Aeroflot Sees Record 2009 Profits

December 25, 2008

Russia's flag carrier Aeroflot said on Thursday it hoped to boost profit to about 9.3 billion roubles (USD$328.3 million) in 2009, more than in any other year, despite expectations of weaker demand for air travel.

The company said in a statement it hoped to meet the profit target by replacing fuel guzzling jets with fuel efficient airliners and reducing administrative staff.

Aeroflot officials had earlier forecast a 10 to 20 percent drop in Russian traffic volumes next year as corporate clients cut back the number of business trips during the financial crisis.

It had also said net profit for 2008 would come in at around USD$85 million, compared with nearly USD$313 million last year, which has so far been its record year in terms of earnings. The fall is due to higher fuel costs and weaker demand for travel.

In the statement on Thursday, Aeroflot said that despite the planned administrative personnel cuts, the overall staff numbers would grow 5.6 percent after it launches a new international terminal at Moscow's Sheremetyevo Airport and puts new planes into operation.