Russia’s Airlines See Profit Plunge as Cash Flow Turns Negative

Russia’s passenger airlines are facing a turbulent financial year, with combined sales profit for 29 carriers—responsible for nearly all domestic flights—dropping by nearly half in 2025 to just 31 billion rubles. Worse, their cash flow went into the red, sinking to negative 16 billion rubles, according to data from Russian accounting standards reported by Kommersant.

Half of the carriers managed to stay profitable, posting a combined 61 billion rubles in net gains. But the other 14 airlines ended the year with losses totaling 30 billion rubles. S7 Airlines led the pack in operating profit with 23.6 billion rubles, followed by Ural Airlines at 15.8 billion and Nordwind at 9.8 billion.

Total revenue across the sector rose 7.3% from 2024, hitting 1.925 trillion rubles. And net profit jumped more than fourfold to at least 301.5 billion rubles. But analysts warn that this headline number is mostly an illusion—driven by currency revaluation of assets and a recalculation of lease payments, not actual business performance.

Andrei Kramarenko, a senior researcher at HSE’s Institute for Transport Economics, explained that the negative cash flow largely stems from carriers buying back aircraft from foreign lessors and paying out dividends to major shareholders. Vladimir Chernov, an analyst at Freedom Finance Global, said that once you strip out the paper gains, the core business looks weaker.

Alfa Bank senior analyst Anastasia Yegazaryan added that maintenance costs for aging fleets remain high and will keep climbing, as spare parts grow harder to source and repairs become more complex. Separately, authorities in Udmurtia are looking to sell regional carrier Izhavia and its airport in Izhevsk to shore up the budget.