Russia: Passenger demand catapults Ural and S7 profits

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 downwards trend of the nation’s aviation market. Such success is a direct result of the demise of Transaero that used to be Russia’s second largest airline a year ago, and growing concentration on local air transport market. Ural Airlines, the country’s fifth largest operator, carried 4.98m passengers, a 17% improvement, between January and September. The increase helped Ural grow its revenues by 3.4% to 690m and double its net income. 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 7.5m and revenues climb by 3.4% to 85.3bn rubles over the same period in 2015. 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.<br/>