Russia’s aviation fuel market has a new lease on life as stable oil prices and a stronger domestic currency have resurrected economic growth in the country, signaling positive dynamics for 2017. After several years of shrinking air traffic and demand, passenger numbers on domestic airlines soared nearly 20% to 12.7 million in January and February as more Russians take to the skies. Strikingly, international passenger numbers skyrocketed nearly 30% to 4.8 million over January-February year-on-year, reversing a steep decline in foreign travel in 2015-16 in the wake of the Russian ruble’s collapse. There are storm clouds on the horizon, however. Some economists are predicting that the currency will slide this year on lower oil prices and the generally widespread view among the country’s elite that a weaker currency is better for Russia’s export-oriented economy. Nevertheless, the summer season promises to be a boon for the industry as more travelers head abroad for vacation after confining their trips inside the country.
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