S7 Airlines has increased its main operational and financial activities
This year, after the third quarter, all the main operational activities increased even more significantly. Thus, passenger turnover increased by 16 per cent and ran up to 2 024 thousand passengers, while 88 per cent seats were occupied which makes it 7 points more than during the third quarter of the previous year.
Taking into consideration the tendency of traffic increase that appeared in the second half year 2007 the current production plan had to be corrected to increase. According to S7 Airlines specialists’ forecast the passenger number in 2007 is expected to be 18 per cent and to mount to 5 789 thousand passengers while passenger turnover will increase by 13 per cent and run up to 14.13 billion passenger-kilometers.
The company’s financial results have also demonstrated a sustainable increase tendency since the beginning of the year. S7 Airlines have gained $845 million (without VAD) during the nine months of the current year which is 27 per cent more than during the same period the previous year. According the renewed forecast the main financial activities are expected to be like those: takings (without VAD) — USD 1 170 million, EBITDA — USD 57 million, EBITDA profitability — 4.9 per cent, overall debt — USD 289 million, debt/EBITDA — 5.0 (according to Russian Accounting standard).
The significant turnover in passenger turnover happens for the following reasons: S7 Airlines makes great efforts to develop the route system, start new regular and charter flights as well as to enlarge the number of flights at the majority of the routes.
In particular in the beginning of September new everyday Moscow-St. Petersburg and Sochi-St. Petersburg flights started to circulate, in October up to three flights a day are planned. Today S7 maintains leading positions in the Sochi region.
In the end of September S7 Airlines got an official notification from IATA stating that the company has been enlisted in the operators register IOSA (IATA Operational Safety Audit) therefore becoming the second Russian air service company that successfully passed the international exploitation safety standard audit.
In 2007, S7 Airlines went on working on its 7 year aircraft renewal program realization. Several large purchase treaties were concluded with the world’s best civil aviation producers (which are Boeing and Airbus) in the framework of this program.
|»||25 Airbus А320, delivery begins in 2009;|
|»||10 Boeing 737-800, delivery begins in 2010;|
|»||15 Boeing 787 Dreamliner, delivery begins in 2014.|
Leasing treaties were also concluded with ILFC company (the subject is four new planes Airbus A320, delivery begins in the beginning of 2008) and Cramington (nine Airbus A319). Two of the latter have already arrived and are to start flying in the middle of October.