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Uganda Airlines eyes profitability with strategic expansion and fleet growth amid regional competition 

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Simon Kabayo
Simon Kabayohttps://eagle.co.ug
Reporter whose work is detailed

Uganda Airlines is making strides toward profitability, with revenue targets within reach, according to company management.

The five-year-old carrier has been aggressively expanding its network, launching new domestic and international routes in a bid to cement its position in the region.

The airline’s latest route additions, including Abuja, Lusaka, Harare, Dubai, and Mumbai, are part of its broader strategy to enhance connectivity infrastructure as a government agency. Uganda Airlines currently operates a fleet of six aircraft, comprising four CRJ900LRs and two Airbus A330-800neos.

“We are moving closer to profitability,” said Adedayo Olawuyi, Chief Commercial Officer. The airline achieved 83 percent of its target revenues in December last year, a milestone that underscores its growth trajectory.

Uganda Airlines’ expansion plans are poised to continue, with the addition of four Boeing 787 Dreamliners, four A320neos, and a Boeing 737-800 Freighter for cargo operations. This will bring the total fleet to 13 by 2030, enabling the airline to tap into the growing demand for air travel in Africa.

According to the International Air Transport Association (IATA), African airlines saw an 11.9 percent jump in demand in September, with capacity and load factor improving. The region’s strong growth is expected to continue, driven by increasing economic ties and tourism.

However, the industry faces challenges, including the need to reduce greenhouse gas emissions. IATA’s Director General, Willie Walsh, warned of a looming capacity crunch and emphasized the importance of sustainable growth.

“We will soon face a capacity crunch in some regions, which threatens to curtail these economic and social benefits,” Walsh said. “Airlines are making significant investments to achieve net-zero carbon emissions by 2050.”

Monica Rubombora, Uganda Airlines Country Manager in South Africa, acknowledged the challenges but expressed confidence in the airline’s strategy. “We are five years old, and we know what to do and where to be in the greater aviation industry,” she said.

Rubombora noted that the airline’s 10-year plan involves heavy investment in fleet and routes, which may delay profitability. “We cannot be making profit now, but the growth trajectory is we should be profitable in about 10 years’ time.”

As Uganda Airlines expands its operations, it faces increasing competition from regional and international players. Emirates recently increased flights to Entebbe, while Qatar Airways established a hub in Kigali, Rwanda.

Despite these challenges, Uganda Airlines remains committed to its vision of enhancing connectivity infrastructure. The airline will continue signing bilateral agreements with other players and exploring opportunities to open up Uganda’s airspace to other countries.

With its expansion push and focus on sustainability, Uganda Airlines is poised to play a significant role in Africa’s growing aviation market.

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