The International Air Transport Association (IATA) has expressed concern over the rising operational costs faced by airlines in Africa. The issue was discussed at the 81st IATA Annual General Meeting in New Delhi, India.
IATA Regional Vice President Kamil Al-Awadhi highlighted the financial strain on African airlines, stating that they spend significantly more than the global average on key expenses.
“It’s expensive to do business in Africa. African airlines face unique cost challenges, particularly high operational costs, which are significantly higher than the global average,” he said.
According to IATA data:
- Fuel prices are 17% higher than the global average, making up 40% of operating costs in Africa compared to 25% globally.
- Taxes, fees, and charges are 12-15% higher than in other regions.
- Air navigation charges are 10% higher in Africa.
- Maintenance, insurance, and cost of capital are 6-10% more expensive.
Despite Africa’s growing population and an estimated 175 million air passengers in 2024, the continent accounts for only 2-3% of global air traffic.
Limited Regional Connectivity and Trapped Airline Funds
IATA noted that 80% of flights from Africa are international, while only 20% serve intra-African routes, limiting regional integration and economic growth.
“Over 75% of international passengers fly on non-African carriers, showing the urgent need to strengthen local airline competitiveness,” Al-Awadhi stated.
Additionally, $1.28 billion in airline funds remain trapped globally, with 85% blocked in Africa and the Middle East as of April 2025.
The top five debtor countries include:
- Mozambique: $205 million
- XAF Zone (Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, Gabon): $191 million
- Algeria: $178 million
- Lebanon: $142 million
- Angola: $84 million
Nigeria is no longer on the list of indebted nations, having cleared its backlog in 2024.
Industry Experts Call for Tax Reforms
Managing Director of Aero Contractors, Capt Ado Sanusi, agreed with the IATA report, stating that high taxation is a major challenge for African airlines, particularly in Nigeria.
“The taxes are high, especially in Nigeria, compared to other parts of the world. We cannot tax or use the airlines to fund the parastatals, or as a source of revenue to federal coffers. It can’t just work,” he said.
Sanusi urged authorities to reduce multiple taxation, warning that failure to do so would hinder efforts to develop the industry.
Rate, Like 👍, Comment, share this article and Follow us on our social media handles.
WhatsApp Channel
Telegram Channel
