Uganda Airlines loses rose from Shs15billion in its first year to Shs105billion in its second year.
This has been revealed Auditor General’s report which highlights the performance of the national carrier in the last two years.
According to the report, Uganda Airlines was unable to realise its planned revenue, yet the expenditure on operations was way above projected costs. “The company only realised $9.9m (10%) of the projected revenue of $92.8million,” Daily Monitor quotes a report by the Auditor General, John Muwanga.
The airline further incurred unplanned costs totalling at least $29.2million on direct costs and $3.6million on indirect costs.
Muwanga warned in the report that the deficits accumulated during the 2018/19 financial year expose the airline to a risk of failing to meet its future obligations and investments.
Uganda Airlines relaunched in August 2018 with two aircrafts. Its fleet has since grown to 6 aircrafts.
However, its latest acquisition, the Airbus A330-800Neo remain grounded.