Major airlines are facing mounting financial pressure, with industry losses estimated at about £254 million over two days, raising concerns about the risk of insolvency for some carriers.
In Russia, dozens of small and medium-sized airlines are also struggling as economic conditions tighten. According to the country’s aviation authority, Rosaviatsiya, widespread disruptions that began on July 5, 2025, resulted in 485 flight cancellations, 88 diversions to alternate airports, and roughly 1,900 delays at major hubs.
The sector’s financial strain has been compounded by heavy reliance on aircraft leasing, a common practice among carriers seeking to expand fleets without the upfront costs of purchasing planes. Airlines facing liquidity pressures are particularly dependent on leasing arrangements, but many operators have accumulated substantial outstanding obligations tied to foreign-leased aircraft.
Following the imposition of Western sanctions in 2022, a number of Russian airlines stopped making required lease payments, leaving them exposed to significant liabilities. Industry representatives warn that the combination of rising debt, regulatory pressures and potential tax burdens on written-off obligations — expected to be taxed at a higher 25% profit-tax rate from next year — could threaten the operating licences of some carriers.
Leonid Mokhov, chief executive of NordStar Airlines, highlighted the issue in a letter to the Association of Air Transport Operators (AEVT), noting that although many aircraft have been added to the Russian registry and continue operating domestically, lease contracts with foreign lessors technically remain in force until the aircraft are returned or insurance settlements are completed. Airlines, he said, are increasingly focused on preserving cash as they seek to navigate the financial strain.
