Key Takeaways
• Uganda Airlines receives UGX 1.2 trillion in 2025/26 for fleet expansion and new routes.
• Plans include acquiring 8 new aircraft and leasing 3 planes short-term to boost capacity.
• New domestic and international routes aim to lower fares and grow market share.
Uganda Airlines Secures Major 2025/26 Budget for Aircraft and Route Expansion
Uganda Airlines is set for a major transformation in the 2025/26 financial year, following a significant budget allocation from the government. On June 12, 2025, Uganda’s Minister of Finance, Matia Kasaija, announced the national budget, dedicating a substantial portion to the aviation sector. This move aims to boost the country’s air connectivity, support economic growth, and position Uganda as a regional aviation hub.
Who, What, When, Where, Why, and How
Uganda Airlines, the country’s national carrier, will receive a large share of the Ministry of Works and Transport’s UGX 1.2 trillion allocation for the 2025/26 financial year. The funds are earmarked for buying new aircraft, opening new routes, and upgrading Entebbe International Airport. The government’s goal is to improve transport infrastructure, make air travel more affordable, and support tourism and trade. The expansion is part of a broader Shs 6.92 trillion investment in integrated transport services, covering air, road, rail, and water.
Budget Details and Government Commitment
The total national budget for 2025/26 stands at Shs 72.3 trillion. The theme for this year is “Full Monetization of the Ugandan Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access.” Uganda Airlines is a key part of this vision, with the government promising more capital to help the airline buy new aircraft, launch new routes, and improve handling capacity.
Minister Matia Kasaija stressed the importance of supporting Uganda Airlines, saying the airline is vital for connecting Uganda to the world and boosting the economy. The government’s commitment is clear: Uganda Airlines will get the resources it needs to grow and compete with other regional carriers.
Fleet Expansion: New Aircraft and Leasing Plans
Uganda Airlines is planning a big expansion of its fleet. The airline will move toward a mixed fleet model, which means it will operate different types of aircraft to serve various routes and needs. Here’s what the plan looks like:
- Acquisition of 8 new jetliners: This includes 4 mid-range aircraft, 2 wide-body jets, and 2 cargo freighters. These new planes will help the airline serve more destinations and carry more passengers and cargo.
- Short-term leasing of 3 additional aircraft: To meet immediate needs, Uganda Airlines will lease 3 planes, including a dedicated cargo aircraft. This will help bridge the gap while waiting for the new planes to arrive.
- Current fleet: As of July 2025, Uganda Airlines operates 2 Airbus A330-800s for long international routes and 4 Bombardier CRJ-900LRs for regional flights.
The airline’s CEO, Jenifer Bamuturaki, explained that the mixed fleet strategy allows Uganda Airlines to be flexible and efficient. By leasing aircraft in the short term, the airline can quickly add capacity and serve new routes without waiting for new planes to be delivered.
Future Aircraft: Fuel Efficiency and Long-Haul Capability
Looking ahead, Uganda Airlines plans to add Airbus A320neos and Boeing 787 Dreamliners to its fleet by 2030. The Boeing 787 is known for its fuel efficiency and ability to fly long distances, making it ideal for intercontinental routes. Aviation experts have praised this move, saying it will help the airline save money on fuel and expand to new markets.
Building Local Maintenance Capacity
One of the biggest challenges for airlines in Africa is the high cost of aircraft maintenance. Uganda Airlines currently spends about 20% of its budget on maintenance, much of which is done outside the country. To address this, the airline plans to build its own aircraft hangar in Uganda. This project, part of a 10-year strategic plan, will cost about $50 million (Shs 183 billion). Having a local hangar will reduce costs, improve reliability, and create jobs for Ugandans.
Expanding the Route Network: New Destinations and Domestic Flights
Uganda Airlines is not just adding new aircraft; it’s also expanding its route network. The airline currently serves 17 direct destinations, including major African cities like Nairobi, Dar es Salaam, Johannesburg, Abuja, Lusaka, Harare, and Kinshasa. It also flies to Dubai and London Gatwick, connecting Uganda to Europe and the Middle East.
Planned New Routes
The airline has ambitious plans to launch new routes in the coming years, including:
- Accra (Ghana)
- Riyadh and Jeddah (Saudi Arabia)
- Cape Town (South Africa)
- Guangzhou (China)
- Mumbai (India)
- Cairo (Egypt)
- Istanbul (Turkey)
- Abu Dhabi (United Arab Emirates)
- Domestic routes within Uganda
These new destinations will make it easier for Ugandans to travel abroad and for tourists and business travelers to visit Uganda. The airline is also preparing to launch domestic flights, which will help connect international arrivals to local destinations, especially national parks and tourist sites.
Impact on Airfares and Market Share
Uganda Airlines’ growth has already had a big impact on the local aviation market. Since the airline started operations, airfares have dropped significantly. For example, a return ticket to Nairobi now costs about USD 300, compared to USD 800 in 2019. This makes air travel more affordable for Ugandans and encourages more people to fly.
The airline’s market share has also grown rapidly. Uganda Airlines now handles 24% of all air travel out of Entebbe International Airport, up from just 4% in 2019. This makes it the largest operator at the airport. The airline currently serves about 5,000 connecting passengers each month.
Financial Performance: Revenue Growth and Profitability Goals
Uganda Airlines’ financial performance has improved dramatically in recent years. Revenue jumped to Shs 319 billion in the 2023/24 financial year, up from Shs 28 billion in 2019/20. This represents a 54% year-on-year increase in 2024/25. CEO Jenifer Bamuturaki is confident that the airline will reach profitability by 2027, thanks to careful cost management and operational efficiency.
Government and Stakeholder Perspectives
The government sees Uganda Airlines as a key driver of economic growth. Minister of Works and Transport, Gen. Edward Katumba Wamala, highlighted the importance of new international routes, especially the Entebbe–London connection, for boosting trade and tourism. The airline’s expansion is expected to attract more tourists, increase exports, and create jobs.
Tourism officials are optimistic about the future. Improved air connectivity has already led to a 15% increase in tourism-related investments. For example, trade between the United Kingdom 🇬🇧 and Uganda 🇺🇬 reached GBP 860 million in 2023, a sign that better air links are helping businesses grow.
The business community also welcomes the airline’s growth, especially the expanded cargo capacity and new trade routes. These changes will make it easier for Ugandan businesses to export goods and import supplies.
Infrastructure Upgrades: Entebbe International Airport
Uganda Airlines’ expansion goes hand in hand with upgrades at Entebbe International Airport. The airport is nearing completion of a major expansion, including a new cargo facility and passenger terminal. These improvements will make the airport more efficient and comfortable for travelers, and support the airline’s growing operations.
Step-by-Step: How Uganda Airlines Is Expanding in 2025/26
- Government Budget Approval: Parliament approves the 2025/26 budget, allocating funds to the Ministry of Works and Transport and Uganda Airlines.
- Capital Injection: The government provides funds for buying new aircraft, developing new routes, and upgrading infrastructure.
- Aircraft Procurement: Uganda Airlines starts the process of buying 8 new jetliners and leasing 3 more planes for immediate needs.
- Route Launches: As new aircraft arrive, the airline rolls out new international and domestic routes.
- Maintenance Hangar Development: The airline begins planning and building a local maintenance hangar to reduce costs and improve reliability.
- Operational Expansion: Uganda Airlines increases flight frequency, adds new destinations, and integrates domestic services, supported by ongoing improvements at Entebbe International Airport.
Policy Implications: What This Means for Ugandans and the Region
The expansion of Uganda Airlines has several important effects:
- Lower Airfares: Increased competition has forced other airlines to lower their prices, making air travel more affordable for everyone.
- Better Connectivity: New routes and more flights mean Ugandans can travel more easily within Africa and to other continents.
- Boost to Tourism: Easier access to Uganda is expected to attract more tourists, supporting hotels, tour operators, and local businesses.
- Support for Trade: Expanded cargo services and new trade routes will help Ugandan businesses export goods and import supplies more efficiently.
- Job Creation: The growth of the airline and airport will create jobs in aviation, tourism, and related industries.
Challenges and Future Outlook
While the outlook is positive, Uganda Airlines faces some challenges. Building a local maintenance hangar will require significant investment and skilled workers. The airline must also manage costs carefully to achieve profitability. However, the government’s strong support and the airline’s clear strategy provide a solid foundation for future growth.
The delivery of new aircraft, including the Airbus A320neos and Boeing 787 Dreamliners, will be phased through 2030. In the meantime, leasing additional planes will help the airline meet demand and maintain service quality. The launch of domestic flights will complete Uganda’s air travel network, making it easier for people to travel within the country and for tourists to reach popular destinations.
Expert Opinions and Stakeholder Views
Aviation experts have praised Uganda Airlines’ move toward a mixed fleet and the acquisition of fuel-efficient aircraft. These steps are expected to lower operational costs and support long-haul expansion. The Uganda Tourism Board expects a surge in international arrivals and increased tourism revenue, thanks to better connectivity and competitive fares.
Business leaders are also optimistic. Expanded cargo capacity and new trade routes will make it easier for Ugandan companies to do business with partners around the world. As reported by VisaVerge.com, these changes are likely to strengthen Uganda’s position as a key player in the regional aviation market.
Practical Guidance for Travelers and Businesses
For travelers, the expansion of Uganda Airlines means more choices, lower fares, and better service. If you’re planning a trip to or from Uganda, check the airline’s official website for the latest routes and schedules: Uganda Airlines Official Website.
For businesses, the new cargo services and trade routes offer opportunities to reach new markets and improve supply chains. Stay informed about developments by visiting the Ministry of Works and Transport for updates on infrastructure projects and transport policies.
Conclusion: A New Era for Uganda’s Aviation Sector
Uganda Airlines is entering a new era, backed by strong government funding, a clear expansion plan, and a focus on both international and domestic connectivity. The airline’s growth is reshaping Uganda’s aviation landscape, driving down fares, boosting tourism and trade, and positioning Uganda as a regional aviation hub. The coming months will be critical as new aircraft are delivered, new routes are launched, and infrastructure projects—including a maintenance hangar—move forward.
For Ugandans, these changes mean better access to air travel, more job opportunities, and a stronger economy. For travelers and businesses, Uganda Airlines’ expansion offers new possibilities and improved service. As the airline continues to grow, it will play a key role in connecting Uganda to the world and supporting the country’s development goals.
Learn Today
UGX → Ugandan shilling, the official currency used in Uganda for budgeting and expenses.
Mixed Fleet → An airline strategy using different aircraft types for various route lengths and capacities.
Airbus A330-800 → A long-range wide-body aircraft used for international flights by Uganda Airlines.
Leasing → Temporarily renting aircraft to meet immediate capacity needs before permanent acquisition.
Fuel Efficiency → A measure of how much fuel an aircraft uses, reducing operating costs and emissions.
This Article in a Nutshell
Uganda Airlines secured a significant 2025/26 budget to expand its fleet and routes, driving affordability, boosting tourism, and enhancing Uganda’s status as a regional aviation hub with new aircraft and infrastructure investments.
— By VisaVerge.com
