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African Airlines Post $200 Million Net Profit in 2024

African Airlines Post $200 Million Net Profit in 2024
Monday, 02 June 2025 16:39

• First net profit since COVID-19 reflects sector recovery
• Airlines face high costs, weak margins, and low passenger load factor
• Growth outlook strong with passenger numbers projected to more than double by 2043

African skies are not completely clear, but after years of turbulence, the continent’s airlines appear to have found stable ground. Yet there remain challenges to consolidate. African airlines crossed a symbolic threshold in 2024: for the first time since COVID-19, they recorded a net profit of $200 million. While modest on a global scale, this marks progress for a sector that has struggled in the region for a long time.

According to the International Air Transport Association’s (IATA) 2025 annual report, these profit figures place Africa at the bottom of the global financial performance ranking. Only Latin America reflects a comparable performance, with profits of $1.3 billion. North American companies raked in $11.5 billion in profits, followed by European companies with $9.6 billion, while the Middle East continues to strengthen its position, with profits of $6.1 billion and the highest net profit margin globally at 8.9%.

In 2024, the global aviation sector recorded a net profit of $32.4 billion, representing a net profit margin of 3.4%. For 2025, IATA forecasts a moderate increase to $36 billion, raising the margin to 3.7%. Despite being modest in comparison to the industry’s global revenues, these figures indicate a return to equilibrium following the dark years of the pandemic. Africa accounts for a mere 0.6% of the expected global net profit for 2024.

Another telling figure of this gap: African airlines generate just over one dollar of profit per passenger transported, as opposed to over $27 in the Middle East and a global average of $7.2, illustrating the profitability differences between regions.

However, if Africa starts from a low point, it is making stable strides. African companies have modestly contributed to the industry’s net result but their performance is steadily improving, the report pointed out. IATA even envisages sustainable growth momentum in the region, assuming certain structural weaknesses are progressively addressed.

Among these challenges, the passenger load factor (PLF) remains one of the lowest globally at 75% in 2024. Even though this figure has seen significant growth over the past decade (from 67.4% in 2014), it still reflects under-utilization of aircraft, often due to fragmented routes, uneven competition, and disparate business strategies, as reported by the authors of the study.

In parallel, African airlines grapple with high operational costs, exacerbated by aging fleets and reliance on international aircraft leasing. The global average age of aircraft is 14.8 years, a record high, and the situation is often more severe in many African countries, leading to higher-than-average maintenance costs. Operating an airline in Africa is simply more expensive, according to the organization that represents 80% of the world’s airlines. Fuel is 17% more expensive on average than in other parts of the world, taxes and fees account for up to 15% of additional costs, navigation fees exceed the global norm by 10%, and maintenance, insurance, and financing are 6% to 10% higher than other markets. The result is an economic model under strain, with skyrocketing ticket prices, which hinder the affordability of air travel for passengers.

Despite these hurdles, positive signs are emerging. The growth of passenger traffic, estimated at +7.2% over the year, and over 9% in the first four months of 2025, remains strong. Several infrastructure projects in Morocco, Senegal, Egypt, and East Africa demonstrate how countries increasingly view aviation as a catalyst for economic development and regional integration. The prospects seem promising as well. According to IATA forecasts, the number of African passengers could reach 345 million by 2043, up from approximately 160 million today, implying an average annual growth rate of 3.7%.

To maintain this trajectory, IATA is advocating for an improvement in the regulatory environment, better cooperation among African states, and policies that are more favorable to investment. “Africa cannot remain on the sidelines of the new global dynamics of air transport,” warns the organization, underlining the need not to leave “any country behind,” particularly in debates about sustainability and alternative fuels. On this last point, the continent is barely present in the production and use of sustainable aviation fuels (SAFs), which are still concentrated in the Northern countries, noted Marie Owens Thomsen, Chief Economist and First Vice President for Sustainable Development at IATA.

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