Aeroflot to revise budget, lower profit forecast by end of 2018

VLADIVOSTOK, Sep 11 (PRIME) -- Russian national flagship air carrier Aeroflot will revise its budget by significantly lowering its net profit forecast by the end of 2018, Mikhail Poluboyarinov, chairman of the company’s board of directors, told reporters Tuesday on the sidelines of the Eastern Economic Forum.

“We plan to revise the budget by the end of the year by lowering profitability. They are currently calculating what additional costs will be,” he said.

Aeroflot is suffering serious losses due to higher jet fuel prices and in order to compensate for losses has to launch new profitable routes to India and China with new planes and use old planes on less profitable routes, Poluboyarinov said.

“This is a significant figure (lowering profitability) on the approved budget of the group. That’s why we have to earn somehow. As a board of directors, we considered this issue several times. There is no miracle. That’s why a maneuver with the fleet is necessary,” he said.

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