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

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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