The Tanzanian government has approved a $109 million budget to strengthen and expand the operations of Air Tanzania Company Limited as part of its transport sector plans for the 2025/26 fiscal year.
According to budget details presented to parliament by Transport Minister Makame Mbarawa on May 13, a major portion of the funding will go toward aircraft acquisition, maintenance upgrades and operational expansion.
Out of the total allocation, about $71.5 million has been set aside for the purchase of aircraft, procurement of spare engines and rehabilitation of maintenance facilities.
Another $37.5 million will be used to support operational improvement projects, including the construction of a new maintenance hangar, cargo centres and pilot training simulators.
The government also revealed that plans are underway to build a new passenger terminal in Dar es Salaam capable of handling about 2.5 million passengers annually.
According to the Ministry of Transport, the expansion forms part of broader efforts to strengthen Air Tanzania’s operations and improve its competitiveness within the aviation sector.
Despite the progress recorded by the airline, the ministry acknowledged ongoing financial difficulties affecting the national carrier.
The government cited low capitalisation and the current aircraft ownership structure as key issues impacting the airline’s financial position.
Mbarawa disclosed that authorities are already in the final stages of restructuring the airline’s ownership model to improve efficiency and strengthen its financial stability.
The minister said the latest investment reflects the success of the airline’s revival programme launched in 2015.
Speaking before parliament, Mbarawa stated that Air Tanzania’s fleet had grown significantly over the years, expanding from just one aircraft in 2016 to 16 aircraft in 2026.
Official figures presented in the budget also showed strong growth in passenger traffic and revenue generation.
Passenger numbers reportedly increased from 107,166 during the 2016/17 fiscal year to about 1.18 million in 2024/25.
Annual revenue also rose sharply from $880,000 to approximately $229.5 million within the same period.
Foreign exchange earnings equally climbed from $9.85 million to $157.7 million.
Between July 2025 and March 2026 alone, the airline transported over 1.07 million passengers, representing a 22.38 per cent increase compared to the previous year.
Cargo operations also recorded growth, with freight volumes reaching 4,129.7 tonnes during the period.
Air Tanzania further expanded its operational reach from 23 service centres in the 2020/21 fiscal year to 33 centres by March 2026.
The airline currently operates across 16 domestic routes, 14 regional destinations and three international long-haul routes.
