IATA: Africa's Aviation Potential High, But Profitability Remains Low

The International Air Transport Association (IATA) asserts that Africa's aviation industry, despite exhibiting strong potential for traffic growth, continues to operate under some of the most challenging conditions globally, resulting in low profitability. Speaking at IATA's media open days in Switzerland, Director General Willie Walsh highlighted that Africa is projected to experience faster traffic growth than the global average. However, the continent consistently generates the smallest share of global aviation profits, characterized by extremely thin margins.

Walsh noted that while global aircraft and engine deliveries are expected to improve from late 2025 into 2026, demand will still outstrip supply. This, coupled with structural constraints, prevents African airlines from capturing a larger share of aviation's economic value. Kamil Al-Awadhi, IATA Regional Vice President for Africa and the Middle East, further elaborated on the financial weakness, forecasting that African carriers will earn only about $200 million of the estimated $41 billion global net profit in 2026, translating to a mere $1.3 profit per passenger compared to a global average of $7.9. He also criticized high airport charges and government levies, citing Tanzania's security-related charges of up to $96 for a return ticket as an example of costs that hinder growth. Inconsistent visa policies, despite a rise in e-visa adoption, also present a barrier to seamless mobility.

Despite these hurdles, IATA identifies significant long-term opportunities for the continent. Africa's abundant solar power resources could position it as a leading producer of low-cost synthetic aviation fuels (SAF), offering a competitive advantage over regions like Europe with higher renewable energy costs. Additionally, the adoption of a harmonized global standard for digital passports could streamline travel and reduce implementation costs for governments. Al-Awadhi projects Africa to achieve the third-fastest growth rate globally over the next two decades, potentially serving over 400 million passengers annually by 2044, with traffic growth expected to reach approximately 6.0 percent in 2026, surpassing the global average. Realizing this potential, however, depends on governments prioritizing aviation as a development enabler rather than solely a revenue source.