Russian air travel bankruptcies not expected despite 2020 traffic drop

Despite a forecast drop in passenger travel of around 50% this year, Russia’s federal aviation agency said on Thursday it does not expect airport or airline bankruptcies, with the industry ravaged by the ongoing COVID-19 pandemic. Russia grounded flights abroad in March to curb the spread of coronavirus and only began reopening some routes in August, but has gradually added more destinations to the list. During a lockdown period in the spring, some airlines saw traffic fall as much as 90%. “We currently do not expect bankruptcy of airports or airlines, although the financial situation is quite difficult,” said Rosaviatsiya’s deputy head Alexei Novgorodov. As the industry watchdog, Rosaviatsiya monitors airlines’ financial state and may have additional information on the likelihood of the industry receiving state support packages. The government distributed 23.4b roubles of state funds to airlines suffering losses back in May. Novgorodov said Russian airlines would miss out on around half the number of passengers in 2020, compared with a year previously. Preliminary Rosaviatsiya data showed passenger traffic fell by 46.1% to 59.44 million people from January to October.<br/>