Russian airlines report RUB24bn Q1 losses

BTN News
Monday, 18 July 2016

Russian airlines have announced operating losses of RUB24 billion for Q1 2016, via Vladimir Tasun, president of the Russian Association of Air Transport Carriers.


He told media “figures appeared dismal” and the poor performance came from negative factors including the economy and terrorism.


Commercial flights to Egypt were cancelled after the bombing of flight A321 over the Sinai desert in November last year and all commercial flights between Ukraine and Russia also were cancelled, while charter flights to Turkey were cancelled after a Russian jet was shot down by Turkish forces on the border with Syria. (Turkey services are set to resume following an apology from Turkish president Recep Erdogan.)


The falling ruble has also caused many Russian holidaymakers to choose domestic stays, while the 2015 closure of Russia’s largest private airline Transaero also contributed.


Losses on domestic routes totalled RUB25 billion in Q1, while profits on international routes were RUB1.5 billion.
Experts say airliners need to raise ticket prices and reduce surplus energy supply and overhead costs in order to stage a turnaround.

Russian airlines report RUB24bn Q1 losses

BTN News
Monday, 18 July 2016

Russian airlines have announced operating losses of RUB24 billion for Q1 2016, via Vladimir Tasun, president of the Russian Association of Air Transport Carriers.


He told media “figures appeared dismal” and the poor performance came from negative factors including the economy and terrorism.


Commercial flights to Egypt were cancelled after the bombing of flight A321 over the Sinai desert in November last year and all commercial flights between Ukraine and Russia also were cancelled, while charter flights to Turkey were cancelled after a Russian jet was shot down by Turkish forces on the border with Syria. (Turkey services are set to resume following an apology from Turkish president Recep Erdogan.)


The falling ruble has also caused many Russian holidaymakers to choose domestic stays, while the 2015 closure of Russia’s largest private airline Transaero also contributed.


Losses on domestic routes totalled RUB25 billion in Q1, while profits on international routes were RUB1.5 billion.
Experts say airliners need to raise ticket prices and reduce surplus energy supply and overhead costs in order to stage a turnaround.