Grounded Aircraft Deepen Air Tanzania’s Financial Losses

Air Tanzania has reported a 62% increase in net loss for the 2023–24 fiscal year, primarily driven by the prolonged grounding of its Airbus A220-300 fleet and a DHC-8-Q300 aircraft. The national carrier’s total accumulated losses reached TZS534 billion (USD199 million), according to the annual audit presented by the Controller and Auditor General in Tanzania’s National Assembly on April 16, 2025.

The report highlights that four of Air Tanzania’s A220-300s were grounded for up to 721 days due to engine faults and corrosion issues, with limited spare parts and poor support from the manufacturer. Despite not flying, the aircraft generated fixed costs of TZS9.16 billion (USD3.4 million) for the airline during the year. The long-grounded Dash-8 Q300 has also contributed to the losses, with nearly TZS20.63 billion (USD7.7 million) spent on ineffective repairs over seven years.

Air Tanzania continues to face high lease and maintenance costs, particularly from aircraft owned by the Tanzania Government Flight agency (TGF), which leases aircraft to the airline. Unpaid lease and maintenance reserve charges now stand at TZS369.13 billion (USD137.4 million), making up 63% of the airline’s liabilities.

Despite receiving financial support from the government, including TZS127 billion (USD47.2 million) in staff and capital grants, the airline’s operating challenges persist. Only five of its 16 aircraft remain grounded as of April 2025, while the rest operate domestic, regional, and limited long-haul services. The audit recommends a reassessment of aircraft suitability and better management of lease agreements with the TGF.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com