IATA laments high airlines’ operating costs in Africa, warns they are not sustainable
By Jeph Ajobaju, Chief Copy Editor
High operating costs of airlines in Africa are under the scrutiny of the International Air Transport Association (IATA), whose Regional Vice President Kamil Al-Awadhi has expressed concern about the sustainability of operators in the long run.
Al-Awadhi disclosed his views in a document presented at the 81st IATA Annual General Meeting going on in New Delhi, noting that African airlines spend additional 17 per cent on fueling, 12-15 per cent (taxes and fees), 10 per cent (more on air navigation charges), 6-10 per cent of revenue (maintenance, insurance, and cost of capital).
“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,” the document explained.
“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.
Al-Awadhi said Africa’s air transport potential is held back by various barriers, stressing that the continent accounts for just 2-3 per cent of global air traffic, despite a growing population and economy of 175 million air passengers projected in 2024.
In his view, Africa is also challenged by weak regional links, as 80 per cent of flights emanating from the continent are international, while only 20 per cent serve intra-African routes, limiting regional integration and economic development.
“Also, over 75 per cent of international passengers fly on non-African carriers, showing the urgent need to strengthen local airline competitiveness.”
Al-Awadhi also disclosed that at least $1.28 billion airline funds are still trapped globally, with 85 per cent blocked in Africa and the Middle East (AME) as of April 2025.
IATA data shows that $1.28 billion was down from $1.7 billion in October 2024 as 29 AME countries blocked funds with five of them top debtors. As of October 2024, AME countries held $1.1 billion airlines’ funds.
The document listed African countries withholding airlines’ funds to include Mozambique ($205 million), Cameroon ($191 million), Central African Republic ($178 million), Chad ($142 million), and Republic of Congo ($84 million), per The Guardian (Nigeria).
Nigeria cleared its own backlog in 2024.
Aero Contractors Managing Director Ado Sanusi corroborated the report, saying the extreme burden of taxation is responsible for the woes of airlines in Africa, particularly in Nigeria.
Said he: “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.
“Many things add to the cost of operation in this part of the world. If we really want to be serious and want to achieve the development that we are all pursuing, there must be a deliberate attempt to address the issue of taxation for airlines.”
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