Ukraine International Airlines Part 1: expanding rapidly as Kiev emerges as hub for transit traffic

Ukraine International Airlines (UIA) has begun a new phase of rapid expansion aimed at improving its position as a network airline with a high reliance on transit traffic. The flag carrier plans to double the size of its fleet over the next five years, while also phasing out ageing 737 Classics and 767s.

UIA's passenger traffic has grown 50% since 2013, despite turmoil in the Ukrainian market. The overall market declined significantly in 2014 and is still not back to 2013 levels.

UIA is expecting to grow by 25% to 26% in 2017, and by at least 15% per annum over the next several years. Transit traffic, which now accounts for half of UIA's overall traffic, will continue to drive most of the expansion as growth opportunities in the local Ukrainian market remain relatively limited.