Financial Stability of the Russian Airlines in Conditions of the Economic Turbulence

In conditions of the macroeconomic and geopolitical instability the aircraft industry companies are amongst the first to face difficulties. Since the beginning of the 21st century, the Russian airlines have had to face three serious economic crises and are now living through the fourth. Even in normal economic conditions, airlines often become bankrupt, which highlights the relevance of researching methods of ensuring the financial stability of their activities. The article seeks to assess the dynamics of the financial condition of the largest Russian airlines, to identify the stability of such dynamics, and to detect the internal factors that restrain the growth of the financial results of airline companies. The article contains the usage of statistical methods of analysis for assessing the industry-specific indicators of airlines, as well as two bankruptcy likelihood prediction models – that of Altman and Taffler. The assessment of the financial stability of the airlines allows us to conclude that the level of financial condition has decreased in crisis years; what is more, the changes of this level are unstable and are multidirectional in dynamics. Low liquidity and profitability and a high debt load – these are the key straining factors in guaranteeing an acceptable level of financial stability. The conducted analysis of the nature of the financial stability of airlines in dynamics contributes to the existing literature.