Uganda Airlines to turn profitable by 2027 – Bamuturaki

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Summary:

• Uganda Airlines aims to achieve financial independence by 2027, implementing cost-cutting measures after facing substantial losses, with internal revenues already covering 85% of its expenses.

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Kampala, Uganda | THE BLACK EXAMINER | Uganda Airlines is projected to achieve financial independence by 2027, according to Jennifer Bamuturaki, the Chief Executive Officer of the Uganda National Airlines Company. The airline, which faced substantial negative media attention and financial setbacks over the past three fiscal years, is actively implementing strategies to overcome its challenges.

Recent reports from the Auditor General disclosed significant losses totaling Shs 502 billion for the fiscal years 2020/21, 2021/22, and 2022/23. In response, the Public Accounts Committee on Commissions, Statutory Authorities, and State Enterprises (Cosase) conducted a thorough examination of the airline’s operations, contributing to the development of a strategic plan.

Bamuturaki defended the reported losses, attributing them to unavoidable variable and administrative costs. To address these challenges, the company is taking measures such as managing fuel and oil costs, enhancing maintenance processes, optimizing rentals, and improving crew efficiency through training and route expansion.

In her assessment, Bamuturaki emphasized the importance of operational efficiency in reducing costs, particularly fuel expenses, which she attributed to the high cost of fuel in the region. She highlighted ongoing initiatives, including pilot training and process automation, aimed at curbing fuel costs and steering the airline towards financial stability.

Bamuturaki disclosed that the airline’s internal target is to break even within the next three years. Notably, Uganda Airlines already covers 85% of its costs through internal revenue, which is three times more than the support received from the government. The goal is to become self-sufficient and eliminate the need for government financial assistance.

Abderahmane Berthé, the General Secretary of the African Airlines Association (AFRAA), expressed commendation for Uganda Airlines’ performance since its revival in 2019. Despite facing global challenges triggered by the COVID-19 pandemic, the airline has expanded its network, serving 12 destinations in 2023, including intercontinental flights to Dubai, Mumbai, London, and Guangzhou. Berthé believes the airline’s future outlook is promising as it continues to grow and adapt to changing circumstances.

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