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The African airline industry is expected to earn an average net profit of just $1.30 per passenger in 2026, the International Air Transport Association (IATA) has said.
IATA, in its latest outlook released on Tuesday, warned that Africa will operate with “thin margins and limited resilience” despite growing traffic that is faster than the global average.”
It stated, “Low GDP per capita across much of the continent limits discretionary spending, making air travel highly price sensitive and restricting its growth potential.”
The group noted that “demand is further constrained by visa restrictions, restrictive bilateral agreements, and high passenger charges.”
African carriers face the highest unit costs globally, with average cost per ATK near 140 US cents, almost double the industry average, IATA added.
“Among the many factors contributing to the high cost of operations in Africa are high fuel costs, fragmented markets, older fleets, and average corporate tax rates of 28% (the highest among all regions).
“Until these constraints ease, Africa’s airline industry will operate with thin margins and limited resilience, even as traffic expands faster than the global average.”
Meanwhile, Middle Eastern airlines are projected to earn $28.60 per passenger in 2026, followed by Europe at $10.90, North America at $9.80, and the Asia-Pacific region at $3.20.
IATA also announced that International airlines expect to transport a record 5.2 billion passengers in 2026, despite global headwinds affecting the sector.
Carriers also expect higher profits than previously forecast for 2025, and predict earnings at a comparable level next year, according to IATA.
It stated that 2025 profits are projected to reach $39.5 billion, up from the $36 billion they predicted at the body’s annual general meeting in June.
“Airlines are expected to generate a 3.9% net margin and a $41 billion profit in 2026. That’s extremely welcome news considering the headwinds that the industry faces—rising costs from bottlenecks in the aerospace supply chain, geopolitical conflict, sluggish global trade, and growing regulatory burdens among them,” Willie Walsh, IATA’s Director General, was quoted in the report.
“Airlines have successfully built shock-absorbing resilience into their businesses that is delivering stable profitability,”
