Uganda Airlines is grappling with severe infrastructure gaps and deep financial distress, operating without its own aircraft hangar, full-fledged maintenance facility, or dedicated catering department. Acting Chief Executive Officer Girma Wake revealed these operational vulnerabilities during appearances before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), which is reviewing the carrier’s performance and the Auditor General’s report for the 2024/25 financial year.
Girma, an aviation veteran appointed by President Yoweri Museveni in February 2026 to stabilize the struggling airline, told lawmakers that the lack of internal self-sufficiency has left the state-owned carrier heavily reliant on external providers. The absence of an airline-owned hangar has made independent maintenance impossible, forcing the carrier to outsource critical work.
“We talk of a maintenance organisation without a maintenance facility,” Girma told the parliamentary committee. While the airline relies partly on external maintenance providers in France and South Africa for its Airbus A330 fleet, Girma emphasized that this reliance carries heavy risks across Africa due to the scarcity of licensed regional maintenance organizations compared with Europe. He added that the carrier also depends on outside vendors for catering and relies on rented warehouse space for its nascent ground-services department.
The infrastructure shortages have intensified the crisis surrounding fleet groundings. Engine issues recently grounded two Airbus A330 wide-body aircraft and one CRJ900 regional jet, crippling nearly 60 percent of the airline’s passenger capacity and forcing management to lease replacement aircraft.
Addressing the groundings, Girma defended the quality of the fleet, rejecting notions that the aircraft were old or defective. He noted that the Airbus A330s and CRJs are modern, high-performing aircraft. However, he laid the blame for the A330 groundings squarely on financial mismanagement and missed contractual obligations. Because the airline suffered from inadequate working capital, it missed regular payments to engine manufacturer Rolls-Royce, prompting the company to withdraw parts and maintenance services.
These operational hurdles run parallel to a grim financial reality. According to the Auditor General’s report, Uganda Airlines posted a net loss of Shs230.816 billion for the financial year ending June 2025, showing virtually no improvement from the Shs231.584 billion loss recorded the previous year. Chief Finance Officer Allan Joel Kyeyune reported that the airline has accumulated roughly 78 million US dollars in debt over three years, with debt expanding by an average of 60 percent annually as revenues failed to cover ballooning operational costs.
Despite 19.2 percent revenue growth during the 2024/25 fiscal year, soaring fuel, leasing, maintenance, and supplier expenses eroded the gains. Passenger services generate about 87 percent of revenue, while cargo contributes 11 percent, leaving the carrier vulnerable to market shocks due to its narrow revenue streams. Accumulated arrears have climbed to Shs235.70 billion, while the government has poured Shs1.984 trillion into the carrier overall.
To combat these systemic issues, management has initiated a comprehensive restructuring plan. The board has approved a new organizational structure featuring a central planning unit and a chief customer services position to coordinate future fleet, infrastructure, and capital requirements. The long-term strategy involves gradually bringing maintenance, catering, and ground handling in-house, which includes building a dedicated hangar, training local technicians, and expanding cargo capabilities.
Since its commercial relaunch in August 2019 following the liquidation of the original carrier in 2001, the modern Uganda Airlines has worked to expand its footprint. Management plans to dry-lease smaller aircraft for regional connectivity ahead of scheduled deliveries of four Boeing 737-8s and four Boeing 787-9s in the early 2030s. Under Girma’s leadership, the airline hopes to steer through its current turbulence and build a self-sustaining commercial framework capable of surviving competitive market pressures.
