Aeroflot sees difference in growth dynamics between Russian and foreign carriers in 2Q2019

Aeroflot deputy CEO for strategy, service and marketing Andrey Panov outlined (Aug-2019) key changes to growth trends in Russia in 2Q2019. Mr Panov noted the difference in dynamics between Russian and foreign carriers became particularly apparent in 2Q2019. Foreign carriers began to reduce capacity and lost 9% of combined traffic and 2.5ppts of the market share, with overall competition decreasing. Foreign carriers reduced traffic by more than 20% in Jun-2019, with the base effect of the 2018 FIFA World Cup being a significant contributing factor. Mr Panov said: "In our opinion, the situation is that foreign carriers cannot compete with Russian airlines on a cost base and the prices and fares they can afford". Mr Panov added while domestic carriers are approaching the domestic market rationally, growth on international routes accelerated, resulting in overcapacity on selected routes. Mr Panov added: "We also see that there is some acceleration in regional expansion". [more - original PR]