Travel retail and duty free operators are set to benefit from a turnaround in Russia’s air passenger traffic, with new figures appearing to suggest it is generating substantial pace.

Depressed Russian numbers have only added to inflate pressures in a market impacted by current global economic volatility, currency devaluations, the impact of terrorism in Europe and geopolitical tensions in Asia.

However, recent civil aviation enterprise data from Russia’s Federal Air Transport Agency Rosaviation reveals Russia carried 58,121,159 passengers between January to July this year  – a remarkable increase of +120% when compared to the same period in 2016.

In July alone, passenger figures grew by +117% year-on-year to hit 11,880,507, the data reveals.

INTERNATIONAL PAX SPIKE

Notably, traffic volumes through Russia’s busiest Moscow hubs at Sheremetyevo, Domodedovo and Vnukovo grew their shares of commercial passenger traffic by 117%, 110% and 139%, respectively, between the period January to June year-on-year.

In turn, total flight traffic from Russian and foreign airlines into the Russian Federation’s airspace increased by 7.9% in the first seven months of this year to total 852,820, with the number of international flights increasing by 12.8% to 441,300.

Among Russia’s top three airlines, Pulkova-hubbed Rossiya Airlines registered the highest growth in passenger turnover, handling 4,936,217 between January to June year-on-year (+166.9%), followed by flag carrier Aeroflot at 15,245,572 (+113.5%) and S7 (Siberia) Airlines at 4,431,187 (+102.4%).

The rebound this year is supported by recent research from Counter Intelligence Retail (CiR), with scheduled international departure pax numbers to May showing growth of +25% to 17m.

This result registers Russia as the fastest growing country in Europe’s top 10 for international passenger traffic, with Portugal the only other country to record double-digit growth at +21%.

Leading the growth in international traffic is hub Sheremetyevo, which has grown its share of passenger numbers by 19% year-to-date to almost 8m.

“September 2016 signalled the green shoots of recovery with passenger numbers recording an actual YoY growth for the first time since July 2014,” says CiR. “Since then, average monthly growth in international traffic has been at +17%, hitting a peak in April this year at +29%.”

The downing of a fighter jet in 2015 saw the Kremlin issue a blanket ban on all charter travel to Turkey, but with relations now thawed, operations resumed in 2016, CiR outlines.

Istanbul Atatürk Airport remains a key destination for traffic, alongside Antalya, with seat capacities in treble-digit growth year-on-year, the firm adds.

DUFRY BOOST IN TURKEY…

CiR says the return of the ‘key’ Russian traveller market spells relief for retailers in Turkey such as Dufry.

The travel retailer notes in its HY1 results that Russian travellers’ impact on operations in Russia, Greece and Turkey helped to drive organic growth by 8.9% in Q2.

Meanwhile, international traffic to other countries such as China could see the growth level extend beyond 25% this year.

CiR President, Garry Stasiulevicuis comments:“It’s fantastic to see this recovery, and has been long awaited in the industry. There’s a renewed interest in the Russian passenger and we’re looking forward to sharing fresh insight from our latest nationality research shortly, where we look in depth at the needs and expectations of the Russian Traveller and Shopper.”

As reported, big data travel retail analyst air4casts is predicting an international pax rise of +6.4% in August, with Russia and Mexico set to top the growth league tables.