The article examines the economic activity of air transport in Ukraine and explores ways to improve the competitiveness of domestic airlines. It analyzes airline performance, passenger and cargo transportation trends, and suggests transitioning air transport to Industry 4.0. The study identifies challenges affecting air transportation in Ukraine and offers solutions to overcome crisis situations. Key trends in air transport development and internal and external factors influencing the industry are highlighted. The analysis also provides practical recommendations for enhancing the competitiveness of the Ukrainian aviation market.