Aeroflot halves net losses in 2021 thanks to domestic recovery

Russian carrier Aeroflot halved net losses in 2021, mainly thanks to a recovery in domestic demand.  

The carrier reported a net loss of RUB 45 billion ($598 million), according to RAS accounting standards, halving from RUB 96 billion ($1.2 billion) in 2020. Revenue rose 65% compared with 2020. 

“A significant driver of the improved financial result for 2021 was demand and the growth that it drove in domestic flight volumes, which the company focused on starting from the high season,” commented Aeroflot deputy chief executive for commerce and finance Andrey Chikhanchin. 

Chikhanchin said domestic passenger numbers in Russia were 15% higher than in 2019.  

On international routes, Aeroflot started the year at 16% of pre-crisis capacity, but said this increased to 49% in December as travel restrictions eased.  

“Despite the challenges related to the pandemic, Aeroflot was able to deliver improved results in 2021, with revenue rebounding and a significant reduction in the loss for the year,” Chikhanchin commented.