Sanctions that have hit Russian aviation, cutting off carriers from repairs and aircraft parts, have led to a significant surge in airfare prices in Russia.
According to data from Rosstat, in 2023, the cost of an economy class ticket per thousand kilometers of flight increased by 24.5%, as reported by The Moscow Times.
The rise in airfare prices is unprecedented since 2008 when, amid the global financial crisis and the collapse of the ruble, carriers raised prices by an average of 33.5%.
Nearly two years after the full-scale invasion of Ukraine, air tickets in Russia have become 48.4% more expensive, and last year witnessed an acceleration in price growth, reaching 19.2% in 2022.
Initially, substantial injections from the budget helped restrain prices for passengers: last year, the government allocated 170 billion rubles to subsidize ticket costs for carriers. However, the effect of budgetary funds waned last summer, prompting airlines to pass on increased expenses to consumers, according to experts.
Companies’ expenses are rising as it becomes increasingly challenging for them to find spare parts for the repair of liners, which are experiencing failures one after another. According to Rosaviatsiya data for January-November of the previous year, the country saw 670 aviation accidents, with 400 related to equipment failures, including engines. Since the beginning of 2024, at least seven planes from Russian airlines have experienced malfunctions during flights.
The increased costs of airlines are also linked to the need for import substitution of spare parts. Specifically, the expenses of a major airline for fuel increased by an average of a quarter, and for the maintenance of the aircraft fleet, they doubled.
Analysts emphasize that the revival of the aviation industry in Russia is impossible without new aircraft. However, it is not possible to buy Western planes, and the domestic aircraft production program is lagging. “Ambitious plans require rebuilding Russian aviation industry from scratch, producing more than 100 planes annually. But in reality, in 2023, the factories were only able to assemble two civil liners,” they say.
All of these factors leave little room for the reduction of prices for passengers: air tickets will continue to become more expensive. The forecast for 2024 is an increase of at least 10%.
