Uganda National Airlines Company Limited (UNACL) is banking on a series of cost-cutting reforms to rescue its books, but lawmakers heard earlier this month that the national carrier still posted a staggering net loss of sh237.855 billion in 2024.
The company’s Chief Executive Officer, Jennifer Bamuturaki, disclosed that negotiations with a new American spare parts supplier will help reduce expenditure by over sh9 billion annually.
She was appearing before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on Thursday, August 14, 2025, during discussions on the Auditor General’s (AG) report for the year ending December 2024.
The committee is chaired by Busiro East MP Medard Lubega Ssegona (NUP).
According to the AG, while UNACL recorded a 26.5% reduction in losses compared to 2023, the carrier remains deep in the red. In 2023, losses stood at sh323.5 billion, while in the 2021/22 financial year, they amounted to sh265.9 billion.
Bamuturaki admitted that fuel costs, depreciation, and crew allowances were the leading loss drivers, undermining operational performance. “Internally, we are renegotiating contracts to the bone and removing contentious clauses,” she told MPs, adding that a new spare parts deal was a key part of the reforms.
Spare parts supplier switch
Bamuturaki revealed that Lufthansa Technik, one of the world’s largest aircraft maintenance firms, had stopped supporting the CRJ aircraft, which form part of Uganda’s regional fleet. This forced UNACL to seek alternatives.
“One of the companies we have approached is an American company which will give us a significant reduction of about $100,000 (sh356.8 million) a month. Because with Lufthansa and other suppliers, we have had to pay a monthly retainer,” she explained.
The switch, she noted, would save the airline over sh4.2 billion annually, with projections pointing to more than sh9 billion in total savings once combined with other measures.
Cargo and ground handling savings
Beyond spare parts, Bamuturaki said the airline had cut costs by taking ground handling services in-house. At its 2019 relaunch, UNACL relied on Entebbe Handling Services (ENHAS), DAS, and at one-point Menzies Aviation Uganda.
“Since we took over the function, the airline has saved about $250,000 (sh850 million),” she said.
Maintenance has also been a focus. The airline now uses its own team of engineers, many of them Ugandans who returned home, to maintain the CRJ fleet. This followed the exit of SAMCO, a foreign supplier previously contracted for CRJ maintenance.
“With our own Approved Maintenance Organisation (AMO) certified by CAA, we save about €2 million (sh7.8 billion) annually,” Bamuturaki revealed.
Hoarding and supply chain delays
Despite the reforms, MPs pressed for answers on why Bombardier Aerospace, the CRJ manufacturer, is not supplying parts directly. COSASE chairperson Medard Ssegona asked whether the original procurement negotiations had failed to address such critical issues.
“Wouldn’t we have catered for this in negotiations? Is there still production of CRJs globally?” he asked.
Bamuturaki responded that Bombardier had sold the CRJ programme to Mitsubishi, and the aircraft are no longer in production. She added that global supply chain disruptions had worsened the spare parts challenge.
“These parts are hoarded, and by the time you process payments, prices go up or another airline picks them up,” she explained. “Normally an Aircraft on Ground (AOG) should be sorted within 72 hours. But sometimes we fail to secure the spare parts in time, leading to delays and higher costs.”
MPs demand accountability
Kashari South MP Nathan Itungo (Independent) argued that those who negotiated the original Bombardier deal must be held accountable.
“Our Constitution is very clear. On matters of accountability, one can be called to account even when one has ceased office. So, through you, Mr Chairman, can we know the team that participated in the procurement? If need be, summon whoever was in charge to account,” he demanded.
Records show that the CEO of UNACL at the time of the aircraft deal was Ephraim Bagenda. MPs insisted that COSASE invoke its powers under Article 90 of the Constitution to compel testimony from those behind the negotiations.
CRJ fleet future in doubt
The future of Uganda’s CRJ fleet is also uncertain. Bamuturaki admitted that many regional competitors are phasing out CRJs after 10 to 12 years of service. Uganda’s jets, manufactured in 2017, are still within their usable years, but sourcing spares and ensuring long-term sustainability is becoming increasingly difficult.
“It’s a plane that fits the short regional routes well,” she said. “A 75-seater jet is fast enough and stable too. But finding an equivalent replacement will be an uphill task when the time comes.”
Balancing reforms and mounting losses
While the savings from new maintenance arrangements, ground handling, and internal engineering total more than sh18 billion annually, MPs noted that such reforms remain small compared to the sh237 billion net loss.
“Your cost-cutting is commendable, but how does sh18 billion compare to sh237 billion? What exactly is the strategy to bring this debt under control?” one MP asked.
Bamuturaki maintained that the reforms are part of a gradual turnaround strategy, citing global industry turbulence and Uganda’s relative youth in commercial aviation.
However, critics argue that unless the airline addresses structural issues such as route viability, load factors, and competitive pricing its losses will continue to dwarf the savings.
The road ahead
Uganda Airlines was relaunched in 2019 amid hopes of boosting trade, tourism, and national prestige. But persistent losses and recurring questions over procurement, governance, and strategic planning have left the carrier fighting for survival.
As COSASE probes deepen, MPs are demanding accountability not only from current management but also from past decision-makers who oversaw the multi-million-dollar aircraft acquisitions.
For now, Bamuturaki is betting on incremental savings, renegotiated contracts, and self-reliance in technical services to reduce the bleeding. Yet with sh237 billion still on the books, lawmakers and taxpayers remain skeptical about how soon Uganda Airlines can truly take off financially.
