• Uganda plans $113.3 million injection to expand Uganda Airlines fleet
• Funding to purchase 10 aircraft amid rising demand, disruptions
• Airline faces debt, losses, and operational challenges despite leadership change

Uganda is considering a major capital injection into Uganda Airlines, local media report. The government plans to allocate 422.26 billion Ugandan shillings (more than $113.3 million) from a supplementary budget approved earlier this year to fund the purchase of 10 aircraft and expand the carrier’s capacity.

The move comes as network expansion has boosted passenger demand but exposed the limits of a fleet widely seen as insufficient. The airline has faced repeated disruptions, including delays and cancellations, highlighting deeper operational and financial weaknesses.

Uganda Airlines has accumulated significant debt, while governance issues continue to weigh on performance. In August 2025, management projected a 14% increase in losses for the current fiscal year, after losses had already reached 237 billion shillings. Authorities subsequently replaced the airline’s leadership.

In February, Girma Wake, former chief executive of Ethiopian Airlines, was appointed to lead the turnaround following the resignation of Jenifer Bamuturaki. Despite the planned funding and leadership change, key challenges remain, including improving reliability and returning to financial stability. The airline also faces pressure on medium- and long-haul routes dominated by established carriers, which could continue to weigh on profitability in the near term.

Henoc Dossa