Page 128 - RusRPTJan21

9.1.3​ Aviation sector news
In November, demand for flights continued to weaken. In Russia, traffic stood at 5mn PAX, -48% y/y (-39% y/y in October).
According to ​MAA,​ domestic traffic was down 25% y/y, while international fell 85% y/y. In Turkey, traffic was at 4mn, -62% y/y (-58% y/y in October). In Europe, it declined 73% y/y (-69% y/y in October), on our calculations. Overall, the trends reflected the spread of the second wave of coronavirus on the European continent in November. Traffic was also pressured by the seasonally weak demand, so we expect it to remain depressed until March-April, when it might be boosted by countries starting to open their borders.
In Russia, traffic was at 5mn PAX, down 48% y/y. In the largest airports, domestic traffic was down 25% y/y (worse than the -7% y/y in October), while international traffic, at -85% y/y, saw less of a change (vs. -77% y/y in October). Aeroflot’s Group traffic was at 2mn PAX, down 52% y/y (vs. -47% y/y in October). The decline was softer than the industry’s average and the Group gained 5pp market share to 45%, from 40% in October, mainly due to Pobeda, which saw traffic flat (the only large airline, which did not post numbers in the red). Other industry metrics were as follows: fuel prices at RUB31k/t (down 36% y/y) and the average yield down 13% y/y. The latter was partly due to the decline in domestic prices and partly due to there being fewer international flights (which are more expensive, on average).
128 ​RUSSIA Country Report​ January 2021 www.intellinews.com