KAMPALA, Uganda — Uganda Airlines is set to receive additional government funding in the 2025/2026 financial year as part of a 6.92 trillion Ugandan shilling ($1.92 billion) investment in the country’s transportation infrastructure, Finance Minister Matia Kasaija announced.
Kasaija, in his national budget speech, did not specify the exact amount allocated to the state carrier but stated the budget covers “integrated transport and infrastructure services including roads, bridges, railways, water transport and air transport.”
He confirmed that Uganda Airlines would receive further capital to acquire more aircraft and expand its passenger and cargo routes. “In the next financial year 2025/26, priority interventions will include: additional capitalization of Uganda Airlines to acquire more aircraft; to open up more routes for passenger and cargo transportation, and handling capacity,” Kasaija said.
Uganda Airlines currently operates four CRJ900LR regional jets and two A330-800Ns. The airline is finalizing an order with Airbus for four additional aircraft: two A320-200Ns and two A321-200Ns. In the interim, it plans to dry-lease one A320-200 and one A321-200 by October 2025. Additionally, the airline has extended a 12-month ACMI (Aircraft, Crew, Maintenance, and Insurance) contract for one A320-200 from DAT – Danish Air Transport. The government has also approved the wet lease of a B737-800(F), and discussions with Boeing continue regarding the potential purchase of B787s for flights to Guangzhou in 2026.
Kasaija highlighted the airline’s impact on travel, noting that it now flies to 17 direct destinations, which has “contributed to reduced travel time at a more affordable cost.” He added that the presence of the national carrier has led to a decrease in regional airfares.
The minister stated that Uganda Airlines’ market share at Entebbe International Airport has grown from 4% in 2019 to 24%, making it the largest operator at the country’s main gateway. He also reported a significant increase in revenue, from 28 billion shillings ($7.8 million) in the 2019/20 fiscal year to 319 billion shillings ($88.9 million) in 2023/24.
“With increased capitalization and acquisition of additional aircraft, the airline will increase efficiency, and travelers to and from Uganda will enjoy direct and cheaper travel to more international destinations,” Kasaija said.
In addition to supporting Uganda Airlines, the government will prioritize the operationalization of Kabalega International Airport, which is under construction in the oil-rich Hoima region. Upgrades to other strategic airports and aerodromes across the country will also continue. Kasaija mentioned that the near-complete expansion of Entebbe International Airport, including a new cargo center and passenger terminal, is expected to further improve logistics and passenger experience.
