Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Aeroflot Profit Falls 13% on Fuel Costs

ReutersAeroflot lost about $20 million after its Ilyushin 96 planes were grounded.
Flagship airline Aeroflot said nine-month profit fell 13 percent after fuel costs soared and some of its planes were grounded over safety concerns.

Net income fell to $119.6 million from $138 million a year earlier, the Moscow-based carrier said Thursday in a statement.

Revenue rose 17 percent to $1.67 billion from $1.42 billion, in earnings to International Financial Reporting Standards.

"I want to emphasize that fuel costs rose 52 percent last year, by $167.5 million,'' Mikhail Poluboyarinov, Aeroflot's deputy director of finance and planning, told reporters. Fuel accounted for 32 percent of operating costs, he said.

The world's airlines probably lost a total $6 billion in 2005, partly because of high oil prices, the International Air Transport Association, which represents 265 carriers, said Tuesday.

State-controlled Aeroflot's sales increased in the period, amid Russia's seventh straight year of economic growth, boosting incomes and travel demand.

Russia's biggest airline lost about $20 million after it was forced to cancel some flights and lease jets when Russian authorities grounded Ilyushin 96-300 planes from Aug. 22 to early October.

The model, which is used by President Vladimir Putin, accounted for 40 percent of Aeroflot's long-haul fleet when it was banned.

The International Air Transport Association said in December that fuel costs represented on average 25 percent of airlines' costs, up from 10 percent to 15 percent five years ago.