Russia’s Utair seeks return to strategic plan from 2022

Russia’s Utair Group is expecting to return to its strategic course from 2022, as the impact of the air transport crisis begins to subside. Utair Group states, in a H1 briefing, that the crisis might “drag on” until the beginning of the peak season of 2021, but that it plans to resume its strategic plans the following year. These plans are focused on improving operational efficiency, with a review of optimal aircraft utilisation models, renewal of the fleet – including cabin reconfiguration – and reduction of aircraft maintenance time. It will develop hub operations at Moscow Vnukovo but also increase the number of regional hubs to bypass the capital. Utair Group adds that it wants to optimise sales channels and fare-control mechanisms, and implement IT tools to centralise purchases. Passenger numbers halved over the first six months, cutting revenues by 44% to Rb14.5b ($193m). The company’s Q1 revenues accounted for Rb10.5b of this figure – indicating a heavy loss of sales for Q2 30 June. Its net loss for the first half reached Rb2.83b, under Russian accounting standards, following a near-Rb1.8b net loss in Q1. Utair says it has responded to the crisis by “drastically” cutting costs including expenditure for fuel, airport services, leasing, and distribution – halving its outlay for these items and reducing pre-tax losses by Rb400m.<br/>