By Our Correspondent, DAR-ES-SALAAM Tanzania
According to the 2024/2025 report by Controller and Auditor General (CAG) Charles Kichere, Air Tanzania Company Limited (ATCL) continued to incur heavy losses, with a reported deficit of TSh191.19 billion, highlighting ongoing operational challenges, rising costs, and low aircraft utilization.
According to the report, the loss is a 108 percent increase compared to the previous year, which brings the total loss since the establishment of the company to 748 billion shillings.
The report highlights that despite the expansion of the fleet, the airline has not managed to match revenue generation with the rising costs of leasing and maintenance.
The CAG revealed the loss in his annual financial audit report to President Samia Hassan at Dar es Salaam state house Monday March 30, 2026.
He explained that despite subsidies from the government for pay salaries and operating expenses, the company has faced a major challenge of operating costs exceeding revenue growth by 134 billion shillings and reaching 675 billion shillings.
“The reasons contributing to the loss are operational challenges and flights, flight efficiency being below expectations where on 87 routes, the average passenger load factor was only 55 percent,” said Kichere.
In addition, it has been noted that the use of the Boeing 767-300F cargo aircraft is not optimal, being used contrary to its intended use, where 94 percent of its flights were short and medium-haul instead of long-haul flights that could generate higher income.
He explained that the situation has worsened after the aircraft was grounded, while it continues to cost the company approximately 3.54 billion shillings for leasing and insurance without generating any income.
Also, the weaknesses in ATCL internal control systems, the report noted the existence of payments of 20.61 billion shillings made to agents without proof of reaching passengers.
