Uganda Airlines to break even in seven years – experts
President Museveni (in white) disembarks from one of Uganda Airlines CRJ900 Bombardiers at Entebbe International Airport in 2019. PHOTO | FILE
What you need to know:
- The AFRAA team flew into the country yesterday on the invitation of Uganda Airlines and Ministry of Works and Transport.
The general secretary of African Airlines Association (AFRAA), Mr Abderahmane Berthe, has said it will take Uganda Airlines between five and seven years to turn a profit.
Speaking during a press conference organised by the Uganda Airlines and Ministry of Works and Transport in Kampala yesterday, Mr Berthe appealed to Ugandans to remain calm and give the company more time.
Mr Berthe explained that just like elsewhere on the African continent, the airline industry was hugely devastated by the Covid-19 pandemic, with companies registering net losses.
“Making profits in a normal situation is five years [from commencement of the airline operations], but after the unforeseen Covid-19 pandemic, it can even take the country seven years to post a profit,” Mr Berthe said.
“In 2020, loss of revenue in African airlines stood at $22b in 2021. In 2022, the loss is estimated to be $3.5b,” he said.
Last week, Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) commenced investigations into the mess at the Uganda Airlines following the Auditor General’s report for the Financial Year 2020/2021, where it was discovered that the national carrier made losses amounting to Shs498b since its commencement in August 2019.
Mr Berthe emphasised that running an airline industry needs a good business plan, network and experience, adding that success partly depends on government funding.
The AFRAA team flew into the country yesterday on the invitation of Uganda Airlines and Ministry of Works and Transport.
Meanwhile, Mr Berthe revealed that next year in November, Uganda will host airline delegates from the African continent for the AFRAA annual general assembly since the country has good facilities for such functions.
He said he was impressed by the services he received at Uganda Airlines during his journey to Uganda, which he said should be maintained for the growth of the industry.
Ms Maureen Kahonge, AFRAA senior manager for business development and communication, said the annual general meeting will put aviation and Uganda Airlines on the map.
Works and Transport minister Katumba Wamala said the assembly will help build a good network and connectivity with other countries, and also boost Uganda’s trade and tourism sector.
