Overview:
Uganda Airlines reports early signs of financial stabilization as net losses narrow to 230.8 billion shillings. The report shows how a 19 percent revenue surge and international route expansion are driving the national carrier’s recovery despite rising fuel costs and fleet challenges.
KAMPALA, Uganda — Uganda Airlines reported a slight narrowing of its net loss to 230.81 billion shillings for the 2024-25 financial year, supported by a 19.2% surge in revenue as the carrier expanded its international route network.
The loss represents a modest 0.33% improvement from the 231.58 billion shillings recorded the previous year, according to an Auditor General report released Thursday. While the gain is slim, the figures suggest a stabilization for the national carrier, which saw losses peak at 325 billion shillings in 2023.
The airline’s performance was bolstered by increased traffic on long-haul services, including its route to London. However, the report warned that rising operating costs and internal control weaknesses continue to offset these revenue gains.
Total trade payables climbed to 235.7 billion shillings as of June 2025, up from 171.68 billion shillings a year earlier. The increase highlights persistent liquidity stress and rising expenses related to fuel, aircraft maintenance and handling services.
The audit also identified several operational risks that hampered the airline’s turnaround:
- A CRJ900 aircraft has remained grounded since September 2025 due to the lack of a critical spare part, leading to flight disruptions and revenue loss.
- Management is currently in legal proceedings to recover a $930,000 security deposit following delays in closing an A320 wet lease agreement.
- Fuel procurement remains a high-risk area, with 61.8 billion shillings in payments made without a valid supply contract.
- An investigation is ongoing into the Juba country office, where roughly 368.2 million shillings in cash collections were not banked as required.
Despite significant government backing—totaling 1.98 trillion shillings in equity investment since the airline was revived five years ago—execution gaps remain. The Auditor General noted that out of 29 planned outputs for the year, only one was fully implemented.
Furthermore, a verification process is underway for 282 billion shillings in domestic arrears, which could add substantial liabilities to the airline’s balance sheet once confirmed.