Russia’s Air Traffic Growing, But Adding Jets Could Prove Risky | Aviation International News

Russia’s Air Traffic Growing, But Adding Jets Could Prove Risky

Financing community, Russian airlines hold divergent views on future growth

By Vladimir Karnozov

May 9, 2017

Despite last year’s period of stabilization in the Russian airline industry following two years of losses, financial experts continue to warn against inclinations toward fleet growth as market fundamentals show little promise of improvement in the overall condition of Russia’s economy. But even while economic indicators show little more than 1- to 1.5 percent GDP growth into the foreseeable future, airline traffic has seen a boost since last October thanks to a recovering tourism industry. In April alone, airline traffic jumped 20 percent. Still, financiers remain cautious, warning major airlines against embarking on the potentially risky policy of luring passengers with low fares in hopes that an improving economy will eventually compensate for the resulting losses.

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