OREANDA-NEWS. JSC Aeroflot (MOEX: AFLT) today announced consolidated IFRS financial results of Aeroflot Group (the "Group") for the six months ending 30 June 2014.

1H 2014 Financial Highlights

Revenue increased by 9.4% year-on-year to RUB 140,281 million, driven by growth in the Group's passenger traffic. Revenue growth was also supported by a decline in the rouble exchange rate vs. key global currencies;

Operating costs amounted to RUB 141,665 million, up 15.2% year-on-year, due to the weaker rouble, increased scale of the Group's operations, and a one-off creation of provisions for impairment of accounts receivable;

EBITDAR1 decreased by 16.6% year-on-year vs. 1H 2013 to RUB 16,657 million;

The Group's net loss for the period was RUB 1,905 million.

JSC Aeroflot Deputy CEO for Finance and Network and Revenue Management Shamil Kurmashov said: “In the face of challenging economic and market conditions Aeroflot has strengthened its position as Russia's leading air transport provider and one of Europe's most dynamic airline Groups. We grew faster than the market in key areas of operating performance, optimised our route network and expanded our fleet with modern aircraft. Aeroflot also further transformed the domestic commercial aviation market with the launch of Russia's first major low-cost carrier, proving there is demand among consumers for this type of transportation. Despite the volatile economic situation we face this year, the Russian market continues to hold significant long-term structural growth potential, and the Group's unique competitive advantages will enable it to continue to outgrow the market.

“Slower economic growth rates in Russia, combined with significant one-off factors, had a negative effect on the Group's financial results in the first half of 2014. At the same time, Aeroflot Group remains well-positioned to continue its profitable growth and to implement its strategy aimed at building value for our shareholders.”