Russia’s Utair Aviation reported 2017 annual net income of RUB 2.4 billion ($42.2 million), down 55.4% from a RUB5.5 billion in the year-ago period.
Revenue for the year rose 0.5% to RUB75.8 billion year-over-year (YOY), while operating profit grew 27% YOY to RUB7.6 billion.
The results were published in accordance with International Financial Reporting Standards.
Russia’s Utair Aviation unveiled a new corporate identity in October 2017, which features a lower-cased “t” in Utair.
Utair continued to show negative equity in 2017—RUB8.4 billion—up 38.7% YOY from RUB6.03 billion in 2016, which is because of the revaluation of main assets.
“The company has used independent ‘valuers’ to revalue the main assets in line with market conditions,” Utair said in its annual report. The main assets of the company decreased 14.2% YOY to RUB53.2 billion. The negative equity is balanced by a state guarantee of RUB9.5 billion, which is secured by the pledge of the controlling shareholding of 50% plus one share. The audit confirmed Utair has observed all borrowing covenants and has also realized a one-off charge of RUB2.5 billion for restructuring costs.
Utair carried 7.3 million passengers in 2017, up 9.7% YOY; it expects to increase the number of passengers to 8.2 million in 2018. The Moscow Vnukovo-based airline’s fleet consists of 65 aircraft; it ordered 30 Boeing 737 MAX aircraft April 7.