28 September 2017, Moscow. — PJSC Aeroflot (Moscow Exchange ticker: AFLT) announces the results of the Board of Directors meeting held on 28 September 2017. The meeting was chaired by Mikhail Poluboyarinov.
The meeting agenda included the following items:
Results of Aeroflot Group’s consolidated budget for the first six months of 2017. Total passenger traffic for the Russian air travel market, including international carriers flying to and from Russia, in the first half of 2017 amounted to 54.1 million passengers. Aeroflot Group’s market share declined by 2.2 percentage points compared to the first half of last year, from 44.6% to 42.4%. PJSC Aeroflot achieved 101.1% of its passenger traffic targets and the Group achieved 99.6% of its targets. In the first half of the year, Aeroflot Group’s key operating metrics rose more than the growth rates of international competitors.
Auditor’s report on PJSC Aeroflot’s IFRS results. In the report issued by JSC PriceWaterhouseCoopers it was noted that the audit for the first six months of 2017 did not find any material instances of non-compliance with current legislation or actions not in good faith, including manipulation of financial reporting.
Implementation of Aeroflot Group’s Long-term Development Programme (and achievement of KPIs in the second quarter of 2017). It was noted that the implementation of Aeroflot Group’s Long-term Development Programme was being carried out successfully, and that the actual results have exceeded KPI targets, including for the following metrics: flight punctuality, passenger load factor and labor efficiency. The key activities of the programme were successfully implemented.
PJSC Aeroflot’s incentive system. A revised KPI policy for PJSC Aeroflot was approved. The results of PJSC Aeroflot management’s delivery on KPIs for the second quarter of 2017.
Results of the independent assessment on carrying out the Innovation Development Programme (IDP) for organisations with state ownership. It was noted that Aeroflot was ranked in the top ten among the first category of corporations in the IDP rating, placing ahead of several well-known companies from the energy and defence sectors.
The meeting approved the new revised editions of the Policy on Procedures for Forming and Using Funds for Sponsorship Support, the Policy on Procedures for Raising and Using Funds for Charitable Causes, as well as the Policy on Procurement of Goods, Jobs and Services.
The meeting reviewed the issue of relations between PJSC Aeroflot and its subsidiaries, in particular, with Rossiya Airlines in the area of finances and with CJSC Aeromar with regards to the sale of goods by the company on board Aeroflot flights.