Africa: When It Comes to Aviation Industry, Africa is Area of Potential, Rather Than Performance, Says IATA

Africa: When It Comes to Aviation Industry, Africa is Area of Potential, Rather Than Performance, Says IATA


Geneva — For the international aviation industry, Africa remains an area of potential rather than performance, the International Air Transport Association said this week in open days for the media at IATA’s executive office in Switzerland.

“While deliveries of new aircraft began to pick up in late 2025 and production is expected to accelerate in 2026, demand is forecast to outstrip the availability of aircraft and engines,” Willie Walsh, director general of IATA, told journalists giving a global picture during the Dec 9-10 meeting.

He said, “While Africa is expected to outpace global traffic growth next year, the region continues to face some of the world’s toughest operating conditions.”

This results in the smallest share of global industry profit and extremely thin margins.”


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At a press conference, Walsh said, “One of the cheapest areas of renewable energy will be Africa. Some of the lowest cost renewable energy can be produced in Africa”, which he noted has “fantastic access to solar energy”.

“or Africa, we see a real opportunity for the potential to produce low-cost synthetic fuels,” noting it is a long-term issue.

Conversely, the highest cost for renewable energy is in Europe, whereas Europe is way out in front of mandating the use of electronic Sustainable Aviation Fuel.

–  DIGITAL PASSPORTS

When it comes to the use of digital passports, Walsh sees it as another great opportunity for Africa, “If you can get a global standard for this”, and if it can embrace a global standard”, there is great potential rather than each country developing its own system.

The IATA chief said that the opportunity to homogenise the system is fantastic as IT can provide a much better system for both consumers and movernments.

It is also much cheaper to implement an IT infrastructure that meets global standards.

Kamil Al-Awadhi, IATA regional vice president, Africa and Middle East, echoed Walsh’s thoughts.

“Africa’s aviation potential is immense. With the third-fastest growth rate in the world over the next two decades, the continent could serve more than 400 million passengers annually by 2044.

He said there are encouraging steps—such as improved visa openness and the adoption of e-visas—that support greater mobility and integration.

“But turning potential into performance requires action. Governments must treat aviation as a catalyst for development, not a source of revenue,” he cautioned.

“With the right policy support, aviation can be a powerful driver of economic transformation across Africa,” said Al-Awadhi.

IATA forecasts global air travel growth of 4.9 percent in 2026, slightly below the 5.2 percent expected in 2025. Africa is projected to exceed the global average with 6.0 percent growth in 2026.

“Despite above-average demand, the financial outlook remains challenging. Of the $41 billion in global net profit forecast for 2026 (3.9 percent margin), Al-Awadhi noted.

–         LOWEST MARGINS

African carriers are expected to generate just $200 million in combined profits, representing a 1.3% margin— the lowest of all regions. This equates to $1.3 in profit per passenger, compared to a global average of $7.9.

“Demand for air travel in Africa is rising faster than in many other parts of the world, but profitability is not keeping pace.

“With margins of just 1.3 percent, African airlines are capturing only a fraction of aviation’s economic value. Addressing the barriers that constrain growth is essential to ensure the region’s traffic expansion also delivers financial strength,” said Al-Awadhi.

He said that 44 per cent of African countries offer e-visas, but these are not standardised.