UIA stability and plans for 2022
The top management of Ukraine International Airlines has prepared an optimistic budget for the Company for 2022. A retrospective analysis of the activities during the pandemic reflected an obvious change in trend towards stabilization and growth of UIA financial indicators after the optimization of the company's work carried out at the end of 2019 and in 2020. “We have been at the stage of transformation and recovery of the company since the fourth quarter of 2019. At that time, all unprofitable flights were canceled, which generated a total loss of $ 216 million for UIA over 5 years (2014-2019)," says Yevhenii Dykhne, CEO of UIA.
During the quarantine years 2020-2021, UIA management adapted the company's business model from network to hybrid:
1) The share of charter ("guaranteed") traffic was increased from 10% to 60%;
2) The fleet was adapted to the real needs during the crisis period (up to 28 aircraft);
3) Regular long-haul flights were canceled;
4) Adapted slots (convenience of departure / arrival time) for P2P passengers;
5) The hub in "two waves" at the Boryspil airport has been preserved to ensure transit.
Optimization of UIA's operating activities made it possible to demonstrate a positive financial result at the beginning of 2021.
prevention of unreasonable expenses, total reduction of the company's fixed costs, complete rejection of unprofitable flights, restructuring of leasing payments, optimization of staff.
Thanks to anti-crisis management solutions at different levels of UIA management, according to the official confirmation of Lufthansa Consulting consultants, the airline provided savings of about $ 90 million per year, which extracted UIA among a number of international network carriers in terms of CASK (Cost Available Seat Kilometer).
High-quality management policy, adaptation of the business model, transition to partnership financial relations with state service enterprises and the Ministry of Infrastructure of Ukraine, as a result, made it possible to form an optimistic budget for 2022. UIA plans to carry more than 4.5 million passengers and keep the dynamics of profitability.
“Currently, the budget has been submitted to the UIA Supervisory Board for consideration. After its approval, we will be able to talk in more detail about our plans. At the moment, adjustments are still possible,”said Yevhenii Dykhne, CEO of UIA.
“At the same time, even this year we are planning pleasant surprises for our passengers - intranet on airplanes and the return of fresh food step by step in business class. First of all, this concerns New Year's charter long-haul programs,” added the CEO of UIA.
Reference. Evhenii Dykhne was appointed President of UIA in September 2019. In 2018, the company received a loss of UAH 2.7 billion, finished 2019 with a profit of UAH 1.6 billion. In 2020, the loss amounted to UAH 4.5 billion, which, first of all, was associated with the industry-wide crisis due to the COVID-19 pandemic. According to the financial statements of UIA, for 9 months of 2021 its profit amounted to UAH 1.09 billion.