What’s Holding Back Kazakhstan’s Air Transport Market?

What’s Holding Back Kazakhstan’s Air Transport Market?
November 4, 2025

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What’s Holding Back Kazakhstan’s Air Transport Market?

Kazakhstan’s aviation industry has posted steady growth in recent years. Over the past four years, passenger and cargo traffic have risen by more than 36% and 23% respectively, with an actively expanding route network.

The state’s aviation development strategy prioritizes infrastructure upgrades, improved safety standards, and expanded international cooperation. Yet, despite these advances, several systemic barriers continue to prevent Kazakhstan from realizing its potential as a Central Asian aviation hub.

These challenges were discussed at the New Silk Way International Transport and Logistics Business Forum and the annual TransLogistica Kazakhstan 2025 exhibition. Experts agree that Kazakhstan’s air transport market ranks among the fastest-growing globally, driven in part by geopolitical shifts that have boosted the volume of Chinese and European transit flights through its airspace.

Industry Trends and Infrastructure Expansion

A major airport modernization effort is underway, targeting key cities such as Astana, Almaty, Aktobe, Shymkent, and Karaganda. Renovations have already been completed in Aktau, Pavlodar, and Balkhash, while new terminals have opened in Almaty, Kyzylorda, and Shymkent. New airports are under construction in Kenderli, Zaisan, Katon-Karagai, and Arkalyk. Total investment in infrastructure has exceeded $2.9 billion.

According to the Civil Aviation Committee, in 2025, Kazakh airlines transported a record 15 million passengers and 171,000 tons of cargo. Transit flights accounted for 414 million aircraft-kilometers. Deputy Chairman Sarsen Zharylgasov has stated that the country now operates 56 domestic routes, up 9% year-on-year, and maintains air links with 30 countries.

International Routes and Regional Competition

In 2025, 33 new international routes were launched, connecting Kazakhstan to cities including Budapest, Munich, Cairo, Shanghai, Phuket, and Delhi. Currently, 140 international routes operate under the Open Skies policy, which has applied to 15 airports since 2019.

Looking ahead to 2026, new routes are planned to major global hubs, such as Singapore, Tokyo, Rome, Vienna, and New York. The long-anticipated direct U.S. flight hinges on a successful completion of the FAA’s CAT-1 audit, following Kazakhstan’s passage of the preliminary technical assessment in August 2024. The 2022 air transport agreement between the U.S. and Kazakhstan remains a key step toward this goal.

Air Astana plans to operate the route using a Boeing 787 Dreamliner, though delivery has been delayed to Q2 2026 due to production backlogs.

Meanwhile, Uzbekistan is ramping up its own ambitions. During President Shavkat Mirziyoyev’s 2025 visit to the US, Tashkent signed a deal with Boeing for 22 Dreamliners. Analysts suggest this could intensify regional competition and enhance Uzbekistan’s appeal as a transit hub.

Airport Bottlenecks and Tariff Issues

Despite progress in large cities, many regional airports remain hampered by chronic underinvestment and outdated tariff policies. According to Zharylgasov, tariffs at several airports have not been updated in over two decades.

“We are working to completely deregulate tariffs, but the Agency for the Protection and Development of Competition does not yet support us,” he noted.

Eliminating state control over airport tariffs could introduce market-based pricing, attract investors, and improve profitability, particularly for regional hubs.

Digitalization Drives Efficiency

Digital transformation is another key priority. Kazakhstan is implementing the E-Freight, API/PNR, and E-Doc-Airport systems and preparing to launch Face ID and digital passenger insurance programs.

The E-Freight system, now active at 18 airports and 20 airlines, has replaced 20 paper documents with digital alternatives, slashing cargo processing times from one day to one hour.

In 2025, Almaty Airport handled 850,000 passengers via its new Q-Gate automated passport control system, eliminating the need for manual inspection. Similar systems are set to be deployed in Astana, Aktobe, Aktau, Atyrau, and Shymkent by late 2026.

Cargo Hub Ambitions

Kazakhstan’s airspace lies along one of the busiest cargo corridors between Asia and Europe. More than 200 aircraft cross its territory daily, yet the existing infrastructure remains insufficient.

Even Almaty, the country’s largest airport, can only handle three to four aircraft at once. Astana and Karaganda manage just one to two.

“Every hour of aircraft downtime means added costs for both carriers and customers,” said Pavel Chistyakov, partner at IEC International.

Building robust hub infrastructure and expanding cargo capabilities is critical for maximizing Kazakhstan’s multimodal logistics potential. Chistyakov emphasized the need to identify which flights could make technical stops to generate new revenue streams.

Establishing a National Cargo Carrier

Kazakhstan plans to launch its first national cargo airline by 2026, based on KTZ Express, a subsidiary of Kazakhstan Temir Zholy (KTZ).

Gamir Zhumatayev, director of KTZ Express’s multimodal transport department, highlighted that the global air cargo market is growing at 4% annually. Kazakhstan aims to capture a share of that growth, leveraging its geographic position.

The Asian e-commerce market reached $2.6 trillion in 2024 and is projected to hit $3.8 trillion by 2028. A national cargo carrier could help integrate Kazakhstan into global logistics chains.

Fuel Supply Constraints

Jet fuel shortages remain a critical bottleneck. Domestic production from the country’s three refineries does not meet demand, leaving the industry reliant on imports.

From January 1, 2026, jet fuel imports will be exempt from VAT and import duties. Simultaneously, the government aims to boost production to 1.5 million tons annually by 2030. Still, for a country that holds 3.2% of global oil reserves, fuel dependency poses a strategic vulnerability.

To address long-term structural issues, Kazakhstan is working with the International Civil Aviation Organization (ICAO) to develop the Civil Aviation Master Plan 2050. The strategy outlines plans for infrastructure, regulation, and safety improvements, alongside efforts to fully leverage the country’s position at the crossroads of global air routes.

Kazakhstan’s aviation sector is growing steadily. But to become a true regional hub, the country must tackle long-standing issues, reforming tariffs, modernizing infrastructure, and enhancing regulatory effectiveness. Only through comprehensive reform, from deregulation to digitalization, can the industry take off to its next altitude.

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