The Tanzanian government has allocated TZS283.05 billion shillings (USD109 million) to support expansion and operational improvements at Air Tanzania (TC, Dar es Salaam) in the 2025/26 transport budget, as it seeks to accelerate the state carrier's fleet growth and infrastructure development.

According to budget documents presented to parliament by transport minister Makame Mbarawa on May 13, Air Tanzania Company Limited (ATCL) will receive TZS185.32 billion ($71.5 million) for aircraft acquisitions, spare engine procurement, and rehabilitation of maintenance facilities.

A further TZS97.73 billion (USD37.5 million) has been earmarked for projects to bolster operations, including building a new maintenance hangar, cargo facilities, and pilot training simulators, The Citizen newspaper reported.

According to the budget document viewed by ch-aviation, the Ministry of Transport said its priorities for the 2026/27 fiscal year include acquiring more aircraft, further strengthening ATCL operations, and constructing a new passenger terminal at Dar es Salaam with an annual capacity for 2.5 million passengers.

The ministry acknowledged ongoing financial challenges at the carrier, citing low capital levels and an aircraft ownership structure that weighs on the balance sheet. The ministry is in the final stages of restructuring ownership to improve the airline's financial efficiency, Mbarawa said.

The allocations come as the government highlights what it describes as a decade-long turnaround at the airline since its revival programme began in 2015. Mbarawa told the parliament that ATCL’s fleet had expanded from one aircraft in 2016 to 16 aircraft in 2026.

Passenger traffic rose from 107,166 in the 2016/17 fiscal year to 1.18 million in 2024/25, while annual revenue increased from TZS23 billion (USD880,000) to TZS595.7 billion (USD229.5 million), according to budget figures. Foreign exchange earnings climbed from USD9.85 million to USD157.7 million over the same period.

Between July 2025 and March 2026, the airline carried more than 1.07 million passengers, up 22.38% year-on-year, while cargo volumes reached 4,129.7 tonnes.

ATCL has also expanded its network footprint, growing from 23 service centres in the 2020/21 fiscal year to 33 by March 2026. The network now includes 16 domestic destinations, 14 regional, and three intercontinental.

Active aircraft

According to ch-aviation data, ATCL's 16 aircraft are all in active service except for one stored A220-300 and its only freighter, a B767-300F. This represents a turnaround from the 2023/24 financial year, when the prolonged grounding of its A220-300s (due to Pratt & Whitney PW1000 engine troubles) and its sole DHC-8-Q300, unpaid lease charges, and high operational and maintenance costs resulted in a net loss of TZS534 billion (USD199 million at the time).

The fleet comprises four A220-300s, two B737-9s, the single B767-300F, three B787-8 widebodies, five DHC-8-Q400s, and one Dash-8 Q300.

Meanwhile, Air Tanzania has scheduled 3x weekly flights between Moscow Vnukovo and Dar es Salaam via Zanzibar from May 28, according to schedules published by the Russian airport, the Russian news agency RIA Novosti reported. The report noted that tickets were not yet on sale but that the flights in the airport schedule indicated the airline had reserved slots for the service.

ch-aviation has asked the airline for comment.

In April, Air Tanzania said it was seeking to launch fifth freedom flights between Russia and the Seychelles on a proposed Dar es Salaam-Mahé-Moscow Sheremetyevo route following discussions between Russian President Vladimir Putin and Seychellois President Patrick Herminie at the Kremlin.