Aeroflot Group has disclosed a Rb6.5 billion ($88 million) write-off of goodwill for its subsidiary airline Rossiya in its full-year financial results.

The company has also listed a Rb5.07 billion loss from the disposal of another subsidiary, the eastern Russian carrier Aurora which it sold for the token sum of Rb1.

Aeroflot Group finance chief Andrei Chikhanchin says the Rossiya write-off is attributable to a “decrease in forecasts on the back of the pandemic”.

The group’s management carried out a goodwill assessment for signs of impairment and determined that the recession and recovery would have a “significant negative impact” on Rossiya’s future cash-flow forecast.

It also believes a decline in the carrier’s charter business will put “additional pressure” on the assessment of economic benefits.

Rossiya 737

Source: Rossiya

Rossiya’s revenues for the year reached Rb67.9 billion, a fall of 46%, while it turned in a loss of Rb15.4 billion under international accounting standards – a contrast to the previous year’s Rb8.1 billion.

Aeroflot Group holds just under 75% of Rossiya. The subsidiary carrier has a fleet of 67 aircraft, including 10 Boeing 777s, nine 747s, 12 737s, 26 Airbus A320-family jets and 10 Sukhoi Superjet 100s.

With the Rossiya write-off, subsidiary disposal and other one-off items included, Aeroflot Group turned in a full-year loss of Rb123 billion of which Rb43.8 billion was in the fourth quarter.