PJSC Aeroflot (Moscow Exchange ticker: AFLT) announces the results of a meeting of the Board of Directors held on 8 April 2022. The meeting was chaired by Minister of Transport of the Russian Federation Vitaly Saveliev.

The following agenda items were discussed during the meeting:

The results of implementation of Aeroflot Group's consolidated budget for the year 2021. Passenger traffic of the Russian airline market including foreign carriers for the period totalled 117.1 mln. Aeroflot Group’s market share was 39.1%. In 2021, the pace of recovery of key operating and financial indicators of Aeroflot Group were on the whole higher than that of international peers.

According to the financial statements, on the back of domestic market growth and positive dynamics of recovery of international operations, net loss in 2021 decreased by 3.6 times versus 2020 and was 34.5 bln RUB.

Distribution of net profit/loss of Aeroflot Group for the year 2021. The Board of Directors considered the financial results of the Aeroflot Group companies and determined on the distribution of net profit/loss. Following the loss posted by the Group it is planned not to announce and not to pay dividends for the financial year 2021.

Annual accounting statements, including the Company’s financial results for the year 2021 financial year. Financial results for 2021 have been influenced by the COVID-19 pandemic. In 2021, regular international operations partially recovered, the demand dynamics improved and domestic operations within Russia considerably expanded. Improved operating indicators were the result of the positive effect of these factors.

The PJSC Aeroflot Auditor Report on the Group’s IFRS financial statements for 2021 was taken in consideration. The report outlined that despite continued uncertainty with precise estimates of airline industry recovery in the aftermath of COVID-19 the introduced measures will enable the Group to meet its financial obligations in foreseeable future. 

PJSC Aeroflot Auditor Report on the Group’s RAS financial statements for the 2021. The audit report was conducted by JSC “HLB Vneshaudit”. According to the audit report, the accounting processes were of a high standard, resulting in high quality and speed of preparation of financial statements.

Implementation of Aeroflot Group's long-term development programme (LDP) and achievement of key performance indicators (KPIs) for 2021. The implementation of the programme and achievement of key performance indicators in terms of aircraft fleet and passenger traffic of the Group continued to be affected by COVID-19 pandemic.

PJSC Aeroflot’s motivation system. According to the results for Q4 2021 and 2021 individual KPIs of Deputy CEOs, other members of the Management Board, and Chief Accountant of PJSC Aeroflot have been largely implemented. Non-implementation of certain indicators is the result of the coronavirus-related restrictions on the international air routes.

Election of CEO of PJSC “Aeroflot”. By resolution of the Board of Directors of PJSC Aeroflot on 8 April 2022, Sergey Aleksandrovsky was appointed as Director General and Chairman of the Management Board.

In early March 2022, Sergey Aleksandrovsky was appointed as Deputy Director General of PJSC “Aeroflot”. His terms of reference were aimed at anticrisis management coordination at the airline. Sergey Aleksandrovsky previously held the position of Director General of Rossiya Airlines (as part of Aeroflot Group). He has a vast work experience in civil aviation, held various executive positions, including sales and property matters departments of Aeroflot. Under his management, the updated business model of Rossiya Airlines was implemented to focus on the development of air connectivity of Russian regions and the establishment of domestically-produced aircraft operation competence centre on the basis of the airline.

During the meeting, the members of the Board of Directors outlined the results achieved under the leadership of Mikhail Poluboyarinov who headed Aeroflot from November 2020. The main task for the period was the consistent implementation of Aeroflot Group Strategy adopted in summer 2020 as well as increasing operations on the back of gradual post-crisis recovery of the market. Participants of the meeting thanked Mikhail Poluboyarinov for professionalism and prompt decision-making, which amid pandemic-related restrictions enabled the airline to significantly improve operating and financial results for 2021 without deviating from the mainline vector of the development strategy.  

Upon considering the “Change to the composition of the Management Board” item of the agenda, the Board of Directors appointed Deputy Director General – Flight Director Eduard Sovetkin to the Management Board of PJSC Aeroflot, and dismissed Andrey Panov from the Management Board due to his resignation from PJSC Aeroflot.