On February 2, 2005, Aeroflot Board of Directors considered the issues “On Flight Safety” and operating and financial results for 2004.

The Board of Directors noted that the growth rate of absolute and qualitative indicators of the company’s main activity take the lead over Russian as well as world average indicators.

In spite of the increasing number of flight hours of the airline company a number of incidents reduced in 2004; Aeroflot flight safety level reached 99.95% which corresponds to “good” characteristics according to the world classification.

Federal Transport Control Department carried out two inspections in 2004 which confirmed high quality of work to provide safety in the airline company. According to the inspections results Aeroflot Certificate period of validity was prolonged till November 25, 2006.

In 2004 quality management system introduction was completed in Flight Complex, Aeroflot Air Technical Center, On-board Service Department and Carriage Ground Control Complex. Aeroflot audits resulted in receiving certificates of meeting the requirements of ISO 9001-2000 standards. The system of inspection orders control was efficient (it was reached 100% of all inspection orders implementation).

In 2004 the airline company improved and renewed significantly its aircraft fleet. 18 planes of A-319/320/321 types were put in operation. The airline company’s standards were brought to conformity with international safety demands.

The Board of Directors decided to carry out additional measures aimed at permanent provision of high level of flight safety and airworthiness of the airline company’s planes.

At the Board of Directors meeting they considered preliminary operating, financial and economic results of Aeroflot in 2004.

Last year Aeroflot carried 6.862 million passengers and 146 700 tons of post and freight (17.4% increase vs. 2003); there were made 21.001 billion passenger-kilometers and 2.745 billion ton-kilometers (21.8% increase vs. 2003).

Passenger carriages plan was exceeded on the international lines as well as home ones. Freight and post was carried by 28.5% more than in 2003.

Passenger seats’ occupation rate corresponds to the last year level and amounts to 69.0 %. Percentage of enplaned traffic amounted to 58.2 %; it exceeded the level of 2003 by 1.2 %.

They have flown on all airline types on the whole by 20.5 % hours more.

Aeroflot air carriages earnings for 2004 amounted to 1 944.83 mln USD vs. its plan of 1 840.0 mln USD.

In comparison with 2003 earnings for 2004 increased by 22.5% or 357.0 mln USD.

Operation costs are expected to be 51 323.8 mln rubles (1 778.1 mln USD) that is by 847.7 mln rubles less than it was planned (-1.6%).

Total costs reduction amounted to 3 683.9 mln rubles.

The airline company’s measures to fix prices and to reduce operation costs increase allowed to compensate aviation fuel price rise loss.

According to operating and financial results of 2004 net income is expected to be 5 171.50 mln rubles (181.95 mln USD) vs. 3 894.21 mln rubles (124.89 USD) according to the plan. Net income increase amounted to 1 277.29 rubles (57.06 mln USD). In comparison with the last year net income increased by 1 193.49 mln rubles (53.65 mln USD).

The Board of Directors approved also Aeroflot capital investment plan for 2005.

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