Thirty Russian airlines face the threat of bankruptcy
13 November 10:43
Russian airlines are experiencing serious financial difficulties due to debts for leasing foreign aircraft. About 30 small and medium-sized carriers, which account for 26% of passenger traffic within Russia, are at risk of bankruptcy, reports Komersant ukrainskyi citing Russian media.
Since 2022, most of these companies have stopped making lease payments due to sanctions. However, in 2025, they face a 25% income tax on written-off debts, which could be a heavy burden for these companies.
Russian airlines are now asking the government to amend the Tax Code to avoid this tax. The Association of Air Transport Operators (AEVT) supports the carriers’ initiative and is working with them to develop proposals for changes in the legislation. According to industry representatives, the tax on written-off debts can significantly worsen the financial situation of companies and lead to the revocation of their certificates of operation of aircraft. Such a step could lead to a redistribution of aircraft in favor of large airlines, which will have more opportunities to pay the tax and maintain their fleets.
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Lawyers point out that writing off leasing debts may become possible after the statute of limitations expires in 2025. Due to the Russian President’s decree to pay for leasing exclusively in rubles, foreign lessors cannot file lawsuits in Russian courts. However, the tax code still requires the payment of tax on written-off debts, which is a concern for carriers.
According to experts, another problem is that airlines are forced to spend money on repairing and maintaining aircraft in a state of flight readiness, which costs them much more than before. This additional financial burden is already affecting their profitability. The cost of spare parts and work has increased significantly due to the sanctions, and some necessary forms of maintenance are not available in Russia at all.
Meanwhile, some Russian airlines, such as Aeroflot and S7 Airlines, have been able to buy back some of their leased aircraft through the National Welfare Fund, which reduces their risks. However, for many medium and small airlines, debts remain a threat, and the introduction of the 25% tax may force some of them to cease operations.
