Russian airline Azimuth nearing bankruptcy – intelligence

Russian airline Azimuth is rapidly approaching bankruptcy.

That is according to Ukraine's Foreign Intelligence Service, Ukrinform reports.

"Russian airline Azimuth is swiftly nearing bankruptcy. In 2025, amid the economic crisis and declining real incomes of the population, the carrier's net profit dropped by 30.9% compared to 2024. Gross losses increased 1.5 times to 2.778 billion rubles, while losses from sales rose by 34.5% to 3.608 billion rubles. Other income decreased by 11.3%," the statement said.

The intelligence service noted that the root cause of the collapse is the systemic degradation of Russia's economy, triggered by the war against Ukraine and international sanctions. Inflation and rising prices have deprived a significant portion of Russians of the ability to purchase airline tickets. As demand falls, the company's revenue is also declining.

The situation is further complicated by Azimuth's technological dependence on imported components. According to intelligence data, the airline's entire fleet – 19 Superjet 100 aircraft – is formally a Russian product but critically dependent on foreign parts.

"Despite the Kremlin's claims of successful import substitution, no effective alternative has emerged: due to sanctions and disrupted logistics, aircraft maintenance has become an extremely expensive and time-consuming task. Each flight increases the company's budget deficit, while the shortage of spare parts turns every trip into a deadly lottery," the Foreign Intelligence Service said.

Basing operations in southern Russia – at airports in Krasnodar and Mineralnye Vody – has become an additional trap. Due to the war, regional airports are either regularly closed or operating under significant restrictions, depriving the company of operational stability.

"The only thing preventing Azimuth's immediate collapse is state subsidies from a budget strained by military spending. In reality, the carrier survives not through commercial transportation but through artificial support from taxpayers, most of whom can no longer afford to fly. Without this support, the company would have ceased to exist much earlier, as it is not financially self-sustaining," the intelligence service said.