Tanzania government allocates $109m to Air Tanzania for fleet expansion, infrastructure upgrades, and operational improvements in the 2025/26 budget

The Government of Tanzania has approved $109 million to support the expansion and operational strengthening of Air Tanzania Company Limited (ATCL) in the 2025/26 transport budget.

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The allocation, presented to parliament by Transport Minister Makame Mbarawa, is aimed at boosting the national carrier’s capacity through fleet expansion, maintenance upgrades and infrastructure development.

Of the total amount, $71.5 million has been set aside for aircraft acquisition, procurement of spare engines, and rehabilitation of maintenance facilities to improve operational efficiency.

An additional $37.5 million will fund supporting infrastructure projects, including the construction of a new maintenance hangar, cargo facilities, and pilot training simulators.

The Ministry of Transport also outlined longer-term priorities for the 2026/27 fiscal year, which include further aircraft purchases and the construction of a new passenger terminal in Dar es Salaam with a capacity of 2.5 million passengers annually.

Officials acknowledged existing financial challenges facing the airline, including low capital levels and structural issues related to aircraft ownership that affect its balance sheet.

Mbarawa said reforms are underway to restructure the airline’s ownership model in order to improve financial performance and operational sustainability.

The latest funding comes as the government highlights a decade-long turnaround plan for Air Tanzania since the launch of its revival programme in 2015.

According to budget data, the airline has expanded its fleet from one aircraft in 2016 to 16 aircraft in 2026, alongside significant growth in passenger traffic and revenue.

Passenger numbers rose from 107,166 in 2016/17 to 1.18 million in 2024/25, while annual revenue increased from $880,000 to $229.5 million over the same period.

Between July 2025 and March 2026, ATCL carried more than 1.07 million passengers, reflecting a 22.38 percent year-on-year increase, with cargo volumes also rising steadily.

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The airline has expanded its route network from 23 service centres in 2020/21 to 33 by March 2026, now covering domestic, regional and intercontinental destinations.