How long can the state prop up failing industries?
The largest airlines in Russia received a record profit against the backdrop of sanctions
The profit of the majority of the leading Russian airlines reached a record ₽88 billion
The total profit of leading airlines reached a record ₽88 billion last year, largely due to subsidies. The industry needs similar support this year, but the Ministry of Finance did not receive motivated justifications for this
Russian airlines look financially successful, but only at first glance.
Despite 144 billion rubles. sales losses, carriers were in record plus in 2022. The total net profit of 27 top passenger airlines in Russia amounted to almost 88 billion rubles. This is 2.8 times more than in 2021.
The best results are from the two largest private air carriers: S7 Airlines (34.4 billion rubles) and Ural Airlines (13.5 billion rubles). And also from the “daughter” of the National Guard “Victory” (15 billion rubles).
Sounds great, but it’s worth considering a couple of flies in the ointment:
- • Airlines received record subsidies in 2022. Only anti-sanction state support for domestic transportation amounted to 100 billion rubles. It turns out that without it there would be a minus . The net profit of some companies is almost entirely formed by subsidies.
- • Aeroflot has not yet shared the results of the year , which in 2021 was the country’s most unprofitable carrier (-45.6 billion rubles). It is quite possible that with its results the total profit will sag.
Therefore, the financial position of Russian airlines does not seem stable. Anti-Russian sanctions have serious negative consequences: an increase in the cost of spare parts that can no longer be purchased directly, a drop in traffic volumes, a restriction on the route network, and many others. Nobody canceled them.
Therefore, it is logical that the AEVT asks to support airlines financially this year as well – to allocate about 100 billion rubles to them again. subsidies for reimbursement of expenses for flights within Russia. Without large-scale state assistance, in 2023 they will hardly be able to achieve the same success as in 2022.
The Ministry of Finance is in no hurry to help. They note that motivated justifications for providing state support this year, by analogy with the past, have not yet been received.
