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Despite a global aviation recovery, African airlines continue to grapple with profitability challenges, lagging behind their international counterparts in financial performance. While passenger traffic has rebounded to near pre-pandemic levels, high operational costs, fragmented routes, and infrastructure limitations have kept the continent’s carriers from achieving sustainable profits.
According to the International Air Transport Association (IATA), African airlines collectively posted a modest net profit of $200 million in 2024, marking their first positive financial result since the COVID-19 pandemic. However, this figure pales in comparison to North America’s $11.5 billion profit and Europe’s $9.6 billion earnings. Africa’s aviation sector accounts for just 0.6% of global net profits, highlighting the stark disparity in financial performance.
One of the key challenges facing African airlines is low passenger load factors, which stood at 75% in 2024—significantly below global averages. While this represents an improvement from previous years, underutilization of aircraft remains a persistent issue, often due to limited connectivity, protectionist policies, and inconsistent business strategies.
High operational costs further strain profitability, with many African carriers relying on aging fleets and expensive aircraft leasing agreements. Maintenance expenses are disproportionately high, exacerbating financial difficulties for airlines struggling to compete in an increasingly competitive market.
Despite these hurdles, industry experts remain optimistic about Africa’s aviation future. Passenger numbers are projected to more than double by 2043, driven by rising demand for air travel and economic growth across the continent. The African Airlines Association (AFRAA) has called for greater liberalization of air transport markets, urging governments to implement the Single African Air Transport Market (SAATM) to enhance connectivity and reduce costs.
While African airlines have made strides in rebuilding capacity, profitability remains elusive. The sector’s ability to overcome structural challenges will determine whether it can capitalize on future growth opportunities and establish a more competitive presence in global aviation.