Berthe: African Airlines struggle with minimal profit margins amid rapid passenger growth

African airlines are expected to transport 137.3 million passengers by 2026, marking a significant 21.5% increase from the previous year.

Despite this surge in demand, the industry’s profit margins remain critically low at just 0.2%, one of the thinnest globally.

This paradox between rising passenger numbers and negligible profitability was a central focus at the recent African media roundtable held at Nairobi’s Sarit Expo Centre, themed “Resilient African Aviation: Partnerships, Empowerment, Profitability.”

Africa’s demographic and economic trends suggest a promising future for air travel. The continent’s population is projected to reach 1.58 billion by 2026, with a median age of 19 and an average annual economic growth rate of 4.3%.

Yet, air travel penetration remains strikingly low at only 7%, one of the lowest rates worldwide. The African Airlines Association (AFRAA), which represents 50 member airlines responsible for over 85% of Africa’s international air traffic, has called for urgent, coordinated efforts from governments, regional bodies, and financial institutions to turn this growing demand into sustainable profitability.

African carriers face numerous financial and operational pressures that severely limit their profitability. Taxes, fees, and charges make up 35% to 40% of ticket prices, nearly double the global average of 20%.

Additionally, governments across the continent are withholding approximately $774 million in blocked airline funds as of March 2026, the largest regional share of trapped funds worldwide.

This issue is part of a broader $1 billion blocked-funds crisis affecting Africa and the Middle East, driven by foreign-exchange shortages and administrative hurdles. Ethiopian Airlines, Africa’s largest carrier, alone has $90 million trapped in overseas markets.

The African aviation sector is further hindered by structural inequities and geopolitical challenges. The continent receives only 2% of global aircraft deliveries, compared with Asia-Pacific’s 35.6% and Europe’s 24%.

Meanwhile, Africa requires an estimated $25 to $30 billion in airport and air navigation infrastructure investment over the next decade to accommodate increasing passenger volumes.

Operational costs are also rising due to conflict-related airspace closures across the Sahel region. A no-fly corridor extending about 4,000 kilometres over Niger, Mali, Sudan, and Libya forces airlines to reroute, increasing fuel consumption and overall operating expenses.

AFRAA Secretary General Abderahmane Berthe highlighted that while African aviation holds significant potential to drive regional economic growth, systemic barriers continue to impede progress.

He stated, “African aviation is ready to deliver on its promise to connect our economies, move our trade, and carry the growth that this continent’s youth and enterprise are already generating. But readiness is not the same as capacity. Our airlines are being asked to carry that promise on some of the thinnest margins in the world, while absorbing costs, blocked funds, and shocks that carriers elsewhere simply do not face.”

Berthe urged governments to release blocked funds, reduce the tax burden on air travel, and implement existing liberalisation policies.

He also acknowledged the critical role of partners such as Afreximbank, the African Development Bank, and the African Union Commission, whose involvement in financing and infrastructure development is vital for the sector’s future.

As African airlines confront these multifaceted challenges, industry leaders warn that without decisive and coordinated action, the continent risks failing to fully realise the benefits of its rapidly expanding passenger market.

Wole Shadare