Passenger demand catapults Ural and S7 profits

Ural Airlines carried 4.98 million passengers, a 17% improvement, between January and September (Photo by Fyodor Borisov / Transport-Photo.com)

A dramatic increase in passenger numbers has resulted in some of Russia’s leading airlines’ achieving millions of dollars in additional revenue and profits in the first three quarters of 2016, reversing the overall downward trend of the nation’s aviation market. Such success is a direct result of the demise of Russia’s former second-largest airline Transaero, as well as growing concentration on local air transport market.

Ural Airlines, the country’s fifth largest operator, carried 4.98 million passengers, a 17% improvement, between January and September. The increase helped Ural increase its revenues by 3.4%, to 44.7 billion rubles (about $690 million) and double its net income to 3.3 billion rubles.

During the period, Russia’s second largest carrier, S7 Airlines, grew its net income by a multiple of 3.8 to 2.9bn rubles. It saw passenger numbers increase by 19%, to 7.5 million, and revenues climb by 3.4%, to 85.3bn rubles, over the same period in 2015.

Ural and S7 Airlines are not the only airlines currently enjoying exceptional growth in the Russian aviation market. 

The net profits of national flag carrier Aeroflot increased almost six-fold, whilst UTair, currently Russia’s fourth leading airline, managed to break even as both airlines saw passenger numbers climb.

The solid financial achievements of these carriers remains in stark contrast to the majority of other Russian aviation companies’ current performances which have continued to struggle in recent months.