Aeroflot is proposing the creation of a mechanism for providing loans to Russian airlines at preferential rates due to the low margins in the air transportation industry.
Aeroflot’s current debt stands at about RUB111bn (USD1.2bn) with an average interest rate of 9pc for the portfolio.
High costs in various spending categories, including aircraft leasing, airport tariffs, and jet fuel prices, pose significant challenges for Aeroflot.
On October 31, Aeroflot published its financial statements for the first nine months of 2023, reporting a net loss of RUB94.64bn (USD1.03bn), including the impact of exchange rate revaluations. However, it stated that without factoring in negative exchange rate differences, it would have posted a net profit.
