The International Air Transport Association (IATA) has identified Africa as the most expensive region in the world for airline operations, citing high jet fuel prices, excessive taxes and charges, aging fleets, and structural inefficiencies that continue to weigh heavily on carriers across the continent.
According to IATA, African airlines record unit costs of about $140 per available tonne-kilometre, nearly double the global average of roughly $70. Jet fuel remains a major cost driver, priced on average 17 per cent higher in Africa than elsewhere due to limited local refining capacity, inefficient supply chains, and heavy reliance on imports. As a result, fuel can account for as much as 40 per cent of operating costs for African carriers, compared with about 25 per cent globally.
Beyond fuel, taxes and fees significantly inflate operating expenses. IATA estimates that these charges make up between 12 and 15 per cent of total airline costs on the continent, with statutory levies in some countries adding between $60 and $80 to a $100 base fare. Airport and air navigation charges are also higher, exceeding those in other regions by about 10 to 12 per cent, further limiting the affordability of air travel for many Africans.
Speaking at the IATA Global Media Day, the association’s Regional Vice President for Africa and the Middle East, Kamil Alawadhi, said African airlines operate on the thinnest margins globally, with an average net profit margin of just 1.3 per cent. On a per-passenger basis, airlines in Africa earn about $1.20, compared with a global average of $7.70, underscoring the fragile financial position of the sector.
Operational costs are further compounded by aging fleets, with aircraft in Africa averaging about five years older than the global norm. Older aircraft require more maintenance and consume more fuel, increasing both direct and indirect costs. The shortage of local Maintenance, Repair and Overhaul facilities also forces airlines to source parts and technical services from overseas, often at significantly higher prices.
Financial pressures are intensified by the widespread problem of blocked funds. As of late 2025, Africa accounts for about 79 per cent of all blocked airline funds worldwide, amounting to approximately $954 million. Restrictions on the repatriation of revenues prevent airlines from accessing hard currency needed to pay for aircraft leases, fuel, insurance, and other dollar-denominated obligations, creating severe cash-flow challenges and, in some cases, leading to service reductions or suspensions.
Market fragmentation and protectionist policies also limit efficiency and growth. Only about 19 per cent of intra-African routes are served by direct flights, forcing passengers to transit through Europe or the Middle East to travel between African cities. Most African airlines remain small, with limited fleets and networks, making it difficult to achieve the economies of scale enjoyed by larger global carriers.
Despite these challenges, IATA projects that air traffic in Africa will grow by about 6.0 per cent in 2026, faster than the global average. To address the underlying structural issues, airlines and industry bodies are forming task forces to improve safety, efficiency, and cost management. IATA has also announced plans to unveil new safety and efficiency initiatives at its Focus Africa event scheduled for April 2026.
While growth prospects remain strong, IATA cautions that without coordinated reforms to reduce costs, liberalise markets, and address infrastructure and regulatory bottlenecks, Africa’s aviation sector will continue to struggle with high operating expenses and minimal profitability.
