UTair reported 5.8% revenue increase in 2017

UTairUTair Aviation reported 5.8% revenue increase in 2017 to 55 billion rubles. During the reported period the company carrier 7.3 million passengers, representing an increase of 9.6% yoy.

“In 2017, Utair increased passenger revenue by 2.7 billion rubles (+5.8%) compared to the previous year, due to the increase in passenger traffic by 9.6%, to 7.3 million passengers. The company’s revenue amounted to 55 billion rubles, while the operating profit reached 200 million rubles. The indicators fully correspond to the financial model of the company. The profit from sales for 2017 is 170 million rubles, the airline’s net profit is 100 million rubles”, says the official statement of the airline.

Utair has a high level of solvency. The coefficients of fast (1.4) and current (1.8) liquidity exceed the regulatory industry requirements (1 and 1.15 respectively). The company has a large volume of net working capital – 7.99 billion rubles. The current liabilities are fully provided by the company’s assets.

In connection with the reorganization of the company in 2017 and the transfer of part of the proceeds to the subsidiary company UTair-Helicopter Services, the revenue and cost price changed by -3.2% and -1.8% respectively by 2016. At the same time, the company fulfilled the debt servicing plan and paid more than 3 billion rubles to creditors.

“The increase in revenue from passenger transportation was influenced by operational efficiency and improved product supply. Utair significantly increased the loading to 76% (+4%) and fulfilled the plan despite the high competition and lower average tariff. Passenger traffic continues to grow, and in January 2018 the company carried 21% more passengers than during the same period last year. In 2018 Utair plans to exceed the plan for business indicators due to effective management of the route network, tariff policy and advertising support”, said the CFO of UTair Aviation JSC, Igor Petrov.