12:44 30.07.2020

UIA sees $60 mln in losses due to halt of operations during lockdown, seeks to fire some 900 employees

2 min read
UIA sees $60 mln in losses due to halt of operations during lockdown, seeks to fire some 900 employees

Ukraine International Airlines (UIA, Kyiv) saw $60 million in losses due to the temporary suspension of its activities during lockdown and has to gradually lay off 900 employees, the UIA press service has told Interfax-Ukraine.

"The monthly downtime of an airline costs about $14.5 million in compulsory expenses, which entailed the loss of about $60 million during the period of the airline's idle period... A simple and significant decrease in the volume of operation after the restoration of air traffic in Ukraine leads to a forced gradual dismissal of about 900 UIA employees," the airline said.

At the same time, UIA said that it will be possible to get out of the loss only after the full-fledged operation of the airline is restored at the pre-crisis level, or on condition of receiving government support as European countries did for their carriers.

"To date, numerous requests from UIA to the authorities of Ukraine have remained unanswered," the airline said, adding that today it is difficult to consider flights restored, since it is necessary to plan routes in conditions of a large number of restrictions from other countries.

According to the press service of the airline, currently it operates only a third, or even less of the usual rhythm of flights.

The aviation committee of the Ukrainian Chamber of Commerce and Industry (UCCI) earlier calculated the losses of the aviation and tourist and hospitality sectors due to the coronavirus disease COVID-19 pandemic.

"The members of the Aviation Committee noted losses of at least UAH 10-15 billion for enterprises of the aviation industry only in the first quarter of this year," the committee said in a statement in March 2020.

The UCCI also said that the most vulnerable enterprises in terms of economic consequences of the COVID-19 pandemic are Ukrainian airports and airlines, meteorological centers and services, handling and refueling companies, aircraft maintenance companies, catering companies and specialized state-owned enterprises, such as the Ukrainian State Air Traffic Services Enterprise (UkSATSE).

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