Partial IPO of Uzbekistan Airways planned by year-end

Uzbekistan plans to partially privatize its national airline, Uzbekistan Airways, through an international Initial Public Offering (IPO) by the end of 2026. President Shavkat Mirziyoyev has reviewed plans to accelerate the airline's transformation and IPO preparations, signaling a significant step in the country's economic reforms.

The national airline is among 13 major companies within the National Investment Fund's portfolio slated for IPOs. This initiative follows the fund's successful debut on international capital markets, which saw demand exceed supply fourfold. Franklin Templeton has developed a comprehensive transformation program for Uzbekistan Airways, comprising 115 measures aimed at boosting its annual operating profit by approximately $120 million and increasing its estimated value from $1.6 billion to $2.3 billion.

Key improvements will focus on route optimization, expanding direct sales, enhancing customer service, increasing flight frequency, reducing delays, and improving catering and technical services. These measures are expected to generate additional revenue and improve the airline's overall performance. The airline has faced challenges in keeping pace with a 27.5% surge in tourism arrivals this year, particularly from China, Malaysia, Japan, and the United States.

President Mirziyoyev emphasized the importance of strengthening corporate governance, financial discipline, and adopting international reporting standards before Uzbekistan Airways enters global capital markets. The plan includes an objective valuation of the company, measures to boost investment attractiveness, and the introduction of a compensation mechanism for state-related services. The goal is to transform Tashkent into a major aviation hub in Central Asia, requiring coordinated development between the airline, airports, and new infrastructure projects.