Africa represents 2.2pc of global aviation but holds greater potential, IATA Congress has been told. The continent faces high fuel costs, taxes and airport charges. Growth of 10pc is forecast for this year. Profitability will decline due to fuel prices with net profit per passenger at one US dollar. Open skies agreements would support expansion.
Speaking at the IATA 2026 congress in Rio de Janeiro, Willie Walsh said Africa has significant long-term opportunity. The region has natural resources for sustainable fuel development. Renewable energy costs could be low. Implementation of open skies has faced delays despite acceptance. Challenges remain but growth prospects are positive.
The industry expects profitability to continue at lower levels. Average margins will fall this year. Infrastructure and regulatory barriers limit potential. Sustainable fuel production could position Africa strongly. Coordination across countries is needed to realise opportunities.
Africa aviation growth reaches 10pc this year despite cost pressures. Profit per passenger remains low at one dollar. Open skies would accelerate development.
The continent holds resources for sustainable aviation fuel. High costs in fuel, taxes and charges constrain operations. Long-term potential exceeds current 2.2pc share.
Governments must implement agreed changes to support expansion. Profitability faces pressure from fuel prices. Resilience supports continued operations.
Willie Walsh shared: “The African industry faces many challenges. It’s one of the highest cost parts of the operating environThe African industry faces many challenges. It’s one of the highest cost parts of the operating environment. They have high fuel costs, high taxes, high airport charges. They’re currently representing about 2.2pc of global aviation. I think the opportunity there is significantly greater than that.
We are forecasting Africa to grow by 10pc this year. It’s had very healthy growth in the first quarter of the year, up to actually the end of April has actually grown at 10pc. And the outlook for growth for the rest of the year remains quite positive.
The profitability obviously is going to be impacted as a result of the higher fuel costs and we’re estimating that it will still be profitable but the net margin will decline and the net profitability will decline and it’ll work out at about an average net profit per passenger of about $1 US, which is wafer thin.
But I think there’s been a lot of debate around what does Africa need to do to fully exploit the potential that exists there. And we’ve always said that an open skies agreement similar to what has existed in other parts of the world would facilitate very significant expansion in Africa if it were possible. And that debate has gone on for many years. It’s been acknowledged and accepted by many of the players but there’s been a failure actually to implement the changes that could facilitate even greater growth.
The long-term opportunity for Africa as a player on the global aviation market is quite significant and quite healthy. They have a huge opportunity to develop a sustainable fuel market. They’ve got all of the natural resources. Even when it comes to synthetic fuel, the cost of renewable energy in Africa could be really small given the ability for renewable energy to be created there as well.
So I remain quite optimistic about the future. But like all airlines in all parts of the world, this year is going to be a challenging year. And while we still expect it to be profitable, the level of profitability will be slightly down on where it was last year.
