Loading the section
Aeroflot is Russia's largest aviation group, bringing together the airline of the same name, a low-cost carrier and regional operations. The company traces its history back to the Soviet civil air fleet, established in 1923. Its shares trade on the Moscow Exchange under the ticker AFLT.
Air travel is a business with a very large share of fixed costs. An aircraft flies to schedule regardless of how many seats have been sold, and the cost of the flight barely changes. That is why the decisive figure is the load factor: the last seats sold bring in almost pure profit, while unsold ones turn the same flight into a loss.
The second key figure is fuel: it is the largest cost item, and the carrier has no control over its price. The third is the fleet: aircraft are either leased or bought with debt, and the payments on them fall due regardless of how full the flights are.
The group is built as several carriers under one roof: a premium one, a low-cost one and a regional one. This split makes it possible to serve customers with different budgets without mixing them in a single product.
Trunk domestic and international flights under the main brand.
A subsidiary airline with a bare-bones fare and a high-density cabin layout.
Flights between cities that bypass the capital's hubs.
Cargo transport, ground handling at airports and the sale of additional services on board.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
The group carries passengers and cargo by air within Russia and abroad. It comprises the main airline, a low-cost carrier and regional airlines.
Because almost all the costs of a flight are fixed: fuel, crew, maintenance and the lease of the aircraft hardly depend on the number of passengers. Each additional seat sold goes almost entirely into profit, while unsold ones make the flight loss-making.
Control rests with the state — it owns the controlling stake. The remaining shares are traded on the exchange.