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S7 Airlines Reports Decline in Passengers but Growth in Business Class for 2025

January 26, 2026By ePlane AI
S7 Airlines Reports Decline in Passengers but Growth in Business Class for 2025
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S7 Airlines
Business Class Growth
Airbus A320 Family

S7 Airlines Reports Decline in Passengers but Growth in Business Class for 2025

Passenger Traffic and Market Position

S7 Airlines, operating under the Sibir Airlines brand, announced a slight decline of 0.8% in total passenger numbers for 2025, transporting 12.8 million travelers. This marks the second consecutive year of reduced traffic for the carrier. Despite this downturn, S7 retained its status as Russia’s largest private airline and the third-largest carrier in the country overall. A significant highlight of the year was a 32% increase in business class passengers, signaling a strategic shift towards premium travel segments within the industry.

Strategic Shift Towards Premium Travel

The growth in premium traffic is attributed to S7’s deliberate reconfiguration of its Airbus A320 family cabins, where some economy seats were replaced with business class accommodations. This adjustment reflects a wider global trend, with major airlines such as Delta and United Airlines similarly expanding their premium offerings. For instance, premium cabins now generate 60% of Delta’s revenue. This shift comes as airlines prepare for anticipated economic challenges in 2026, which are expected to disproportionately affect price-sensitive travelers and carriers heavily reliant on economy-class sales. Ultra-low-cost carriers like Spirit Airlines are forecasted to face significant difficulties, with some analysts predicting potential mergers or liquidations within that segment.

Network Expansion and Operational Focus

S7’s 2025 strategy emphasized resilience and quality investment. CEO Dmitry Kudelkin highlighted the deliberate development of the airline’s hub structure, expansion of the network on high-demand routes, and maintenance of fleet capabilities. The Novosibirsk (Tolmachevo) hub remained central to operations, handling nearly 7 million passengers—more than half of the airline’s total traffic. Moscow’s Domodedovo hub processed 4.9 million passengers, while Irkutsk served 1.9 million. The airline expanded its route network by adding 13 new destinations, including connections from Vladivostok to Bangkok, Irkutsk to Gorno-Altaysk, and Novosibirsk to Krasnodar. Overall, S7 operated approximately 100,000 domestic and international flights, maintaining a level consistent with 2024.

Maintenance and Customer Experience Enhancements

Fleet reliability continued to be a priority for S7. Its engineering division, S7 Technics, completed 100 engine repairs and 83 heavy maintenance C-checks during the year. The company also inaugurated the second phase of its aircraft engine repair facility at Moscow’s Sheremetyevo Airport. On the customer experience front, S7 introduced a new collection of cabin crew uniforms, reflecting ongoing efforts to enhance service quality.

Industry Context and Outlook

S7’s performance occurred against a challenging backdrop for the aviation sector. Russia’s overall air passenger traffic declined for the first time since 2022, while Vienna Airport projected fewer travelers due to capacity reductions by Ryanair and Wizz Air. These developments highlight a growing industry focus on premium travel as airlines seek to mitigate economic pressures and adapt to shifting consumer preferences.

Looking forward, S7 Airlines’ strengthened business class segment and hub-centric strategy position the carrier to navigate an increasingly competitive and premium-oriented market, even as broader economic uncertainties persist.

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Airlines Use AI to Manage Flight Disruptions Amid Storm

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SMBC Aviation CEO Calls on Airbus to Address Supply Chain Challenges

SMBC Aviation CEO Calls on Airbus to Address Supply Chain Challenges

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US Group Raises Concerns Over Air India Boeing 787 Safety

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Chicago O’Hare Surpasses Atlanta as Busiest Airport by Flights

Chicago O’Hare Surpasses Atlanta as Busiest Airport by Flights

Chicago O’Hare Surpasses Atlanta as Busiest U.S. Airport by Flights Preliminary data from the Federal Aviation Administration (FAA) for 2025 reveals that Chicago O’Hare International Airport has overtaken Hartsfield-Jackson Atlanta International Airport as the busiest U.S. airport in terms of total aircraft operations. O’Hare recorded 857,392 takeoffs and landings throughout the year, marking a more than 10.5% increase compared to 2024. This figure surpasses Atlanta’s 807,625 flights by over 50,000 operations, signaling a significant shift in the national aviation landscape. Surge in Air Taxi Operations Drives Growth at O’Hare The primary factor behind O’Hare’s rise is a substantial increase in “air taxi” flights, which include short-distance trips frequently utilizing electric vertical takeoff and landing (eVTOL) technology. Chicago has seen rapid expansion in this sector, with O’Hare reporting 79,234 air taxi operations in 2025, compared to just 25,475 at Atlanta. This growth is closely linked to the introduction of new eVTOL routes, such as Archer Aviation’s service connecting O’Hare to Chicago’s West Loop. This route enables passengers to travel between the airport and downtown Chicago in approximately 10 minutes, exemplifying the airport’s embrace of innovative air mobility solutions. Despite losing the lead in total aircraft movements, Hartsfield-Jackson Atlanta International Airport remains the busiest in terms of passenger traffic. In 2025, Atlanta recorded 792,785 commercial passenger and cargo airline flights, slightly outpacing O’Hare’s 774,921. Additionally, Atlanta maintained higher numbers in military and general aviation operations, underscoring its continued prominence in other aviation sectors. Intensified Competition Among Airlines at O’Hare The surge in flight activity at O’Hare has heightened competition among airlines operating at the airport. In response to O’Hare’s growing importance, American Airlines announced plans to increase its flight offerings by 100 additional flights to over 75 destinations in 2026. This move highlights the ongoing rivalry between American Airlines and United Airlines as they vie for dominance at one of the nation’s most critical aviation hubs. The FAA is expected to release official consolidated data, including final passenger counts for each airport, later this year. For now, Chicago O’Hare’s ascent reflects both the rapid adoption of emerging air mobility technologies and the shifting dynamics among major U.S. airports.
Skyportz identifies Delhi as key location for air taxis

Skyportz identifies Delhi as key location for air taxis

Skyportz Identifies Delhi as a Strategic Hub for Air Taxi Deployment Skyportz, a leading developer of modular vertipad infrastructure, has identified Delhi as a pivotal location for the expansion of air taxi services in India over the next two decades. The company highlights the capital’s extensive commuting distances, heavy dependence on road transport, and increasing affluence as critical factors that position Delhi as an ideal market for urban air mobility. These conditions, combined with the potential for low operating costs, make the city a prime candidate for the adoption of air taxi networks. Projected Growth and Market Potential According to Skyportz’s forecasts, Delhi could witness approximately 40 million passenger air taxi trips annually by 2045, contributing to an estimated 200 to 250 million trips nationwide. This surge in demand is expected to generate passenger revenues ranging from USD 2 billion to 2.5 billion across India, with Delhi alone accounting for around USD 400 million. The company envisions the establishment of between 10,000 and 15,000 vertipads throughout the country, including 2,200 within Delhi itself. Clem Newton-Brown, CEO of Skyportz, emphasized the scale of the opportunity, stating, “Delhi’s numbers make one thing clear: this is not a small boutique market. Our modelling points to thousands of vertipads, tens of millions of passengers, and sustained long-term infrastructure demand. That scale requires modular, affordable systems designed for networks such as the Aeroberm. With Delhi as a lead market, India has an opportunity to help shape how city-scale advanced air mobility (AAM) infrastructure is deployed. We look forward to working with the DGCA and local air taxi developers.” Challenges and Competitive Landscape Despite the promising outlook, Skyportz faces significant challenges in realizing its vision for Delhi. Regulatory complexities, the need for extensive infrastructure development, and competition from established players such as Vertical Aerospace and Archer Aviation present formidable obstacles. As the urban air mobility sector gains momentum, these dynamics are likely to attract increased interest from investors and potential customers, while competitors may accelerate their own vertiport network expansions and enhance air taxi services to secure market share. Addressing concerns related to noise pollution and safety remains a critical priority. These issues have already sparked debate in other major cities like New York and Los Angeles. Skyportz’s Aeroberm system—a modular vertipad designed specifically for high-density urban environments—aims to facilitate rapid installation while effectively managing downwash safety, noise levels, and operational performance. Robert Bassey, former FAA national lead for vertiport design, underscored the importance of regulatory compliance, noting, “Having worked inside the FAA, I understand what regulators need to see before new infrastructure can scale—clear performance evidence, defined operating assumptions, and a credible inspection and lifecycle framework. Our focus at Skyportz is on building a modular vertipad product that can be evaluated consistently across markets and accepted by regulators worldwide. India is a critical advanced air mobility market, and I look forward to constructive engagement with DGCA and industry as safe, scalable frameworks continue to take shape.” Implications for Urban Air Mobility in India As Delhi emerges as a focal point for air taxi innovation, the city’s approach to regulatory, infrastructural, and community concerns will play a decisive role in shaping the future of urban air mobility across India. The successful integration of air taxi services in the capital could set a precedent for other metropolitan areas, influencing the broader trajectory of advanced air mobility in the region.
Southwest Airlines Completes Cabin Reconfiguration of Boeing 737-700s

Southwest Airlines Completes Cabin Reconfiguration of Boeing 737-700s

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Airbus Says US-China Trade Tensions Impact Aircraft Production

Airbus Says US-China Trade Tensions Impact Aircraft Production

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