African airlines are expected to maintain a nett profit of $100 million (R1,8 billion) for a second year in a row, translating into a profit per passenger of only $0,90 (R16,63), far below the global average of $6,14 (R113) per passenger.
“Africa’s airlines are making a collective profit. That is good news. But it is razor-thin and well below the global benchmark. And there are wide variations across the continent where many individual airlines still struggle with losses," explained Kamil Alawadhi, IATA’s Regional Vice President for Africa and the Middle East.
According to IATA, the near doubling of the profit per passenger of 2023, indicates improved operational efficiency and increased demand.
Africa's load factor is projected to reach 61,9%, reflecting a 2,1ppt increase on African airlines' breakeven load factor.
"The demand to travel is there. To meet it, the African airline sector needs to overcome many challenges, not least of which are infrastructure deficiencies, high costs, onerous taxation and the failure to broadly implement a continent-wide multilateral traffic rights regime,” said Alawadhi.
