State transport companies ordered to cut service costs by 20%

As reported earlier, on 27 October, President Shavkat Mirziyoyev held a meeting on expected economic development outcomes and key macroeconomic indicators for 2026.

Minister of Transport Ilhom Mahkamov told the Uzbekistan 24 TV channel that at the beginning of the year, Uzbekistan Railways, Uzbekistan Airways, and Uzbekistan Airports were tasked with cutting their service costs by 20%. The instruction is to be fulfilled by the end of 2025, and a roadmap has been developed for state-owned companies to optimize their expenditures by at least 20%, he added.

Within a week, the Ministry of Transport will issue a separate resolution outlining the 2026 targets for expense optimization and cost reduction for Uzbekistan Railways, Uzbekistan Airways, and Uzbekistan Airports.

“It has been instructed to continue transforming major state transport companies, obtain credit ratings from the ‘big three’ agencies (Moody’s, Fitch Ratings, and Standard & Poor’s), and conduct an audit of direct procurement. An action plan will be developed to ensure the full implementation of these tasks,” Mahkamov noted.

According to the National Committee on Statistics, domestic passenger airfares have risen by 57.3% over the past year. In terms of price growth, airline tickets rank third after driving courses (+73.3%) and carrots (+57.5%).

In March, Chairman of the Board of Uzbekistan Airways Shukhrat Khudaykulov said that the president had instructed the airline not to increase ticket prices and to closely monitor the pricing process.

In May, the Competition Committee warned passenger airlines in Uzbekistan about liability for creating an artificial shortage of tickets. A few days earlier, Uzbekistan Airways and its subsidiary Silk Avia had reduced fares on domestic routes.

The Antimonopoly Committee explained that high airfares in Uzbekistan are largely due to a shortage of aviation fuel, which accounts for more than half of ticket prices. However, the agency noted that it found no signs of restricted competition in the passenger air transport market.