The International Air Transport Association (IATA) has raised serious concern over the high cost of airline operations across Africa, warning that these expenses are significantly above the global average and pose a threat to the growth and competitiveness of the continent’s aviation sector.
This was made known by IATA’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi, in a document presented during the ongoing 81st IATA Annual General Meeting (AGM) in New Delhi, India. The report, which was obtained by journalists, revealed that African airlines are burdened by several cost factors, including elevated fuel prices, taxes, navigation charges, and maintenance costs.
According to the document, jet fuel costs for African airlines are about 17 per cent higher than the global average. Fuel currently accounts for 40 per cent of airlines’ operational expenses in Africa, compared to 25 per cent globally. In addition, taxes, fees, and charges are 12 to 15 per cent more expensive on the continent. Air navigation charges are also 10 per cent higher, while maintenance, insurance, and cost of capital consume an extra 6 to 10 per cent of airline revenues.
The IATA report noted, “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.”
Despite the growing population and a projected air traffic figure of 175 million passengers in 2024, Africa contributes only about 2 to 3 per cent to global air traffic. This low participation, IATA says, is partly due to weak regional connections. The report pointed out that 80 per cent of flights from African countries are international, while only 20 per cent serve routes within Africa. This lack of intra-African connectivity is limiting regional integration and slowing down economic development.
Another challenge highlighted in the report is the dominance of foreign airlines in African airspace. More than 75 per cent of international passengers flying to or from African countries are carried by non-African airlines. IATA stressed the need to strengthen local airline capacity and competitiveness to reverse this trend.
The financial difficulties facing African carriers are further compounded by blocked funds. As of April 2025, IATA reported that $1.28 billion of airline funds were trapped globally, with 85 per cent of that amount stuck in Africa and the Middle East. Although this figure has dropped from $1.7 billion in October 2024, many countries in Africa remain among the top culprits.
The document listed countries with major blocked airline funds, including Mozambique with $205 million, Algeria with $178 million, Lebanon with $142 million, Angola with $84 million, and several countries in the Central African Franc (XAF) zone — Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon — with a combined $191 million.
Notably, Nigeria, which previously ranked high among countries with blocked airline funds, has cleared its backlog as of 2024 and is no longer on the IATA debt list.
Reacting to the IATA findings, Managing Director of Aero Contractors, Captain Ado Sanusi, confirmed that the high level of taxation in Africa, especially in Nigeria, is a major factor contributing to the difficulties facing local airlines. He stressed that unless the government addresses the issue of multiple taxes, efforts to develop the aviation industry will remain ineffective.
“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,” he said.
Sanusi added that several hidden costs, including charges from various regulatory agencies and airport authorities, make airline operations in Nigeria more expensive than in many other regions.
“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,” he concluded.
IATA’s warning serves as a reminder that, despite Africa’s potential in aviation, substantial reforms are needed to reduce costs, promote intra-African travel, support local carriers, and unlock the full economic benefits of a thriving air transport sector on the continent.
