The Russian Ministry of Transport has indicated that there will be no expansion of subsidies for domestic airline services before the next year. This was conveyed by Deputy Head of Department Igor Chalik in response to questions from journalists at the Russian Transport forum. The update was relayed by TASS, the state news agency.
“Most likely, no,” the ministry representative was quoted as saying, when asked about extending support for airlines beyond current arrangements.
Nevertheless, the ministry underlined that subsidies tied to socially important routes will continue to operate. These include subsidies for regional flights as well as services to Kaliningrad and the Far East. There is also a possibility that subsidies for airports situated in central and southern Russia could be renewed in 2024 if operations remain disrupted for an extended period.
Over the previous two years, Russian carriers received more than 125 billion rubles to offset operating costs on domestic routes. Earlier statements from the Ministry of Transport indicated that any extension of such support would hinge on the carriers’ financial and economic conditions.
Data on air travel volumes this year show robust demand for flying among the population. The ministry’s press service noted that from January through October 2023 Russian airlines transported around 90 million passengers, which is roughly 3 million above the targeted figure for this period. Based on current projections, passenger traffic for the full year 2023 is expected to reach around 103–104 million travelers.
Economist Andrey Loboda suggests that ticket prices for flights within Russia could rise by about 30 percent, given the evolving cost structure and the prevailing market conditions. This outlook reflects ongoing considerations about the balance between government support and market-driven pricing for domestic air travel.
Earlier reports also touched on the challenges faced by the aviation sector, including disruptions and their potential impact on service levels and safety planning across networks. Industry observers emphasize the importance of stable funding for essential routes to maintain connectivity across remote and economically significant regions.
Market participants and policymakers continue to monitor passenger demand trends, operational costs, and regional accessibility as they assess the sustainability of subsidies and the overall health of the domestic aviation market in the coming year.