Uganda Airlines is set for another round of capital injection as government moves to expand the national carrier’s fleet, open new routes, and strengthen its role in driving the country’s trade, tourism, and international connectivity.
The announcement was made by Finance Minister Matia Kasaija while presenting the 2025/26 national budget at Kololo ceremonial grounds on Thursday.
“Madam Speaker, 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,” Kasaija stated.
The latest capitalisation plan comes five years after President Yoweri Museveni revived the national carrier, which had ceased operations in the early 2000s.
Since its relaunch, Uganda Airlines has steadily grown its network and market presence.
The airline currently operates 17 direct destinations across Africa, the Middle East, Asia, and Europe — including long-haul flights to London.
“The airline is now flying to 17 direct destinations, which has contributed to reduced travel time at more affordable cost,” Kasaija told Parliament.
Ticket costs
He noted that Uganda Airlines’ entry into the regional aviation market has introduced new competition, forcing other airlines to lower their ticket prices. “For example, a return air ticket to Nairobi has stabilised at about USD 300, compared to USD 800 in 2019.”
The airline’s growth has also been reflected in its market share and revenue performance. According to Kasaija, Uganda Airlines has grown its market share from 4% in 2019 to 24% of all air traffic out of Entebbe International Airport today, making it the single largest operator at Uganda’s main aviation hub. Revenue has also risen sharply from Shs 28 billion in the 2019/20 financial year to Shs 319 billion in 2023/24.
In addition to passenger travel, Uganda Airlines is increasingly positioned as a strategic enabler of trade and tourism. The airline’s growing cargo capabilities are expected to open new opportunities for exporters, especially for Uganda’s perishable goods, such as flowers, fish, fruits, and pharmaceuticals, to access new markets in Europe, the Middle East, and Asia.
Kasaija emphasized that alongside the airline’s growth, government is investing heavily in supporting aviation infrastructure. “The upgrade, rehabilitation and expansion of Entebbe International Airport is nearly complete. The expanded airport has a new cargo facility, and a new passenger terminal, among others. This is going to further improve passenger experience, trade and tourism,” he said.
In addition to Entebbe, government is preparing to operationalise Kabalega International Airport in the oil-rich Albertine region, while also rehabilitating and upgrading strategic aerodromes across the country to promote domestic air connectivity.
For the 2025/26 financial year, government has allocated Shs 6.92 trillion towards integrated transport and infrastructure services, which include roads, bridges, railways, water transport, and air transport, Kasaija disclosed.
The continued investment in Uganda Airlines reflects government’s long-term ambition to position Uganda as a regional logistics and tourism hub, while also addressing the high cost and inconvenience of air travel that many Ugandans faced prior to the carrier’s revival.
However, industry experts note that for Uganda Airlines to achieve long-term sustainability, it must continue improving operational efficiency, strengthen management systems, and build strategic partnerships that ensure its competitiveness in a highly competitive global aviation sector.
