IATA Reveals 6 Factors Limiting African Airlines Operations

The International Air Transport Association (IATA) has revealed about 6 factors limiting airline operations in the African continent.

The global air transport association has just made the revelation through the IATA Regional Vice President Kamil Al-Awadhi in New Delhi, India.

Al-Awadhi spoke via a document presented at the ongoing 81st IATA Annual General Meeting in India.

According to him, the factors limiting African airlines operations centre on the following 6 factors:

1. The -75 per cent of international passengers fly on non-African carriers.
2. High operational costs, significantly higher than the global average.
3. Africa accounting for just 2–3 per cent of global air traffic, despite a growing population and economy of 175m passengers projected in 2024
4. Weak regional links, with despite over 80 per cent of flights emanating from the continent being international, while only 20 per cent serve intra-African routes,
5. limiting regional integration and
6. economic development

The document simply declared that, “It’s expensive to do business in Africa”, even as cariers within the region, face unique cost challenges, particularly high operational costs, which are significantly higher than the global average.

A Breakdown of the costs, according to him are as follows:

• 17 per cent more on fueling,
• 12-15 per cent on taxes and fees,
• 10 per cent more on air navigation charges,
• 6-10 per cent of their revenues on maintenance, insurance, and cost of capital.

“A few examples like fuel prices, 17 per cent higher than the global average, accounting for 40 per cent of operating costs in Africa, compared to 25 per cent globally (2024 data).

“For taxes, fees & charges: 12-15 per cent higher than in other regions. Also, Air Navigation Charges are 10 per cent higher in Africa, while maintenance, insurance, and cost of capital are 6-10 per cent more expensive.”

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According to Al-Awadh, the African continent’s weak regional links, has accounted to only 20 % of the 80 per cent of international flights emanating from the continent serving intra-African routes.

The result is that regional integration is being limited he stated, adding:

“Also, over 75 per cent of international passengers fly on non-African carriers, showing the urgent need to strengthen local airline competitiveness,” he added, informing that as at last month, that much as $1.28bn of airline funds were still trapped globally, with 85 per cent of such funds blocked in Africa and Middle East countries.