Geopolitical risks make collaboration essential for survival of African airlines

Of the $41bn in global profit forecast for 2026, African carriers will generate just $200m, conference told

Cabin crew disembark an Ethiopia Airlines passenger planein Addis Ababa, Ethiopia, in this file photo. Of the $41bn in global profit forecast for 2026, African carriers will generate just $200m, conference told. Picture: REUTERS (Tiksa Negeri)

African airlines can only hope to become profitable if they operate as an integrated and co-ordinated sector to be competitive in an industry beset by global uncertainty, geopolitical risks and infrastructure constraints.

This was the common refrain at a conference held in Johannesburg on Monday against the backdrop of data showing that the continent’s airlines are forecast to generate a collective net profit of just $200m in 2026.

This represents a margin of $1.30 per passenger compared with a global average of $7.90, despite the region boasting the world’s fastest-growing aviation market.

“Our task is to implement actions to ensure that the growth translates into genuine profitability, deep connectivity, and sustainable opportunity for African aviation,” African Airlines Association secretary-general Abdérahmane Berthé told more than 400 delegates.

Despite its large population, Africa remains a marginal player in global aviation, accounting for just more than 2%, with industry experts citing fragmented markets and limited access to modern aircraft as hindrances to growth.

The continent has also not been spared from soaring jet fuel costs due to global supply constraints linked to the US-Iran war.

“Collaboration is no longer optional for African aviation, it is essential for survival, sustainability and long-term competitiveness,” SAA group CEO Matshela Seshibe said at the conference.

The International Air Transport Association (Iata) projects that Africa’s air travel will grow by 6% in 2026, outpacing the global forecast of 4.9%. But of the $41bn in global net profit forecast for the year, a 3.9% margin, African carriers are expected to generate just $200m profit, representing a 1% margin — the lowest of all regions.

A disciplined fleet strategy and sound financing preparation are some of the key levers for African airlines to convert the continent’s growth potential into sustainable profitability, the conference heard.

A recent meeting of transport ministers highlighted the strategic role of aviation in driving Africa’s integration, trade, tourism, industrialisation and economic development.

The ministers supported the development of a continental framework to harmonise taxes, charges and fees to address the high-cost operating environment that continues to constrain airline sustainability and limit passenger growth.

The cost of doing aviation business in Africa is high, data shows, with an element of this being the taxes and charges by governments and infrastructure providers. The burden of this is about 15% higher on the continent than the global average.

Fuel prices are 17% higher, air navigation charges are about 10% while maintenance, insurance and capital costs are 6%-10% above the global average. There is also limited connectivity, with only 19% of intra-African routes having direct flights.

The reality is that no African airline can succeed in isolation, South African transport minister Barbara Creecy said, telling delegates: “An integrated, co-operative and co-ordinated aviation sector is essential if we are to overcome fragmentation and compete effectively on the global stage.”

Aviation safety and security are also fundamental to the sustainability and credibility of the continent’s systems, Creecy said.

“In an increasingly complex global environment, we must strengthen co-operation, intelligence sharing, regulatory co-ordination, and the adoption of advanced technologies to safeguard our skies, our passengers and our infrastructure,” she said.

“Recent aviation security incidents at key ports of entry, including OR Tambo International Airport, remind us that criminal networks are becoming increasingly sophisticated in exploiting international air routes. These challenges demand more than compliance. They require intelligence-led, adaptive and co-operative security systems across the continent.”

According to Iata, Africa has made significant progress in aviation safety, with the accident rate falling from 12.13 to 7.86 per million sectors in 2024-25, but remains well above the global average of 1.32 and is the highest among all regions.

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