The national air transportation market continued to grow in the first quarter of 2016. For example, Ukrainian airline companies increased transportation of people by 11% and airports provided services for 9% more passengers compared to the first quarter of last year.
“The transportation volume of Ukrainian airline companies increases for the third quarter in a row after falling by 30% in 2014 – early 2015. Today we can say that the air transportation market climbed out of the deep,” the expert of the Transport sector of the Better Regulation Delivery Office (BRDO) Sergiy Khizhnyak said.
In his words, the main growth driver is the implementation of the international hub concept at the Boryspil airport. Due to the cooperation of the airport with the airline company “International Airlines of Ukraine”, now up to 30% of their passengers are foreign citizens who make international transfer flights.
However, there are structural changes in the market. According to previous year results, the largest Ukrainian airline company “International Airlines of Ukraine” increased its passenger traffic by 26% and its share in the passenger traffic structure increased to 77% (it was 57% in 2013). And it happens when several other Ukrainian airline companies stopped their flights or reduced the number of flights significantly.
The percent of the main air harbor of Ukraine – the international airport “Boryspil” – increased up to 68% compared to 52% in 2013. The number of served passengers mostly decreased at regional airports.
“Despite this, it is too early to say about fundamental changes in the airline market. Today, the air transport is still not available for most of Ukrainian citizens,” the expert said. According to him, the growth of passenger traffic will happen together with the economic recovery and increasing in effective demand of the population.
Most likely, it will happen during the next 4-5 years and now the reduced income of the Ukrainians and pessimistic expectations hinder the development of airline transportation.