Russia seeks partial privatisation of state carrier Aeroflot
Russian national air carrier Aeroflot (AFLT) plans to privatise a 23.76% stake worth approximately RUB45.6bn ($634mn) as part of the government’s broader financial market development programme, according to RBC business portal citing Rosimushchestvo state property agency.
Rosimushchestvo announced on May 22 that it had launched the process of selecting an organiser for the sale of 944.6mn Aeroflot shares, equivalent to 23.76% of the company’s capital.
The Finance Ministry commented that the transaction forms part of the federal project Development of the Financial Market, which aims to expand the use of IPOs and secondary placements involving state-owned companies.
The Finance Minister Anton Siluanov previously claimed that proceeds from the sale of stakes in seven companies scheduled for privatisation in 2026 could total RUB100bn–RUB300bn.
As covered by IntelliNews, the largest IPO of 2025 was that of a state-controlled mortgage and housing agency DOM.RF.
However, the government has also been struggling to sell off some of the recently nationalised assets, such as Domodedovo airport or YuzhUralZoloto gold major.
The state currently owns 73.77% of Aeroflot, while the free float stands at 25.03%. Following the transaction, the free float could reportedly increase to 48.79%, while the state would retain a controlling stake of 50% plus one share.
Applications for participation in organiser selection will be accepted until June 8, while the placement itself is scheduled for 2026 and will depend on market conditions.
Aeroflot shares declined following the announcement. The stock fell 0.99% during the main Moscow Exchange (MOEX) trading session on May 22 to RUB47.55, while losses deepened in evening trading with shares briefly declining 2.36% to RUB46.9, according to RBC.
Despite continuous sanctions, in 2024 the company posted its first profit since 2019 and adopted a dividend policy. In the case of any sanction relief, the carrier is seen as one of the main gainers among Russian corporate majors.
The state has supported Aeroflot since 2020, purchased newly issued shares at RUB34.29 per share in 2022, increasing its stake to 73.77%.
Notably, the 2025 passenger turnover was in line with the guidance of Aeroflot. Aeroflot management previously aimed for 5% turnover growth in 2025. Last year, the key challenges for the state carrier were continued maintenance of foreign aircraft and delays in deliveries of domestic jets.
However, Aeroflot was expected to further consolidate its market share due to disproportionate state support and lower exposure to reportedly malfunctioning foreign jets locked inside Russia.
Aeroflot reported revenue for 2025 rose 6.7% year-on-year (y/y) to RUB760.4bn, while net profit increased 5.6-fold to RUB123.04bn. Adjusted profit declined to RUB11.85bn from RUB58.99bn a year earlier.
Analysts broadly expect the placement to be conducted at a discount to market prices with the SPO discount possibly reaching 10-15%. They warned that Aeroflot’s business remains highly exposed to fuel prices, ruble volatility, sanctions, aircraft maintenance costs and geopolitical risks.
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