The International Air Transport Association (IATA) has warned that African airlines are facing significant financial pressures due to rising taxes, fees, and fuel costs. According to Kamel El-Awady, IATA's Regional Vice President for Africa and the Middle East, these pressures are limiting the sector's ability to increase capacity, invest, and connect African markets. El-Awady made these remarks at the African Aviation Conference held in Kenya.
El-Awady emphasized that the operating costs for airlines on the continent remain significantly higher than the global average. Unit operating costs in Africa are nearly double the global average, while taxes and fees on the aviation sector are at least 15 percent higher than the global average. Fuel is one of the biggest sources of pressure on African airlines, with prices about 17 percent higher than the global average.
The complexity of taxes and fees, and the difficulty of obtaining foreign currency in several markets, add to the burden on African airlines. El-Awady stressed that governments face a strategic choice in how they treat the aviation sector. They can view it as a driver of economic development, given its role in connecting markets and supporting trade, tourism, and investment, rather than merely as a source of revenue.
El-Awady pointed out that many African markets remain fragmented, limiting airlines' ability to achieve economies of scale. This raises operating costs and constrains network expansion and the addition of flights. However, he noted improvements in several indicators since the launch of the "Focus on Africa" initiative in 2023. The number of African airlines participating in the IOSA program rose to 47.
Additionally, funds held by airlines facing difficulties in repatriating their revenues fell from a peak of $1.5 billion in July 2023 to $624 million in July 2026. Despite this progress, El-Awady warned of the continued problem of frozen funds for airlines operating in some African countries. Delays in transferring airline revenues to their home countries limit their ability to invest in increasing capacity.
El-Awady also highlighted the need for better coordination on fees for Advance Passenger Information (API) and Passenger Name Record (PNR) systems. Some countries impose high charges for these systems, including $45 per flight in Tanzania, $30 in Gabon, and $50 in Equatorial Guinea. He called for the implementation of these systems in line with standards set by the International Civil Aviation Organization (ICAO).
Regarding infrastructure, El-Awady stressed the importance of linking airport spending to actual market needs, with prior consultation with airlines. He mentioned major airport development projects across the continent and emphasized that the growth of African air transport depends on creating a competitive operating environment that lets airlines add capacity and cut costs.
Key points
- African airlines face high operating costs, with unit costs nearly double the global average.
- Taxes and fees on the aviation sector in Africa are at least 15 percent higher than the global average.
- Frozen funds for airlines operating in some African countries limit their ability to invest in increasing capacity.
