Vnukovo’s losses escalate as traffic declines

Vnukovo expects traffic to further decline throughout 2016 (Photo by Leonid Faerberg / transport-photo.com)

Moscow’s Vnukovo International Airport has reported a 70.6% YOY increase in net loss at the end of last year: 1.807 billion rubles (23.47 million dollars) against 1.059 billion rubles in 2014.

According to the airport’s annual financial performance report done in compliance with the Russian accounting practice standards, the company’s revenues grew 17.7% to 6.199 billion rubles (80.5 million dollars) against 5.296 billion rubles in the previous year. Over 62% of the revenue was generated by aviation-related operations (3.847 billion rubles), and almost 38% stemmed from non-aviation related activities.

Gross profit is another indicator that demonstrated growth of 170% to 0.675 billion rubles against 0.25 billion rubles in 2014. Vnukovo’s debt obligations decreased by 21% to 1.250 billion rubles against 1.584 billion rubles in 2014.

According to the report, Vnukovo considers probable passenger traffic decline caused by “the loss of existing customers and an insufficient number of new customers due to stringent competition between Moscow airports” as its highest risk factor, along with currency fluctuation risks.

In an earlier interview to Gazeta.ru, Vnukovo’s chairman Vitaliy Vantsev mentioned that the forecast traffic for 2016 stands at 13.5 million passengers, assuming that air connection with Egypt will not be restored this year. For comparison, in 2015, the airport served 15.8 million passengers, showing 24% YOY growth.

The traffic decline trend that started at the end of last year is continuing into this year. Vnukovo’s passenger volumes plunged 36% in January and February, whereas the other two of Moscow’s largest airports, Sheremetyevo and Domodedovo, demonstrated growth in the same period.