Uganda Airlines (UR, Entebbe) is set to receive additional government funding in the 2025/2026 financial year as part of a broader UGX6.92 trillion shilling (USD1.92 billion) investment in the country’s transportation infrastructure, according to Finance Minister Matia Kasaija.
In his national budget speech, Kasaija did not disclose what portion was ringfenced for the state carrier, but said the budget covered "integrated transport and infrastructure services including roads, bridges, railways, water transport and air transport".
Kasaija confirmed that Uganda Airlines would receive further capitalisation to acquire additional aircraft and expand its network of passenger and cargo routes. "In the next financial year 2025/26, priority interventions will include: additional capitalisation of Uganda Airlines to acquire more aircraft; to open up more routes for passenger and cargo transportation, and handling capacity," he stated.
As reported by ch-aviation, Uganda Airlines currently operates four CRJ900LR regional jets and two A330-800Ns. It is finalising a narrobody order with Airbus for four additional aircraft: two A320-200Ns and two A321-200Ns. In the meantime, it plans to dry-lease one A320-200 and one A321-200 by October 2025. Additionally, the airline has extended a 12-month ACMI contract for one A320-200 from DAT - Danish Air Transport (Kolding). It has also received permission from the government for the wetlease a B737-800(F), while talks with Boeing continue about the potential purchase of B787s for flights to Guangzhou in 2026.
"The airline is now flying to 17 direct destinations, which has contributed to reduced travel time at a more affordable cost," he said. He noted that the presence of the national carrier has brought down regional airfares.
Kasaija said Uganda Airlines had grown its market share at Entebbe from 4% in 2019 to 24%, becoming the largest operator out of the country’s main gateway. He said its revenue increased from UGX28 billion (USD7.8 million) in the 2019/20 fiscal year to UGX319 billion (USD88.9 million) in 2023/24.
"With increased capitalisation and acquisition of additional aircraft, the airline will increase efficiency, and travellers to and from Uganda will enjoy direct and cheaper travel to more international destinations," he said.
The government will also prioritise the operationalisation of Kabalega International Airport, currently under construction in the oil-rich Hoima region, and continue with upgrades to strategic airports and aerodromes across the country. The near-complete expansion of Entebbe International Airport, including a new cargo centre and passenger terminal, was expected to further improve logistics and passenger experience, he added.
