Africa is expected to outpace global traffic growth next year but airlines on the continent continue to operate under some of the worlds most challenging conditions, leaving them with the smallest share of global industry profits and extremely thin margins.
Demand for air travel in Africa is rising faster than in many other parts of the world, but profitability is not keeping pace. African airlines are capturing only a fraction of aviations economic value. Addressing the barriers that constrain growth is essential to ensure the regions traffic expansion also delivers financial strength, said Kamil Al-Awadhi , IATA Regional VP of Africa and Middle East, during a recent IATA Africa media roundtable.
Challenging operating environmentLow GDP per capita across much of the continent limits discretionary spending, making air travel highly price sensitive and restricting its growth potential, said Al-Awadhi.
