Around the aviation sector in Russia, there is a push from air carriers to be relieved from paying an additional tax, along with the usual profit tax, arguing that the industry has never been highly lucrative. The assertion comes amid discussions about new fiscal measures, with sources citing Viktor Sakharov, the Deputy Chief Accountant for Tax Accounting at UTair Aviation, as a key voice in the debate.
At a major industry gathering in St. Petersburg, Sakharov stated that the sector does not generate strong margins, urging authorities to consider an exemption from the proposed extra levy. He emphasized that aviation profits have historically been modest, and that the sector’s financial results are fragile enough that an additional tax could bite deeply into already thin returns.
He explained that profits derived from last year’s government subsidies are earmarked for ongoing fleet maintenance, the procurement of spare parts, and other critical upgrades. This financial behavior is not incidental: it reflects a strategic stance supported by the Association of Air Transport Operators (AEVT), which unites Russia’s leading airlines. Sakharov serves as the head of the tax committee within this association, lending weight to the coalition’s position.
According to the estimates cited by Sakharov, the average profitability of the aviation sector in Russia has rarely exceeded 2 percent, and in recent years has effectively ranged from near zero up to about 1 percent. This narrow band underscores the pressure that tax increases could impose on airline balance sheets, asset maintenance programs, and long-term fleet modernization plans.
The discussions underscore a broader concern among industry players: a dynamic market environment, high operating costs, and the heavy capital commitments required to keep fleets compliant, safe, and technologically up to date. Stakeholders argue that maintaining liquidity and flexibility is essential for weathering market volatility, especially as global travel patterns continue to shift in response to external factors. The debate continues as policymakers weigh revenue targets against the practical needs of carriers that serve domestic routes and international corridors alike.
Industry representatives caution that any policy shift should be assessed for its ripple effects—from ticket prices and passenger demand to suppliers and maintenance networks that rely on steady investment. In this context, the ongoing dialogue aims to strike a balance that preserves the viability of Russia’s aviation infrastructure while ensuring budgetary health for the broader economy.