Uganda Airlines launches new route to London amidst questions on profitability

Uganda Airlines has officially launched direct flights to London, United Kingdom.

The airline will fly four times a week using the Airbus A330-800neo. 

Ms Jennifer Bamuturaki, the Uganda Airlines CEO said in a Thursday press briefing in which the London route was launched, the lunch coincides with the airline’s 5th anniversary, marking the end of the establishment phase and setting the course for a long term growth and expansion. 

She noted that the acquisition of the London route followed meticulous planning, preparations and many setbacks since 2020 when the airline first acquired slots in the UK, which was partly disrupted by Covid-19 that impacted many aspects of the aviation industry such as manpower and supply chains, thus affecting the airline’s ability to complete all processes in time. 

“This route is important because it connects Uganda to critical businesses in Europe and beyond, but also benefits a number of Ugandans in the diaspora,” Bamuturaki said. 

Besides shortening travel times, the route is expected to provide an opportunity to exporters of fresh products and  improve Uganda’s export earnings to the UK, which currently stand at $22.6 million. 

Over the past years, the airline has expanded its African network flying to 14 destinations in Africa.

Bamuturaki noted that, “once London is up and running, we intend to open more destinations within Africa.”

Uganda Airlines is currently the biggest operator out of Entebbe International Airport with at least 77 departures per week. The London route will increase overall departures from 77 to 81 per week. 

Profitability troubles 

However, Uganda Airlines’ expansion plan to dominate the aviation industry has been met with financial hurdles after a new Auditor General’s report indicated that the Airline had for the year ended June 2024 posted a net loss of UGX 238 billion, which, was, however, a 26% drop from the UGX 325 billion loss incurred in the same period in 2023. 

The sustained losses, according to the Auditor General, threatened the financial sustainability and shareholder value for the airline. 

Uganda Airlines also suffered a setback last month after suspending its flights to DR Congo’s capital, Kinshasa, after violent riots and attacks on several foreign embassies.  

It remains to be seen whether the London route will turn around the airline’s fortunes, which has previously indicated that it expected to break even after five years.