Uganda Airlines (UR, Entebbe) says its "operations will continue unabated" despite a dispute with fuel supplier MixJet over invoices, charges, and fuel prices.
The airline was responding to a report by Uganda's Monitor online newspaper that MixJet was threatening to halt services and pursue legal action to recover USD10 million in outstanding payments, USD6 million of which it had demanded within 48-hours from writing to CEO Jenifer Bamuturaki on November 1. The airline reportedly committed to paying USD2 million as part of an ongoing effort to address the outstanding debt. An unnamed source at the airline told Monitor the delayed payments were jeopardising the continuation of Uganda Airlines' flights to Dubai International and Mumbai International in November.
In reaction, Uganda Airlines said since its inception, it had contracted MixJet to supply fuel, having paid USD140 million to the fuel supplier between July 2019 and July 2024. It said the outstanding amount due to MixJet was about USD8 million and not USD10 million as claimed.
According to Uganda Airlines, the payment delay was due to discrepancies in invoices, inflated charges, and high fuel prices. Uganda Airlines insisted on reconciling fuel uplifts and tech logs before making payments.
"Over time, the airline has received some inflated fuel invoices, high market prices, erroneously billed and over-invoiced [sic], and consistent threats to withdraw services without due warning to the detriment of our operations. The airline will reconcile every invoice and, after satisfying itself, pay the supplier within a reasonable time," it stated.
ch-aviation has reached out to MixJet for comment.
