African Airlines Face 0.2% Profit Margin Despite Growth

African passenger traffic is expected to reach 137.3 million by 2026, a 21.5% increase from 2025. However, African airlines are projected to earn a profit margin of only 0.2%, one of the lowest globally, as capacity growth exceeds demand.

This information was presented at the African media roundtable at the Sarit Expo Centre in Nairobi, organized by AFRAA, which represents 50 member airlines carrying over 85% of international traffic among African operators. The airlines face operational bottlenecks, with taxes and fees accounting for 35-40% of ticket prices, compared to a global average of about 20%.

Additionally, as of March 2026, approximately $774 million in airline funds are blocked by governments. Africa receives only 2% of global aircraft deliveries, necessitating an estimated $25 billion to $30 billion for airport and air navigation infrastructure over the next decade.

Abderahmane Berthe, AFRAA Secretary General, urged governments to release owed funds and reduce the tax burden on air travel.