OREANDA-NEWS. Russian airlines suffer record losses due to high prices for jet fuel. For partial reimbursement of costs, they are forced to increase the cost of air tickets. On the instructions of the President, the Ministry of Finance has developed a mechanism for containing prices for aviation kerosene. In order to stabilize the situation, from August 1, the authorities will compensate part of the carrier’s fuel costs. Companies will receive them in the form of a deduction from the excise tax, the size of which will depend on the dynamics of oil prices and the ruble exchange rate, and not in the form of direct budget subsidies.

Compensation can be obtained at a price of kerosene over 48.3 thousand per ton, which corresponds to about $ 70 per barrel of oil. Now it is about 45 thousand. For this, additional oil and gas budget revenues will be used.

In S7, they told the Russian media that they see risks in the implementation of this measure. “The amount of compensation will depend on the level of export alternative, and not on the actual price at which airlines will buy fuel at Russian airports. Airlines' fuel costs will actually be fixed at current high levels”, the company’s press service said.

According to representatives of S7, a more effective measure to reduce the growth of prices for air tickets would be the introduction of a floating excise tax reimbursement rate for aviation kerosene, tied to the current exchange price at the St. Petersburg International Commodity Exchange, the historical exchange price in the Russian Federation and inflation.

According to Aeroflot's Deputy General Director for Commerce and Finance, Andrei Chikhanin, in 2018, 31% of the company's expenses (almost 182 billion rubles) accounted for just fuel, 15% for aircraft leasing and 14% for personnel.