Uganda Airlines continues to struggle with severe financial challenges, as revealed in the latest Auditor General’s report for the financial year ending 2024. The national carrier reported a net loss of Shs 237 billion, marking a slight improvement from the Shs 324.94 billion loss in 2023. However, sustained deficits over the past two years have raised significant concerns about the airline’s long-term financial health and its ability to operate sustainably.
Uganda Airlines, officially known as Uganda National Airlines Company Limited (UNACL), has been grappling with persistent losses that threaten its viability. The reported loss of Shs 237 billion in 2024, though an improvement from the previous year’s losses, still highlights the fragile financial condition of the airline. These continuous losses, which total over half a trillion shillings in the last two years, have sparked concerns regarding the airline’s ability to recover and thrive.
Auditor General Edward Akol emphasized that sustained financial losses pose a significant threat to the airline’s financial sustainability and shareholder value. The situation is further compounded by a range of operational inefficiencies and financial risks, which have raised alarms within Uganda’s public sector.
In response to the Auditor General’s findings, Uganda Airlines’ management stated that they are developing a new ten-year strategy focused on achieving financial sustainability, operational efficiency, and stakeholder engagement. The company is working on initiatives aimed at enhancing revenue and improving cost control, though it remains to be seen whether these measures will have a meaningful impact on the airline’s financial trajectory.
The report also highlighted several financial risks and liabilities facing Uganda Airlines. The company disclosed contingent liabilities amounting to Shs 11.94 billion (USD 3.15 million) related to pending court cases. Additionally, there are concerns over the airline’s dealings with General Sales Agents (GSAs), including unpaid balances and expired contracts that could further strain the company’s finances.
Uganda Airlines’ continued losses and financial risks point to systemic issues within the organization. While the airline’s management is working on a recovery plan, it will require swift and strategic reforms to restore financial health and ensure the airline’s long-term sustainability.