The Tanzanian government has allocated $109m to support the expansion and operational improvement of Air Tanzania Company Limited in the 2025/26 transport budget.
According to budget documents presented to parliament by the Minister of Transport, Makame Mbarawa, on 13 May, the national carrier will receive $71.5m for aircraft acquisition, procurement of spare engines, and rehabilitation of maintenance facilities.
The Citizen reported that an additional $37.5m had been earmarked for projects aimed at strengthening operations, including the construction of a new maintenance hangar, cargo facilities, and pilot training simulators.
The Ministry of Transport stated in the budget document that its priorities for the 2026/27 fiscal year include acquiring more aircraft, strengthening ATCL operations, and constructing a new passenger terminal in Dar es Salaam with an annual capacity of 2.5 million passengers.
The ministry, however, acknowledged the airline’s financial challenges, citing low capital levels and an aircraft ownership structure affecting its balance sheet.
Mbarawa said the ministry was in the final stages of restructuring the ownership model to improve the airline’s financial efficiency.
The allocations come as the government highlighted what it described as a decade-long turnaround at the airline following the launch of its revival programme in 2015.
Mbarawa told parliament that ATCL’s fleet had expanded from one aircraft in 2016 to 16 aircraft in 2026.
Budget figures showed that passenger traffic increased from 107,166 in the 2016/17 fiscal year to 1.18 million in 2024/25, while annual revenue rose from $880,000 to $229.5m.
Foreign exchange earnings also climbed from $9.85m to $157.7m within the same period.
Between July 2025 and March 2026, the airline transported more than 1.07 million passengers, representing a 22.38 per cent year-on-year increase, while cargo volumes reached 4,129.7 tonnes.
ATCL also expanded its network footprint from 23 service centres in the 2020/21 fiscal year to 33 by March 2026.
The network currently comprises 16 domestic destinations, 14 regional destinations, and three intercontinental routes.
