24 Jun 2022 15:28

Russian airlines post record operating losses for last 8 years in Q1 2022 - transport association

MOSCOW. June 24 (Interfax) - Russian airlines posted record operating losses for the last eight years totaling 61.1 billion rubles in Q1 2022, as calculated by Russia's Association of Air Transport Operators (AEVT).

"Overall losses for the operating activities of all airlines totaled 61.1 billion rubles in the first three months of 2022, with passenger airlines 52.5 billion rubles in the red, and cargo airlines 8.6 billion rubles in the red. The first-quarter results are the worst for the last eight years," according to the report of AEVT's president, Vladimir Tasun, delivered to the association's general meeting and published on its website.

Total operating losses for the specified period were estimated at 33.3 billion rubles in 2021 and at 55.5 billion rubles in the pandemic year of 2020.

"It is difficult now to predict how the financial and economic stability of airlines will worsen in the future. We hope that the measures taken by both the Russian government and the airlines themselves will ensure stable operation of the domestic air transport industry in the near term," Tasun said in the report.

The Russian aviation industry has been one of the hardest hit by the sanctions imposed against Russia. The European Union countries, Britain, the United States, and Canada closed their respective airspace to Russian air carriers following the launch of Russia's military operation in Ukraine. Eleven airports in the south and central areas of Russia have been closed since February 24 for security reasons. Western countries have also ceased supplying civil aircraft and spare parts, and have required the lessors to return already leased airliners from Russia.