Uganda Airlines, long criticised as a drain on the public purse, may be on the cusp of a turnaround if decisive reforms are adopted, a new parliamentary report has revealed.
The findings of the Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises (PAC-COSASE) suggest that, despite posting a net loss of Shs237.9 billion in the 2023/24 financial year, the national carrier is showing remarkable growth in revenue streams that point to untapped potential.
According to the report, revenues rose sharply over the last year, with passenger earnings increasing by 58 percent, cargo revenues by 55 percent, and income from excess baggage by 63 percent. Presenting the committee’s findings before Parliament on Thursday, 11 September 2025, chairperson Medard Lubega Sseggona argued that these numbers are a clear indication of growing demand for Uganda Airlines services. What remains lacking, he stressed, is the efficiency and strategic management needed to convert this demand into long-term profitability.
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The government has so far invested Shs1.87 trillion in the airline since its revival. While cumulative losses have climbed to Shs1.02 trillion, PAC maintains that Uganda Airlines holds strategic importance that cannot be ignored. The committee noted that as a national carrier, the airline enjoys a unique positioning, offering direct connections to major destinations across Africa and beyond. However, delays in launching routes to Johannesburg, Riyadh, and Accra—largely because of budget shortfalls—have slowed down the carrier’s growth, with the report emphasising that timely investment in such routes could transform Uganda Airlines into a competitive regional player.
The report also underscored the airline’s growing cargo business as one of its most promising avenues for expansion. Uganda’s exports of fresh produce, fish, and manufactured goods continue to expand, yet limited fleet capacity and logistical challenges constrain this growth.
Despite these obstacles, cargo revenues still grew by more than half in 2024, demonstrating the vast opportunities awaiting proper investment.
Still, PAC stopped short of dismissing Uganda Airlines as a hopeless venture. Instead, it called for a new approach that places efficiency at the centre of operations. The report recommended that management rethink the existing business model by considering aircraft leasing instead of outright purchases, pursuing code-sharing agreements with established global airlines, and modernising systems for digital ticketing and customer service.
It also highlighted the strategic importance of positioning Entebbe International Airport as a regional hub that can draw traffic from across East and Central Africa.
While critics remain sceptical, arguing that the airline’s mounting losses reflect poor planning and waste, the committee’s findings suggest that beneath the turbulence lies a promising opportunity.
Uganda Airlines, though struggling, could yet emerge as a profitable national asset—provided the government and management are willing to confront inefficiencies and make the reforms that align the carrier with the realities of a highly competitive aviation market.
