In 2023, the Russian passenger transportation industry achieved operating profit

As Kommersant calculated, in 2023 the Russian passenger transportation industry as a whole returned to operating profit after a loss of more than 100 billion rubles. in 2022. This figure was achieved despite a sharp reduction in the “anti-sanction” subsidy for domestic transportation. The total net profit of the largest airlines amounted to 85.3 billion rubles, slightly decreasing compared to 2022. Experts admit that such indicators are largely explained by the one-time positive effect of the settlement on foreign aircraft, and with an increase in aircraft maintenance costs by 70–80%, the situation remains difficult.

The operating profit of 32 Russian airlines, which account for almost 100% of passenger traffic, in 2023 turned out to be positive and amounted to 13.2 billion rubles, follows from the RAS reporting analyzed by Kommersant. This indicator reflects profit from air ticket sales and does not include government subsidies and other one-time factors. Of these, 12 airlines turned out to be profitable, receiving a total of 65 billion rubles, and 17 companies were unprofitable (a total of 56.2 billion rubles). For comparison, in the crisis year of 2022, the industry received a total of about 100 billion rubles. operating loss: 13 airlines received 34 billion rubles. profits, but the rest – 134 billion rubles. loss.

The net profit of Russian airlines for 2023 amounted to 85.3 billion rubles. against 89 billion rubles. a year earlier. 24 airlines made a profit (27 in 2022). For comparison, in pre-crisis 2019, net profit amounted to 20 billion rubles. The net profit figure for 2022 looks significantly better than the operating profit figure, due to the government’s anti-crisis subsidy of 100 billion rubles, which in 2023 was reduced to 25 billion rubles.

The majority of net profit in 2023 was generated by 12 carriers, including Pobeda (RUB 21.3 billion), S7 (RUB 21 billion) and Ural Airlines (RUB 17 billion). They are followed by RedWings (4.3 billion), Utair (3.4), Aurora (3.4) and Smartavia (3.4). Azimuth received 2.1 billion rubles. arrived. Charter companies NordWind and Ikar have 1.7 billion and 1.8 billion, respectively, NordStar has 1.6 billion. North-West closes the list: 1.5 billion.

The largest losses under RBSU were suffered by Aeroflot (RUB 29.5 billion) and Rossiya (RUB 31 billion). This loss contains a significant “paper” effect: according to Aeroflot estimates, excluding the impact of exchange rate revaluations, the company’s net profit amounted to 50.4 billion rubles. compared to an adjusted net loss of RUB 40.4 billion. for 2022. The charter company iFly suffered a loss of 5.1 billion, which was unable to obtain funds to buy the planes and has been flying around the Russian Federation since 2022. Yakutia suffered a loss of 1.7 billion rubles.

In 2023, airlines’ net profits increased due to one-time effects from the re-registration of Western aircraft into Russian ownership. Pobeda clarified that its net profit for 2023 was “entirely formed by additional income in the amount of 21.27 billion rubles. due to the successful insurance settlement of liabilities on 12 aircraft.” Ural Airlines told Kommersant that more than half of the net profit was obtained through a settlement deal for 19 aircraft. As follows from S7 reporting, the carrier wrote off 27 billion rubles. accounts payable after settling issues with foreign lessors.

Last year was very successful for airlines, notes Elena Sakhnova, author of the My Investments channel. This was facilitated by the re-registration of the aircraft into Russian ownership, which made it possible to put them on foreign flights with high profitability. Some carriers do not pay for leasing, which allows them to probably use these funds in their current activities. Finally, increased damper compensation for jet fuel had a positive impact.

Indicators for 2024, as Elena Sakhnova believes, will be “at least no worse” for the industry than last year due to the forecast for an increase in nominal wages of 15–17%, and passenger traffic will continue to grow. Ticket prices will continue to increase at least in line with inflation due to rising maintenance costs.

Carriers’ costs under this item have increased significantly: Aeroflot, in its IFRS reporting, recorded an increase of 82%, to 23 billion rubles. Ural Airlines told Kommersant that operating costs for maintenance and repair of the fleet increased by 72%. “Based on the results of the first quarter of 2024, compared to 2023, expenses for this item increased three times,” they added. S7 expenses in 2023 increased by 67%, to RUB 30.2 billion. The company clarified that in 2022–2023 they invested 20 billion rubles. in the development of the engineering block.

In 2022, the market was able to adapt to new realities thanks to subsidies, notes Alexander Gushchin from ACRA: “In 2023, subsidies began to decline, which, as expected, was reflected in rising ticket prices.” Consumers were ready for tariff increases, notes the head of AviaPort, Oleg Panteleev. He explained that since 2022, a number of new consumer groups have emerged, whose incomes have grown exponentially, but purchasing power may be limited by inflation. Companies actually have no reserve left for revenue growth due to approaching the limit on seat occupancy, he notes: carriers will focus on increasing the profitability of flights “according to the principle of ‘less is better, but more expensive’.”

Aigul Abdullina