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Uganda Airlines Faces Scrutiny Over Losses and CRJ900 Fleet

Uganda Airlines Faces Scrutiny Over Losses and CRJ900 Fleet
Uganda Airlines is confronting intense scrutiny following the Auditor General’s report, which revealed losses exceeding UGX237.85 billion (approximately USD66.8 million) for the 2023/24 financial year. The national carrier’s management appeared before Parliament’s Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) on August 14 to address concerns regarding persistent financial difficulties and the continued reliance on its ageing Bombardier CRJ900LR fleet.
Financial Challenges and Fleet Concerns
Chief Executive Officer Jenifer Bamuturaki attributed the airline’s losses to several factors, including high fuel prices, currency depreciation, increased crew allowances, and the costly maintenance and spare parts required for the four CRJ900LR regional jets. Lawmakers questioned the initial decision to acquire these aircraft, summoning former executives—among them ex-CEO Ephraim Bagenda and members of the procurement team—to justify the rationale behind the fleet choice. The committee emphasized its constitutional mandate to hold previous officials accountable for decisions that have adversely affected the airline’s performance.
The airline’s ongoing financial struggles have raised alarm among investors and market analysts, who warn that continued losses could undermine confidence and intensify pressure on management to enhance operational efficiency. Competitors may exploit Uganda Airlines’ vulnerabilities by offering more competitive services and pricing, potentially eroding the national carrier’s market share. Additionally, the heavy dependence on the CRJ900 fleet has attracted regulatory and operational scrutiny, with lawmakers advocating for strategic adjustments to secure the airline’s future viability.
Parliamentary Criticism and Management Response
Parliamentarians further criticized Uganda Airlines for failing to pay government dividends for two consecutive years, its heavy reliance on passenger and cargo revenue, and a rising number of lawsuits related to delayed cargo and lost baggage. In response, management highlighted that the airline’s debt remains below the critical 50% equity threshold and noted that the 2024 loss represented a 25.6% improvement compared to the previous year’s UGX324.94 billion (USD91.2 million) deficit. Bamuturaki stated that the airline is actively renegotiating contracts to reduce costs and eliminate unfavorable terms.
COSASE chairman Medard Lubega Sseggona described the losses as “a matter of grave concern” and instructed Bamuturaki to address allegations of ticket tampering and fare manipulation. Transport Minister Edward Katumba Wamala informed the committee that collusion between staff and affiliated travel agencies had resulted in estimated losses of UGX179 billion (USD50.2 million) from price manipulation and UGX140 billion (USD39.3 million) from fare tampering. The committee mandated that management submit a written response by August 18, including findings from a South African consultancy investigating the airline’s revenue challenges.
Future Plans and Fleet Expansion
Looking ahead, Bamuturaki announced plans to launch domestic flights in the 2026/27 financial year, aiming to enhance internal connectivity and alleviate pressure on Uganda’s road infrastructure. Currently serving 23 international destinations—including a recently inaugurated route to London Gatwick—Uganda Airlines intends to utilize the country’s 47 airstrips to support these domestic services. The airline operates four CRJ900LRs and two A330-800Ns and is finalizing an order with Airbus for two A320-200Ns and two A321-200Ns. In the interim, it plans to dry-lease one A320-200 and one A321-200 by October 2025 and has extended a 12-month ACMI contract for an A320-200 from Danish Air Transport (DAT). Additionally, the airline has received government approval to wet-lease a Boeing 737-800(F) while ongoing discussions with Boeing continue regarding a potential purchase.
As Uganda Airlines grapples with mounting financial and operational pressures, its management faces increasing demands to implement reforms and restore confidence in the national carrier’s future.

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