Uganda Airlines Gets 2025/26 Budget for Fleet, Route Growth

Uganda Airlines is set to receive additional government funding in the 2025/26 fiscal year as part of Uganda’s UGX6.92 trillion (USD1.92 billion) investment in national transport infrastructure. Finance Minister Matia Kasaija confirmed in his budget speech that the state-owned airline will be recapitalized to acquire more aircraft and expand its network of passenger and cargo routes.

While the specific allocation for Uganda Airlines was not disclosed, the funding supports a broader effort to improve integrated transport services, including air, road, and rail systems. Kasaija noted that boosting the airline’s capacity will enhance efficiency and lower travel costs for Ugandan travelers.

Uganda Airlines currently operates four CRJ900LRs and two Airbus A330-800neos. It plans to lease one A320-200 and one A321-200 by October 2025 and finalize an Airbus order for two A320neos and two A321neos. The airline also extended an ACMI agreement with DAT for an A320 and received approval to wetlease a Boeing 737-800 freighter. Discussions with Boeing about acquiring 787s for long-haul routes, including Guangzhou in 2026, are ongoing.

The airline now serves 17 direct destinations, helping reduce regional airfares and travel times. Uganda Airlines’ market share at Entebbe International Airport has grown from 4% in 2019 to 24%, making it the airport’s largest operator. Revenue increased from UGX28 billion in 2019/20 to UGX319 billion in 2023/24.

Additional government priorities include launching Kabalega International Airport in Hoima and completing upgrades at Entebbe, including a new cargo terminal and expanded passenger facilities.

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