Just as Uganda Airlines gets $113 million, Air Algerie orders 10 Boeing 737 MAX 8

Just as Uganda Airlines secures fresh funding to rebuild capacity, Air Algerie is moving in the same direction with a fleet upgrade, highlighting how African carriers are repositioning to meet rising travel demand and operational gaps across the continent.

Uganda Airlines recently obtained Ush422.26 billion ($113.4 million) to support its expansion plans. The funding is expected to finance the acquisition of 10 aircraft as part of an effort to boost capacity and strengthen the airline’s route network after fleet shortages disrupted long-haul operations and forced the suspension of some international services.

With limited aircraft, the carrier has faced reduced frequency, tighter scheduling, and higher operational risk when planes are grounded for maintenance. The additional funding is expected to help the airline pursue long-haul routes to Europe, Asia and the Middle East while improving reliability for passengers.

Air Algerie orders 10 Boeing 737 MAX 8, phased delivery

Against this backdrop, Air Algerie said it has ordered 10 Boeing 737 MAX 8 aircraft as part of a national strategy to develop civil air transport. According to Reuters, the acquisition will support efforts to modernize its fleet, expand its route network and improve service quality.

A company statement cited by Reuters said five aircraft are expected in the second half of this year, with the remaining five scheduled for delivery next year. Financial terms were not disclosed. The airline said the expansion is intended to meet domestic and international demand while strengthening its competitive position.

Uganda Airlines funding highlights industry strain

The developments reflect broader changes in Africa’s aviation sector, where carriers are seeking funding, new aircraft, and strategic partnerships to stabilize operations and restore growth. Earlier this week’s funding for Uganda Airlines underscores the pressure airlines face when operating with small fleets, especially as travel demand rebounds and competition intensifies.

Elsewhere, Kenya Airways is pursuing fresh investment after years of heavy debt. The Kenyan government is seeking a strategic investor in a deal valued at up to Ksh258 billion ($2 billion). The National Treasury plans to issue an international expression of interest to attract investors willing to inject between Ksh154.8 billion ($1.2 billion) and Ksh258 billion ($2 billion).

Treasury Cabinet Secretary John Mbadi said the goal is to strengthen the airline financially and restore its balance sheet. Kenya Airways recently reported a loss after tax of Ksh17.16 billion ($132.3 million), compared with a profit of Ksh5.43 billion ($41.9 million) in 2024. Revenue declined to Ksh161.47 billion ($1.24 billion) from Ksh188.5 billion ($1.45 billion), reflecting lower passenger volumes and reduced seat capacity.

Harith General Partners targets aviation growth

In South Africa, FlySafair, which controls more than 60 percent of domestic seat capacity, is navigating ownership scrutiny. In 2024, regulators said the airline breached local ownership rules after trusts and companies held 75 percent of voting rights, following a complaint from rival carrier Lift.

In February, Harith General Partners, which manages over $3 billion in assets, agreed to acquire FlySafair. The transaction, subject to regulatory approvals, would give Harith full control through its aviation unit. Chair Tshepo Mahloele said the deal is expected to close by the fourth quarter, pending clearance from competition authorities and aviation licensing bodies.

Together, these moves show African airlines adjusting strategies—raising funds, ordering aircraft and attracting investors—as they work to rebuild capacity, strengthen finances and improve service across a fast-evolving regional aviation market.