Russia’s second-largest airport on brink of bankruptcy

According to the airport’s new CEO, Andrey Ivanov, Domodedovo’s total debt has reached 70 billion rubles, including 34 billion rubles and $450 million dollars. In 2025, interest payments alone will amount to 8 billion rubles.

Talks with creditors are currently underway to restructure the debt. Authorities have also allowed tax liabilities to be redirected toward salary payments.

"The debt was caused by a decline in passenger traffic and revenue, increased losses, and a failure to cut expenses or improve operational efficiency," Ivanov explained.

In 2023, the airport's passenger traffic amounted to almost 20 million people, but in 2024, the figure fell to 15.5 million. This year, it may decline by another 2 million, Ivanov noted. Currently, Domodedovo's passenger traffic is at least half of its capacity.

The top manager also noted a steady drop in revenue: 34 billion rubles in 2023, 31 billion in 2024, and a projected 30 billion this year.

Losses amounted to nearly 7 billion rubles in 2023, 7.2 billion in 2024, and are expected to rise to 10 billion this year.

Ivanov added that the group’s current accounts payable total about 650 million rubles, with a similar amount owed in unpaid wages.

According to the report, the key assets of Domodedovo International Airport were owned by DME Holdings LLC.

Russia’s Prosecutor General’s Office accused the airport’s main beneficiaries, Dmitry Kamenshchik and Valery Kogan, of funneling profits abroad while being residents of other countries. Following a court ruling, Domodedovo was nationalized.

Russian passenger aviation faces potential collapse

Ukraine’s intelligence service has warned that Russia’s passenger aviation sector could face a complete collapse by 2027.

According to the assessment, the crisis in the industry is deepening, primarily due to Western sanctions. These sanctions have cut Russian airlines off from international maintenance services for Boeing and Airbus aircraft.

As a result, maintenance costs have surged by 38%, and nearly half of Russia’s Airbus fleet is no longer operational. For example, Russian airline S7 reportedly has only 8 out of its 39 Airbus A320/321 aircraft still in service.

Since the beginning of 2025, Russian airports have suspended operations 455 times, and aircraft have had to be diverted to backup airports on more than 700 occasions.

During a major disruption between July 5–7 alone, airline losses exceeded $250 million. In response, carriers sharply increased ticket prices to offset the losses.