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Three national airlines in the region — Kenya Airways, Uganda Airlines and Air Tanzania, — are flying in the loss-making zones and could remain in trouble for years to come, experts have warned, For instance, Uganda Airlines, in the news for the past fortnight as a parliamentary oversight committee probed its operations, could remain trapped in the loss position for decades, experts on airline business have observed…
Sources say the airline is expected to report further losses for the 2021/22 financial year that ended in June. The losses, though anticipated at this stage of the business, will be well over initial projections, driven by a mismatch in revenue growth and cost escalation as the airline launched its first intercontinental flight to Dubai last October, and a sharp rise in fuel costs as the air transport industry restarted globally.
The parliamentary probe revealed that the airline made losses worth Ush164 billion ($43 million) during 2020/21 fiscal year. That figure represented a 37 percent deviation off projections for the year. It is again expected to be off-target by 53 percent in the numbers that will be reported for the financial year that ended last June.
