading carrier and one of the oldest airlines in the world. Operates the youngest fleet globally1. Aeroflot’s hub is Sheremetyevo airport in Moscow.

37.2
million passengers
245
Aircraft
101.6 billion RPK
Passenger turnover
128.3 billion ASK
Available seat-kilometres
79.2 %
Passenger load factor
160
Scheduled routes
domestic
59
international
101
23,2
thousand Employees

Rossiya

Rossiya is one of Russia’s largest carriers and the market leader in the North-West of the country. Operates scheduled and charter flights. Based in Saint Petersburg, the company also operates flights from the Moscow air transport hub (Sheremetyevo and Vnukovo airports).

11,6
million passengers
61
Aircraft
33,7 billion RPK
Passenger turnover
39,5 billion ASK
Available seat-kilometres
85,3 %
Passenger load factor
89
Scheduled routes
domestic
48
international
41
7,1
thousand Employees

Pobeda

Pobeda is the leading low-cost airline in Russia. The airline is primarily based at Moscow Vnukovo airport. The company is also focused on increasing flights from Saint Petersburg and Russian regions.

10,3
million passengers
30
Aircraft
18,5 billion RPK
Passenger turnover
19,7 billion ASK
Available seat-kilometres
94,0 %
Passenger load factor
126
Scheduled routes
Domestic
81
International
45
1,8
thousand Employees

Aurora

Aurora is a regional carrier in the Russian Far East. The airline is based at Vladivostok, Yuzhno-Sakhalinsk and Khabarovsk airports and operates flights between the key population centres in the Far East and Siberia, including local destinations, and flights on certain international routes.

1,7
million passengers
23
Aircraft
2,4 billion RPK
Passenger turnover
3,4 billion ASK
Available seat-kilometres
71,2 %
Passenger load factor
45
Scheduled routes
domestic
32
international
13
2,3
thousand Employees

Key Highlights

Investment Case
Passenger traffic
60.7 million PAX
Passenger turnover
156.3 billion RPK
Passenger load factor
81,9 %
Available seat-kilometres
190,9 billion ASK
Revenue
RUB 677,9 billion
RUB 13,5 billion
Net profit / (loss)
EBITDA
RUB 168,9 billion
RUB 3,55 / 3,23
Revenue per available seat-kilometre (RASK)4 and cost per available seat-kilometre (CASK)

Leader in the growing market

Russia is one of the world’s largest aviation markets, still growing and evolving

+7,6%
CAGR 2010–2019

Aeroflot Group is an undisputed market leader in Russia

41,3%
Aeroflot Group's share in the Russian passenger air transportation market

High-quality product inspiring customer loyalty

High-quality product offering across all segments

73%
Aeroflot’s NPS

Powerful frequent flyer programme

9,8%
million Aeroflot Bonus members

Multi-brand proposition
with own low-cost carrier

The growing contribution of Pobeda airline – one of the topperforming and fastest-growing low-cost carriers globally

Low-cost carrier capitalising on the untapped market potential

Pobeda’s share in Aeroflot Group’s passenger traffic breakdown, %
Pobeda’s share in the Russian air transportation market, %

Strategy 2023

  • Grow the number of passengers carried by Aeroflot Group to 90–100 million per year
  • Grow the number of passengers carried by Pobeda to 25–30 million per year
  • Ramp up our international transfer passenger traffic to 10–15 million passengers
  • Set up an international hub in Krasnoyarsk and three regional bases in Sochi, Yekaterinburg and Novosibirsk
  • Increase the fleet of the modern Russia-made aircraft
  • Drive digitalisation across Aeroflot Group airlines

Advantageous location of the hub

The hub’s location in Moscow between Europe and Asia allows Aeroflot to fully seize the opportunities offered by the global air transportation market

Moscow offers an up to three-hour advantage in transit time

Strong financial performance

CASK excluding fuel, U.S. cents per ASK

Social responsibility

9,1 million passengersв
Have been carried under the flat fare programme since its launch

Passenger and Industry Recognition

Delivering on Our Strategy
Five Star Global Airline in APEX’s ratings
APEX Passenger Choice Award for Best Seat Comfort in Europe
4-Star rating by Skytrax
Best Airline in Eastern Europe at the Skytrax World Airline Awards
Flyer Award’s Favourite International Airline in China
World’s Leading Airline Brand and World’s Leading Airline – Business Class at the World Travel Awards 2019
Europe’s Leading Airline Brand, Europe’s Leading Airline – Business Class, Europe’s Leading Airline to Asia
Business Traveller Award’s Best Airline in Eastern Europe
Top 10 brands delivering the best customer experience according to KPMG (the only Russian company among the global leaders)
Top 25 New Examples of Best Practices in Customer Experience according to Forbes

Unmatched service level

Aeroflot reaffirmed its premium status in China after winning the Best China–Europe Transit Airline category at the prestigious Stars Awards again.

Aeroflot once again made it into Top 10 full service airlines in the world according to a reputable global booking portal eDreams, based on passenger reviews.

Aeroflot Bonus programme was once again voted the winner in two categories at the 2019 Freddie Awards: Best Customer Service and Best Elite Program.

Aeroflot was recognised as the best airline in Russia at GQ Travel Awards 2019.

Aeroflot won the 2019 Skyway Service Award in two categories: Business Class (scheduled international and domestic flights) and Economy Class (scheduled international flights). The Company was also voted the winner in the Best Online Services for Customers, Best Service for Passengers with Children and Passengers with Special Needs, and Best Duty Free on Board.

Aeroflot Group was named Airline of the Year at the 2019 Wings of Russia National Airline Award in the International Passenger Carrier and Domestic Passenger Carrier, Group 1, categories.

Technology and innovation

Aeroflot was placed fourth in Bain & Company’s ranking of digitalisation of airlines.

Aeroflot won the Global CIO’s Project of the Year IT award in two categories: Best Industry Solution – Transportation, and Analytical Solutions and Big Data – Best Project in Cargo Logistics.

Aeroflot received the E-Commerce Project of the Year award at the CNews AWARDS 2019 for upgrading its website and mobile app.

Aeroflot’s Tax Monitoring Data Mart project won the annual Innovation Time 2019 award in the IT and Digital Technology category.

Awards to subsidiary airlines

Rossiya airline

In 2019, Rossiya broke into the Top 50 most valuable Russian brands ranking by Brand Finance, the world’s leading independent brand valuation consultancy, for the first time.

Rossiya was named the leader in carrying transfer passengers of Saint Petersburg airport and won a LED Together award in the Biggest Contributor to Transfer Traffic category.

Rossiya won Sheremetyevo airport’s Perfect Timing Award in the Russia’s Largest Air Passenger Traffic Generator in 2019 special category.

Rossiya’s children’s goody bags won the Highly Recommended Award from the British TravelPlus magazine.

Skyway Service Award: “Best Economy Class, Domestic Scheduled Flights”, “Best Airline for Tourist Destinations”, special nomination for aviation support for the Year of Theatre in Russia national project.

The participants in the NETWORK Eurasian Route Development Forum voted Rossiya the best airline and the winner in the Best Progress in Service category.

Rossiya was honoured with the Amur Tiger Centre’s award for its contribution to the preservation of wild cats.

Rossiya received special recognition for the promotion of regional traffic at the Eurasian Regional Air Traffic Award.

The airline topped Saint Petersburg Brand Rating in the Transport category.

Letter of Acknowledgement from the President of the Russian Federation to recognise Aeroflot’s contribution to air transport development and highly professional performance.

Letter of Acknowledgement from the Government of Saint Petersburg to recognise Aeroflot’s contribution to the regional tourism development and commitment to high quality standards.


Pobeda airline

The fastest-growing low-cost carrier in Europe according to CAPA – Centre for Aviation, one of the world’s most trusted sources of market intelligence for the aviation and travel industry.

Pobeda won Vnukovo airport’s Airline Punctuality Rating in two categories: the Most Punctual Airline with Passenger Traffic of Over One Million Passengers and the Fastest Growing Russian Airline.


Aurora airline

The company won Skyway Service Award in the Best Regional Carrier category.

Aurora won the Domestic Passenger Carrier, tier two, category at the 2019 Wings of Russia National Airline Awards and a diploma in the 2018 Best Regional and Local Carrier category.

Aurora was named the leader in the Best Practices category according to the 2019 Service in Russian Sky research. The company was honoured for the best in-flight experience.

The Trademark of the Year award in the Regional Brand – Logistics category.

Delivering on Our Strategy

Key events of the year

Aeroflot Group introduced baggage-free fares for a number of medium-haul flights operated by Aeroflot and Rossiya airlines.

Rossiya airline was appointed the official carrier of the I Winter Children of Asia International Sports Games.

Aeroflot launched flights to Marseille (France) and Palma de Mallorca (Spain).

Aeroflot, Federal Air Transport Agency and UAC held the Best in the Sky contest for future pilots of the Russian aicraft.

Aeroflot was appointed the official carrier of the FIBA Basketball World Cup 2019.

Aeroflot, Krasnoyarsk Region authorities and Krasnoyarsk International Airport signed an agreement to establish an Aeroflot Group hub in Krasnoyarsk.

Aeroflot joined the Digital Transportation and Logistics Association.

The rating agency Fitch upgraded PJSC Aeroflot’s credit rating to “BB” with a Stable outlook.

PJSC Aeroflot’s corporate governance rating was confirmed at 7++.

Aeroflot celebrated 30 years of the International Air Transport Association (IATA) membership as well as the 60th anniversary of membership with SITA, the world’s leading provider of air transport communication and information technology.

Russia’s Anti-Monopoly Service and Aeroflot developed joiny approach to economy class pricing.

Aeroflot offered special discounted fares under a new global promotion.

Aeroflot signed a code-sharing agreements with AeroMexico, Vietnam Airlines and Brussels Airlines.

Aeroflot launched a cargo agent’s personal account to streamline its cargo operations.

PJSC Aeroflot and Sukhoi Civil Aircraft began implementing the agreement for the delivery of 100 SSJ100 aircraft.

Events after the reporting period

Aeroflot was granted IATA’s Level 4 NDC certification.

Aeroflot commenced to move some international flights to new Terminal C of Sheremetyevo airport.

Aeroflot and Japan Airlines signed a code-sharing agreement.

Aeroflot Group launched a new fare family – Base – for Business and Economy classes.

Pobeda airline established its own aviation training centre to provide professional training to flight attendants and scheduled training to pilots.

Aeroflot Group started to temporarily optimise capacity and ground aircraft fleet in response to the global COVID-19 pandemic.

NDC certification

In 2019, Aeroflot completed preparations for Level 4 New Distribution Capability (NDC) certification by the International Air Transport Association (IATA) (granted in January 2020).

The NDC Level 4 certificate helps significantly improve customer service as offers and orders are fully agent-managed, and additional service functionality is provided. The new functionality enables accelerated air ticket refunds and exchanges, tracking booking changes, and quickly switching agent network to own sales channel while optimising distribution costs.

30 years of the IATA membership

Aeroflot celebrated 30 years since becoming a member of the IATA. For three decades, PJSC Aeroflot has acted as the association’s champion in Russia. IATA’s initiatives, including E-tickets, IATA BSP (Billing and Settlement Plan) and CASS (Cargo Account Settlement System), which help boost agents’ sales performance, were introduced in Russia largely through Aeroflot’s efforts. PJSC Aeroflot’s Chief Executive Officer Vitaly Saveliev was re-elected to the IATA Board of Governors.

Passenger service enhancements

Aeroflot Group introduced baggage-free fares to enhance its product offering and maximise customer experience. In April, the Lite fare family was introduced for certain destinations operated by Aeroflot and Rossiya airlines. Phase 1 of the project revealed high passenger demand, and in June it was rolled out to the entire medium-haul route network of Aeroflot, Rossiya and Aurora. In December, the Lite fare family was also introduced for certain long-haul flights.

Passengers preferring baggage-free fares can still take carry-on baggage on board and pay a checked baggage fee if needed. The Group’s wide range of fares enables passengers to choose a product that best matches their specific needs and significantly improves the accessibility of air travel.

Setting up a hub

Aeroflot embarked on establishing an international hub in Krasnoyarsk to generate additional transit traffic on domestic and international routes, in line with its Development Strategy. In 2019, Aeroflot, Krasnoyarsk Region authorities and Krasnoyarsk International Airport signed an agreement to establish an international hub in Krasnoyarsk. The Siberian city’s beneficial geographic location will enable improved air connectivity between destinations in Russia and abroad.

Aeromar celebrates its 30th birthday

Pobeda: 5 years in the sky

Varied and high-quality in-flight catering has traditionally been Aeroflot’s competitive advantage

Today Aeromar is the largest in-flight catering, aircraft cleaning, outfitting and in-flight shopping company in Russia also focused on retailing SKYSHOP products in airports. Aeromar has branches in Saint Petersburg, Sochi, Rostov-on-Don and Simferopol, as well as subsidiaries in Vladivostok, Krasnodar and Ufa.

Aeromar is focused on providing personalised customer service and continuously enhances its technology and business processes, as well as conducts product quality audits across its partner manufacturers and suppliers. The company has repeatedly engaged world-class chefs to design its menus.

~150 thousand meals
are delivered on board Aeroflot aircraft every day
>50 million in-flight meals
have been prepared in 2019
~30 special meals
are offered from across 9 world cuisines to meet religious, age and taste requirements of passengers and crew
>50 customer airlines
benefit from Aeromar’s services
>210 thousand flights
have been served in 2019

Pobeda: 5 years in the sky

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In December 2019, Pobeda airline celebrated its 5th anniversary.

On 1 December 2014, the company launched its first flight to Volgograd from Moscow Vnukovo airport. A few months later, Pobeda carried its one millionth passenger. During the five years of its operation, the Russian low-cost carrier has delivered an impressive performance.

Low-cost services provide a significant contribution to improved population mobility and travel accessibility in Russian regions, as well as stronger ties between them.

Year million PAX Passenger load factor Aircraft fleet
2019 10,3 million PAX 94,0% 30
2018 7,2 million PAX 94,1% 24
2017 4,6 million PAX 94,2% 16
2016 4.3 million PAX 88,3% 12
2015 3,1 million PAX 81,2% 12
2014 0,1 million PAX 78,0% 8

Busines-model highlights and achievements

Busines-model highlights and achievements

Efficient fleet

Single cabin configuration, high seat capacity

Online sales

pobeda.aero

Stimulating the market

Around 30% of destinations are unique (not serviced by other Russian carriers)

12% of Pobeda’s customers travelled by land only before LCC was established

Record high Boeing 737-800 flight hours

~16 hours

Service options

Growing revenue from value-added services

High demand

Passenger load factor Around 94%

Low operating costs CASK1

around RUB 2.2

High customer satisfaction index and improved brand recognition

>60% NPS

0,1 million PAX
78,0%
Passenger load factor
8
Aircraft fleet
  • The first flight from Moscow to Volgograd
3,1 million PAX
81,2%
Passenger load factor
12
Aircraft fleet
  • Active expansion of the route network between Moscow and Russian regions
  • First international service launched: Moscow–Bratislava
  • First inter-regional flights launched from Russian regions to Sochi and Anapa
4,3 million PAX
88,3%
Passenger load factor
12
Aircraft fleet
  • Active expansion of domestic and international route network
  • First flights from Saint Petersburg
4,6million PAX
94,2%
Passenger load factor
16
Aircraft fleet
  • 10 million passengers carried since the first flight
  • Performance improved with a passenger load factor growing up to 96.8% in the third quarter
  • Pobeda has the fastest turnaround times in Russia
  • Accelerated growth: new aircraft delivered
7,2 million PAX
94,1%
Passenger load factor
24
Aircraft fleet
  • 20 million passengers carried since the first flight
  • Pobeda set the world record in Boeing 737-800 flight hours
  • Accelerated growth: the company received 8 new aircraft, passenger traffic was up 56.8%
  • New goals set in line with Aeroflot Group’s Strategy
10,3 million PAX
94,0%
Занятость кресел
30
Aircraft fleet
  • In July, Pobeda carried 1 million passengers by 30 aircraft within a month’s period for the first time
  • A steady and strong growth rate – a 43.2% passenger traffic increase – delivered a twofold growth in customer base over two years

Inside
Report

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