IATAs Global Outlook for Air Transport revealed that while profits were on the rise, African airlines would continue to face exceptionally high operational costs.
During the associations 81 st Annual General Meeting, Kamil Al-Awadhi , Regional Manager for IATA, explained that African airlines faced unique cost challenges that far exceeded global averages, including:
- In 2024, jet fuel prices in Africa were 17 higher than the global average, accounting for 40 of airlines operating costs, compared with 25 globally.
- Taxes, fees and charges were 12-15 higher.
- Air navigation charges were 10 higher.
- Maintenance, insurance, and cost of capital was 6-10 more expensive.
In 2024, global aviations nett profit was 32,4 billion R579,1 billion, marking an increase on 2023s nett profit of 27,4 billion R489,7 billion. IATA forecasts a nett profit of 36 billion R643,5 billion in 2025. African aviation also experienced a nett profit in 2024, which IATA predicts will remain stable in 2025.
The global nett profit margin was 3,4, showing an improvement on the 3 achieved in 2023. IATA expects the global nett profit margin to grow to 3,7 in 2025.
In 2024, Africas nett profit margin was 1, compared with 0,4 in 2023. It is forecast to grow to 1.1 in 2025.