The cost of passenger flights abroad during the winter period increased by 6-10% due to the weakening of the ruble. This follows from the data on the internal exchange rate of the International Air Transport Association (IATA), which was analyzed by Izvestia.
According to this rate, all settlements between the participants of the air transport market are carried out. Its change directly affects the price of tickets for international flights of Russian airlines, as well as for flights of foreign carriers, Biletix told Izvestia.
The cost of flights between countries is denominated in foreign currency, and the fare in rubles is formed on the basis of IATA rates, added Sergey Zaitsev, junior partner of Bain&Company.
Tariffs on international flights depend on the ruble exchange rate, as carriers have foreign exchange costs. If the exchange rate drops, the price will fall, and if it increases, it will rise, a source in one of the major Russian airlines told Izvestia.
For three months of currency fluctuations, prices for flights abroad have risen to 10%, Dmitry Gorin, vice president of the Russian Union of Travel Industry (PCT) and chairman of the board of directors of the VIP Service holding, confirmed to Izvestia.
The determining factor in the share of foreign currency in the total volume of income and expenses of airlines is the geography of flights: the more international destinations in the company’s portfolio, the higher the share of foreign exchange earnings and the less the negative impact of the growth of the exchange rate, Vera Gasnikova, press secretary of Ural Airlines, told Izvestia.
“At the moment, when most international destinations remain under significant restrictions, the share of foreign exchange expenses exceeds the share of revenue denominated in foreign currency. Accordingly, airlines bear significant risks,” she added.
Other major Russian airlines did not respond to Izvestia’s requests.
Read more in the exclusive Izvestia article:
Exchange rate: flights abroad have risen in price due to the weakening of the ruble
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
