Uganda Airlines speaks out on pay dispute with fuel supplier

Uganda Airlines has said the delayed payment of its fuel supplier is due to inflated fuel invoices and high market prices.

On Monday, it emerged that the national carrier was facing legal action due to non-payment of about USD 8m to MIXJET, a fuel supplier.

But Uganda Airlines said the delay in payment is derived from their insistence on paying based on fuel uplifts and tech logs, not just the supplier’s invoices

“Since its inception, the airline has contracted MIXJET to supply fuel. From July 2019 to July 2024, the airline has made payments to MIXJET valued at USD 140m. The amount due to MIXJET is approximately USD 8m and not USD 10m as claimed,” the company said in a statement.

“The delay in payment is derived from Uganda Airlines’ insistence on paying based on fuel uplifts and tech logs, not just the supplier’s invoices. Over time, the Airline has received some inflated fuel invoices, high market prices, erroneously billed and over-invoiced, and consistent threats to withdraw services without due warning to the detriment of our operations,” it adds.

The national carrier protested the method used by the supplier to demand its payment.

 “While the Airline appreciates the credit facilities offered by the supplier, it finds it unacceptable that the supplier would drag it to mainstream media to protest standard financial management practices. The Airline will reconcile every invoice and, after satisfying itself, pay the supplier within a reasonable time,” it said.

“The Airline assures the public, especially its guests, that its operations will continue unabated,” it added.