Economy

Ukrzaliznytsia predicts UAH 22 billion in losses and hints at tariff increases

According to Ukrzaliznytsia’s financial plan for 2025, the company expects losses of UAH 22 billion from passenger transportation. International flights remain the only profitable area. This information was announced by Ukrzaliznytsia CEO Oleksandr Pertsovsky, Komersant ukrainskyi reports citing Liga.net.

“We calculate the profitability of each individual flight. If I, as a business, leave only profitable flights today, it will be 5-7% of all our routes, and the rest of the network should be closed. This is for long-haul and suburban flights – we have to close all of them,”

– he said.

According to Pertsovsky, unprofitable passenger transportation is a common practice around the world, and Ukraine is no exception. Previously, the company compensated for these losses through profitable freight transportation, which in 2023 brought in UAH 20 billion in operating profit.

“In 2024-2025, we have a slightly different trend… The profitability of freight transportation has begun to decline, and in 2025 it is planned to fall to the level of UAH 5-6 billion, which does not allow us to cover the loss of passenger transportation. This is provided that we do not push through the indexation of freight transportation,”

– Pertsovsky said.

The official decided not to mention the “indexation” of passenger transportation for now.

The head of Ukrzaliznytsia explained that the decline in the profitability of freight transportation was caused by several factors:

• a decrease in the transportation of coal, grain and metallurgical products (in particular, due to the suspension of the Ingulets Mining and Processing Plant and a significant reduction in ArcelorMittal’s production)
• change in the structure of transportation in favor of cheaper cargo;
• higher electricity prices for businesses;
• increased labor costs.

As reported by , Ukrzaliznytsia planned to increase freight transportation tariffs by 37% in 2025. This decision caused concern among businesses and economists, as it could have serious consequences for the Ukrainian economy.

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Impact on farmers and the rural population

Farmers have expressed concern about the tariff increase, as it could increase the cost of transportation of grain and other agricultural products. In particular, a 67% increase in the tariff for the transportation of empty wagons could increase farmers’ costs by UAH 50-60 per ton, which would result in additional costs of about UAH 2 billion per season.

Such changes may affect the number of farms in Ukraine, which in turn will affect the size of the rural population. Small farmers may abandon their land, leading to the shrinkage of rural communities.

Economic consequences for businesses

Increased tariffs could lead to higher costs for businesses, especially in times of war and economic instability. Transportation costs may become an additional burden for businesses already facing numerous challenges.