Uganda’s state-owned national carrier, Uganda Airlines, has signed an initial agreement with Boeing to acquire 10 aircraft in a deal valued at nearly $1 billion, moving to scale up operations beyond its current position as a smaller regional operator.

The deal, signed June 10, includes eight passenger jets and two cargo aircraft. President Yoweri Museveni and senior government officials attended the ceremony, which positions the airline to expand its international flight schedules and lower unit operating costs.

Uganda Airlines expands continental fleet capacity

Under the agreement, the carrier will purchase eight passenger aircraft, each configured for 294 seats. The cargo portion consists of one converted Boeing 767 wide-body freighter and one converted Boeing 737 freighter, according to Ugandan transport officials.

Uganda Airlines Acting Chief Executive Officer Girma Wake signed the document for the carrier, while Boeing Executive Vice President for Africa Sales Anbessie Yitbarek represented the manufacturer. The airline will make an initial payment of $122 million.

The first phase of the agreement involves four large passenger jets, though officials declined to provide specific delivery dates. The capital expenditure reflects a policy shift by the government, which has decided to fund fleet growth directly to avoid high long-term aircraft leasing costs.

The carrier is trying to stabilize its schedules after severe capacity constraints. Fleet shortages recently forced Uganda Airlines to suspend several international routes, and it had to lease a Boeing Dreamliner from Ethiopian Airlines to maintain its long-haul commitments to Europe, Asia, and the Middle East.

East African aviation expansion accelerates

Uganda’s parliament previously approved a supplementary budget allocation of Ush1.696 trillion to stabilize state enterprises. From that funding, the airline secured Ush422.26 billion ($113.4 million), which will cover the cash down payment required by Boeing to start assembly.

The 10-aircraft order represents an effort by Uganda to close the market-share gap with larger neighbors like Kenya Airways. However, the carrier still operates at a fraction of the size of Ethiopian Airlines, which is currently the dominant state carrier in East Africa.

Ethiopian Airlines is moving to counter regional rivals by preparing an order for 25 narrow-body commercial jets. The Addis Ababa-based carrier reported $4.4 billion in revenue for the first half of its 2026 financial year, driven by high cargo yields and rebounding passenger traffic.