Aeroflot profits dive as fuel costs soar

PROFITS at Aeroflot, Russia's national carrier, could almost halve in 2008 because of high fuel costs, the firm revealed yesterday.

But chief executive Valery Okulov said the company was still on the lookout for acquisitions.

Okulov said in an interview that fuel as well as import duties on foreign aircraft and ground servicing costs would slice profit to a range of $150 million (£85m) to $170m this year from the $313.4m booked last time. He said soaring fuel prices and the lack of ways to hedge jet fuel costs in Russia meant Aeroflot would spend $130m more on fuel in 2008 than last year.

Okulov, who in his 11-year tenure has brought Russia's best-known airline back to profit from the losses and crippling debts of the 1990s, said his aim was to make Aeroflot a truly global carrier.