Airline industry at crossroads globally, regionally, locally —IATA

THE aviation industry is at a pivotal moment in history, with global developments, regional transformation, and local ambition intersecting.

According to Kamil Al-Awadhi, Regional Vice President for Africa and the Middle East at the International Air Transport Association (IATA), the industry is facing real challenges, including disrupted routes, rising costs, and constrained connectivity, as the world witnesses a retreat from openness, with trade barriers, sanctions, and geopolitical tensions reshaping global markets.

Al-Awadhi said this while delivering his speech at the Aviation Africa 2025  Summit and Exhibition holding from September 4 to 5 in Kigali, Rwanda.

According to him, despite these challenges, Africa’s aviation sector continues to show resilient performance, with African carriers recording a 6.7 per cent year-to-date increase in passenger traffic as of July 2025, reflecting sustained recovery and rising demand for both intra-African and long-haul connectivity.

The cargo side, he said, also posted a 9.4 per cent year-on-year increase in air cargo demand in July, marking their strongest monthly performance since August 2024.

Al-Awadhi emphasized the importance of aviation in Africa, noting that it supported 8.1 million jobs and contributed $75 billion to Africa’s GDP in 2023.

“Every aviation job supports 22 others across the economy, highlighting the multiplier effect of connectivity. The African aviation market is forecast to grow at 4.1 per cent annually over the next 20 years, reaching 411 million passengers, with East Africa leading in expected growth, followed by Central and West Africa, Southern Africa, and Northern Africa,” he said.

However, Al-Awadhi said Africa’s aviation potential is constrained by fragmentation, high costs, and underdeveloped infrastructure.

He stressed the need for strategic priorities, including connecting the continent and strengthening intra-African trade.

“The Single African Air Transport Market (SAATM) was created to open skies across Africa, increase competition, reduce fares, and expand routes, but progress on implementation remains slow, with only 38 countries signing up.

“Visa openness is essential to connectivity, so Al-Awadhi encouraged governments to adopt visa-free access and e-visas to support tourism, trade, and regional integration,” he said.

He cited Rwanda, Benin, The Gambia, and Seychelles as examples of countries that have implemented visa-free access to all Africans.

“The Cape Town Air Access initiative is a successful example of targeted collaboration delivering real economic impact, attracting 18 new routes and expanding 23 others, contributing over $290 million in tourism spending and creating more than 10,000 jobs,”  he stated.

Al-Awadhi, said the African Continental Free Trade Area (AfCFTA) has the potential to lift millions out of poverty by building a single market of 1.3 billion people, and aviation is key to achieving this ambition.

However, he said intra-African trade accounts for only is 15 per cent of the continent’s total trade, compared to over 60 per cent in Europe.

Al-Awadhi emphasised the need for governments to recognize aviation as a strategic enabler of trade, not just a source of tax revenue, and to invest in aviation infrastructure, liberalize markets, and align policies to build resilient supply chains and unlock new economic corridors.

“To unlock these opportunities, governments must prioritize aviation as a strategic enabler of economic growth, taking five essential actions: making aviation a strategic priority, improving aviation safety, ensuring cost competitiveness, investing in infrastructure, and accelerating liberalization.”

He cautioned against the increasing trend in API-PNR charges in Africa, emphasising that border security is a state’s responsibility, and airlines and travelers should not bear this financial burden.

The issue of blocked airline funds was also highlighted, with $940 million in airline revenues being withheld by African governments as of August 2025, undermining connectivity and violating international agreements.

Al-Awadhi stressed the need for collaboration, political will, and vision to make aviation a driver of inclusive, sustainable prosperity for all Africans.

He concluded that Africa’s aviation future depends on the industry’s ability to respond to global challenges and capitalise on regional opportunities.

“With the right policies and investments, aviation can be a powerful engine of economic growth, integration, and development, unlocking prosperity for all Africans,” he said.

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