Uganda Airlines limping but has potential – PAC report
Kampala, Uganda | THE INDEPENDENT | Uganda Airlines, often criticised for its heavy financial losses, still holds significant investment potential if strategic reforms are implemented, a new House report has revealed.
The Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises (PAC-COSASE) on the airline, has pointed out that despite incurring a net loss of Shs237.9 billion in the 2023-2024 financial year, revenues increased by more than 50 percent compared to the previous year.
Passenger revenue rose by 58 percent, cargo by 55 percent, and excess baggage by 63 percent.
“These figures demonstrate that there is a strong demand for Uganda Airlines’ services. What is lacking is the efficiency and strategic investment that would allow the airline to turn these numbers into profitability,” said Medard Lubega Sseggona, the COSASE chairperson.
Sseggona presented a scrutiny of the 2023/2024 Auditor General’s report on the airline, on Thursday, 11 September 2025 in a plenary sitting chaired by Speaker Anita Among.
Government has invested Shs1.87 trillion in the airline since its revival, and although accumulated losses stand at Shs1.02 trillion, PAC emphasised that with proper management, Uganda Airlines could become a profitable national asset.
The committee noted that Uganda Airlines has a unique advantage as the country’s national carrier, offering direct connections to key destinations in Africa and beyond.
The opening of new routes such as Johannesburg, Riyadh, and Accra, though delayed by budget shortfalls, was highlighted as a critical investment opportunity.
“The aviation sector is highly competitive, but also highly rewarding when managed strategically. If Uganda Airlines leverages partnerships with established global carriers, invests in marketing, and adopts modern fleet management through leasing, it can position itself as East Africa’s hub airline,” read the report.
The growing cargo business, COSASE argued, offers significant potential, particularly with Uganda’s expanding exports in fresh produce, fish, and manufactured goods. Cargo revenues grew by more than half in 2024, despite limited fleet and logistical challenges.
For Uganda Airlines to attract both public and private investment, PAC stressed the need for tighter financial discipline, highlighting gaps such as awarding General Sales Agent (GSA) contracts without bank guarantees and accumulation of Shs11.9 billion in contingent liabilities from court cases and baggage loss claims.
“These risks undermine investor confidence,” the committee observed, adding that “Uganda Airlines must enforce accountability in its contracts and staff conduct to create a stable environment for growth.”
Despite its struggles, the committee’s findings suggest that Uganda Airlines is not a lost cause. They called for positioning of Entebbe International Airport as a regional hub, investment in digital ticketing and customer service systems.
PAC recommended that the airline should urgently review its business model, prioritise leasing aircraft instead of outright purchases, and explore code-sharing agreements with established carriers.
The committee also urged government to consider targeted funding that directly supports profitable routes and cargo operations.
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