Russian airlines generate a total revenue of approximately 1.77 trillion rubles.
Riding the Wave
Here's a peek at the 2024 financial performance of 29 Russian airlines under local accounting standards. The combined revenue clocked in at a whopping 1.67 trillion rubles, with "Aeroflot" leading the pack with a staggering 712.9 billion rubles, up from 497.5 billion rubles in 2023.
Out of the 22 major airlines, a brilliant 22 surpassed the 100-billion-ruble net profit mark. On the flip side, eight airlines reported a net loss of 27.9 billion rubles, a significant improvement from the 69 billion rubles lost in 2023.
Operating profit, the difference between revenue and expenses (but before taxes and debt), skyrocketed to 61 billion rubles, up from a mere 13 billion rubles in the previous year. Notably, "Pobeda's" data remains under wraps.
Experts attribute this eye-popping growth to the surge in international flights and a rise in ticket prices. Anastasia Egazaryan, a senior analyst at Alfa Bank, estimates that the price factor contributed to around 16 percentage points of revenue growth. Alexander Gushchin, director of corporate ratings at ACRA, emphasizes that international flights are generally more profitable than domestic ones. According to Rosaviatsiya data from "Kommersant", the number of passengers carried on international flights in 2024 reached 27 million (+20.1% year-on-year), compared to 84.7 million on domestic flights (+2%).
Interestingly, the growth in the Russian airline sector can be attributed to a few key factors:
- Domestic Market Expansion: Following international sanctions that limited travel options, the Russian air transport industry experienced growth in domestic passenger traffic, surpassing pre-war levels.
- Recovery from Sanctions: After three years of adapting to the impact of Western sanctions, Russian airlines have managed to recuperate and stabilize their operations, enabling profitability for most domestic carriers.
- Operational Adjustments: Strategic shifts, such as reducing foreign routes and focusing on local traffic, allowed Russian airlines to maintain profitability amidst international challenges.
Stay tuned for more updates!
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In the 2024 forecast, Aeroflot managed to add 215.4 billion rubles to its revenue compared to the previous year, bringing its total to 712.9 billion rubles.The combined revenue of the 29 Russian airlines in 2024 was 1.67 trillion rubles, with 22 of these airlines exceeding a net profit of 100 billion rubles.Experts forecast that the revenue growth in the Russian airline sector could be attributed, in part, to operational adjustments such as a focus on local traffic, which maintains profitability amidst international challenges.
