Based on the results of H1 2019, Utair improved its financial performance, despite the market slump. The Company revenue rose by 2% (RUB 0.5 billion), whereas the operating loss went down by 39% (RUB 1.2 billion). The revenue rate RASK grew by 2%, with the expense rate CASK falling by 2%.

The key revenue rate growth factors were the Company’s successful business policies and introduction of a new ticket fare policy, which ensured the best load growth across the industry while avoiding the ticket price increase. Utair built up the load by 2.4 p.p. to 80.1%, with the average market load increasing only by 0.1 p.p. The Company upped the seat occupancy to the average market indicator, despite a significant share of regional flights where the seat occupancy is traditionally lower than on international flights.

The low expense rate growth was possible due to higher fuel efficiency and streamlining of airport services. The latter positively affected the aircraft fleet utilization as well, with average time on the wing soaring from 7.8 to 8.6 hours.

The number of passengers carried in January – June 2019 amounted to 3,700,684, up 4.6% year-on-year. “Despite the fact that Boeing 737-8 MAХ supply shortfall undermined the growth rates in 2019, Utair improved its financial performance. This is the clear evidence that the Company has opted for the right strategy,” Pavel Permyakov, President of Utair Passenger Airlines commented.