Air Tanzania’s annual losses surge 67% to Sh91.8 billion, CAG's new report shows
What you need to know:
- Despite receiving a Sh100 billion subsidy from the government, ATCL faced significant operational challenges that contributed to the mounting losses.
Dar es Salaam. Air Tanzania Limited (ATCL) has reported a loss of Sh91.8 billion for the financial year 2023/24, marking a significant 62 percent increase in losses compared to the previous year. This financial setback places the airline among the loss-making government entities.
The Controller and Auditor General (CAG), Charles Kichere, presented the findings of his audit to President Samia Suluhu Hassan on Thursday March 27, 2025, at the State House in Dar es Salaam.
Despite receiving a Sh100 billion subsidy from the government, ATCL faced significant operational challenges that contributed to the mounting losses.
Mr Kichere attributed the airline’s financial troubles largely to the extended repair time for its Airbus, which led to the grounding of planes for several months, severely affecting operations.
The CAG emphasised the urgent need for ATCL to work closely with the government to explore more efficient operational strategies.
He urged both parties to focus on improving financial management and economic factors to enhance the airline’s performance and ensure its long-term sustainability.
The audit also revealed losses for other government entities, including TTCL with a Sh27.7 billion deficit, Posta with a Sh23.3 billion loss, and East Africa Cables, among others.
