Uganda Airlines asked to cut costs, reduce reliance on govt
The MPs have also asked the country's flagship airline to strengthen its revenue streams to achieve sustainable growth without compromising international standards.
COSASE chairperson Medard Ssegona (Busiro County East, NUP) said the airline continues to struggle with heavy losses despite improved revenue performance. (File photo)
By John Odyek
Journalists @New Vision
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Parliament’s Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has urged Uganda Airlines to adopt what it is calling cost-effective measures.
The MPs have also asked the country's flagship airline to strengthen its revenue streams to achieve sustainable growth without compromising international standards.
Presenting the committee’s report on the Auditor General’s audit of Uganda Airlines for the year ending December 2024, chairperson Medard Ssegona (Busiro County East, NUP) said the airline continues to struggle with heavy losses despite improved revenue performance.
“The committee observed that while Uganda Airlines registered higher revenues in the year under review, direct costs and operating expenses outstripped these earnings, leading to another year of losses. The airline remains dependent on government disbursements to stay afloat,” Ssegona told Parliament on Thursday, September 11, 2025.
Mixed performance
Uganda Airlines’ revenue for 2023/24 rose by 50% shillings 349.6 billion. Growth was driven mainly by increases in passenger revenue (58%), cargo (55%), baggage charges (63%), change fees (86%), expired tickets (20%) and ground handling fees (2,306%).
However, costs also escalated. Direct costs reached shillings 523 billion, pushed up by aviation fuel (34%), crew allowances and salaries, pilot training (31%), catering (43%), and inflight expenses (203%).
Despite reductions in ground passenger expenses, aircraft maintenance, and airport charges, the airline closed the year with a net loss of shillings 237.9 billion.