Russian Air Passengers Afraid Of Future, Aeroflot Hit

Russian consumers are no longer buying airline tickets months in advance, an airport executive said on Wednesday, in the latest sign of consumers losing faith in the economy, air travel and their own financial prospects.

Passenger traffic at Russia's number 2 airport Sheremetyevo fell 17 percent year on year in February, Mikhail Vasilenko, its general director, told reporters. "People don't know what is going to happen, and so they are not buying tickets ahead of time," he said.

His comments came as Russia's largest airline Aeroflot said it flew 15.8 percent fewer passengers in February than in the same month of 2008.

The drop in air travel at the state-controlled carrier was far sharper than the government's forecast decline of 10 to 11 percent for the industry as a whole.

Vasilenko said even for the long holiday around March 8 -- a peak time for travel to celebrate International Women's Day -- tickets were being bought only a week in advance.

He said it had become nearly impossible for aviation companies to plan their own development. "The passengers have lost their trust," he added.

Aeroflot spokeswoman Irina Dannenberg said before the crisis Russians bought tickets two to three months ahead of time, and sometimes as much as six months in advance.

The airline said 100,500 fewer passengers took its flights last month and only 60.6 percent of its seats were filled, 4.5 percent less than in February 2008.

Analysts look at air travel as a sign of whether consumers are confident enough in the future to spend their income now rather than squirrel it away.

With the global financial crisis weighing down on Russia's economy, the public has been hit with rising unemployment and swelling wage arrears, forcing many to reign in spending even on basic needs.

The loss of about 30 percent in the value of the rouble has also made foreign travel to western countries far more expensive for Russians.

Last summer, several mid-sized airlines were brought to the brink of collapse after fuel prices reached record highs.