AVIATION

African airlines: Marginal profits amid global aviation boom

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2 weeks ago

African airlines are projected to generate a modest net profit of $72 million in 2025, representing just 0.2 percent of the world’s total air transport profit, according to the latest industry forecasts from the International Air Transport Association (IATA).

This profit translates to an average of $1.3 in net profit per passenger—the lowest among all global regions.

While the global airline industry is expected to reach record revenues of over $1 trillion and net profits of $36 billion, Africa’s share remains limited.

The continent’s carriers face persistent challenges, including high operational costs, heavy statutory taxes and charges, infrastructure gaps, and a chronic shortage of foreign currency in several economies.

These factors continue to constrain growth, despite an expected 8 percent rise in passenger demand for African airlines in 2025.

Africa’s carriers face high operational costs and a low propensity for air travel expenditure in many of their home markets. A shortage of aircraft and spare parts is dampening growth in the region. The shortage of foreign currency in some economies, particularly US dollars, is adding to the region’s challenges. Despite these challenges, there is sustained demand for air travel in Africa.

Globally, the average net profit per passenger is forecast at $7, making Africa’s $1 per passenger profit a stark contrast to more profitable regions such as North America and the Middle East.

The collective net profit margin for African airlines is expected to be the weakest globally at 1.1 percent.

Despite these hurdles, the sustained demand for air travel in Africa and incremental improvements in profitability signal cautious optimism for the region’s aviation sector.

However, the gap between Africa and other world regions highlights the urgent need for structural reforms and investment to unlock the continent’s full aviation potential.