(Posted 29th August 2026)
Courtesy of Naome Namusoke KMAUpdates.com and Ronald Kabuubi Senior via LinkedIn
Uganda Airlines has come under renewed scrutiny over its financial performance after the Auditor General’s Report revealed that government has injected approximately 1.984 trillion shillings into the national carrier since its revival.
The revelations have triggered concern among legislators, who questioned whether the airline is providing value for the substantial public funds committed to its operations.
Uganda Airlines management appeared before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) to respond to concerns surrounding the airline’s persistent losses, growing liabilities, revenue performance and operational challenges.
The committee sought explanations from management on why the national carrier continues to record recurring losses despite significant financial support from government.
According to the Auditor General’s Report, government has provided about 1.984 trillion shillings to Uganda Airlines since its revival five years ago, although only approximately 200 billion shillings has reportedly been spent so far.
The figures have raised questions about the airline’s financial management, sustainability and ability to eventually operate as a commercially viable national carrier.
Lawmakers demanded accountability from management, particularly over the continued accumulation of liabilities and the airline’s recurring financial losses.
The legislators questioned whether the substantial government investment was translating into improved operations, increased passenger numbers and stronger revenues.
Management, however, attributed the persistent losses to several operational and financial challenges.
Among the factors cited were inadequate revenue collection, high fuel costs, contractual obligations and the costs associated with opening and maintaining new routes.
Management explained that newly introduced routes require substantial resources during their initial stages before they can attract enough passengers and generate sufficient revenue to become profitable.
The airline’s management further argued that aviation is a capital-intensive business and that establishing a new airline and expanding its network requires significant investment before returns can be realised.
However, the explanation did not fully satisfy some members of the committee, who maintained that management must demonstrate clear and measurable strategies for reducing losses and improving the airline’s financial position.
Another issue raised during the session was the reported issuance of duplicate tickets, which has allegedly caused inconvenience and confusion for passengers travelling through the airport.
Some lawmakers told the committee that they had personally experienced problems associated with duplicate tickets, raising concerns about the airline’s ticketing and reservation systems.
They called on management to strengthen its systems and put in place measures to ensure that passengers are not subjected to unnecessary disruptions at the airport.
The committee also challenged Uganda Airlines to intensify its marketing and promotional activities to attract more passengers and increase revenue.
Lawmakers argued that a stronger marketing strategy would be essential in helping the airline compete with other carriers operating on Uganda’s routes, while also improving awareness of its destinations and services.
Responding to concerns over the airline’s continued losses, Chief Executive Officer Arto Girma Wake explained that Uganda Airlines is still in a growth and expansion phase and that profitability cannot be achieved immediately.
He argued that airlines require time to establish routes, build customer confidence, increase passenger volumes and create sustainable revenue streams.
Management maintained that the expansion of the airline’s network is intended to strengthen Uganda’s position in regional and international aviation while providing Ugandans with a national carrier capable of connecting the country to key destinations.
Despite the explanation, lawmakers expressed dissatisfaction with what they considered insufficient progress in turning around the airline’s financial performance.
They stressed that government investment must ultimately deliver tangible results and that management has a responsibility to ensure the national carrier operates efficiently and sustainably.
The legislators also reminded the Chief Executive Officer that his appointment carries a significant responsibility to ensure that Uganda Airlines performs better and protects the substantial public resources invested in the company.
The concerns come at a time when the national carrier is expected to play a strategic role in expanding Uganda’s connectivity, supporting tourism, facilitating trade and strengthening the country’s links with regional and international markets.
Since its revival, Uganda Airlines has expanded its operations and introduced several regional and international routes as part of government’s efforts to rebuild a national aviation brand.
However, the airline’s financial performance remains a major point of debate, particularly as taxpayers continue to provide financial support.
The COSASE committee is now expected to seek further clarification from Uganda Airlines management on the airline’s expenditure, liabilities, revenue collection, route performance and plans to achieve profitability.
The committee session ended without all the concerns being fully resolved, prompting lawmakers to defer the matter to tomorrow for further discussions and clarification.
The continued parliamentary scrutiny places renewed pressure on Uganda Airlines management to demonstrate how the national carrier intends to transform its operations, reduce losses and ensure that the billions of shillings invested by government generate meaningful returns for the country.
For taxpayers, the central question remains whether Uganda Airlines can transition from a heavily supported national project into a financially sustainable carrier capable of meeting its operational obligations while delivering value to the Ugandan public.
