OREANDA-NEWS. July 18, 2012. UTair Group has published its consolidated financial statements for 2011 prepared in accordance with IFRS. The report was prepared and approved by Ernst&Young - a global leader in assurance, tax, and transaction advisory. The preparation and audit of financial statements in accordance with IFRS are the essential elements of UTair's ongoing policy for improving transparency and attractiveness to investors.

The final report reflects impressive growth in operational performance indicators. Passenger traffic grew by 38.3% to 12.4 billion passenger kilometers and helicopter flight hours grew by 15.3% to 139,580 hours. UTair aircraft carried more than 6.7 million passengers. 2011 revenue doe UTair Group exceeded 55 billion rubles, 25% more than in 2010. The margin for UTair Group EBITDA reached 14%.

“In 2011 we confirmed our status as an effective, rapidly-growing company, both in passenger traffic and helicopter operations,” commented Igor Petrov, First Deputy General Director and Chief Financial Officer of UTair speaking about the airline's activity in 2011. ''Positive financial results were achieved through a balanced policy of expanding the route network, opening new areas for the helicopter business and fleet renewal. As a result of improved service, we were able to strengthen loyalty among our customers and partners," he said.

Last year the UTair Group added 40 fixed wing aircraft and 41 helicopters to the fleet and 48 new routes were established. Expansion continues in 2012 with plans to launch operations on popular destinations to the Far East in a joint program that will include government subsidies for qualifying passengers.

In light of industry trends and international best practice, the UTair Group has decided to integrate leaseback operations into its overall financial strategy. The increased volume of current assets resulting in such operations will be used to reduce net debt. In accordance with accounting policy rules, UTair Group has also begun to hold a regular revaluation of its fixed assets. The result of this has been a substantial increase in the cost of equity capital and improvement of the balance sheet.