African Airlines have been plagued by many challenges over the years. From small and aging fleet to inability to attract capital, loss of qualified personnel, and inability to sustain services, amongst others. Since COVID 19, the sector has had to grapple with additional challenges including delays in aircraft deliveries, extended AOGs due to supply chain issues. Add to the now perennial challenge of forex fluctuation, the survival rate of African airlines dwindled to just a few years.
In Nigeria, which is acclaimed to have the most vibrant domestic airline sector on the continent, these challenges have been highlighted over the years with the sector having some of the highest attrition rate of any industry. South Africa, which also boasts a sizeable number of private domestic operators, has also not been spared in the recent past.
On the international segment, the industry is equally littered with dead airlines: Nigeria Airways, Ghana Airways, Air Afrique, Air Gabon, amongst others. Some of the African airlines have died, resurrected in different brand names only to die again.
The Single African Air Transport Market (SAATM) initiative inspired by the need to liberalize air transport in Africa with the promise of reduction of prices and improved connectivity has not been wholly embraced across the continent.
Meanwhile the continent continues its reputation for being the most taxed region. In its latest report on taxation and charges, the African Airlines Association (AFRAA) noted that charges on airfares have made Africa the most expensive of all continents. In a report in June 2025, the International Air Transport Association, IATA noted that aviation fuel prices were highest in Africa, in fact achieving a not too enviable level of 17% higher than global average. In the same vein IATA notes that “taxes and charges on air travel in Africa are 15% higher than the global average” Speaking in Lagos, in November during a national Conference organized by the Federal Airports Authority of Nigeria, the Chairman of United Nigeria Airlines who also serves as the Spokesperson for the umbrella body of airlines in Nigeria, the Airline Operators of Nigeria (AON), Professor Charles Obiora noted that at 31% interest rate for borrowing funds, the airline industry in Nigeria was not sustainable.
In spite of the challenges, African aviation industry is primed to be the fastest growing by 2035 according to various industry forecasts. Many see great opportunities in the market.
Government Policy Must Recognise Aviation As an Economic Enabler
For the potentials of the industry to fully be actualized, industry experts have called on African governments to see air transport as an economic enabler. According to Mr. Somas Appavou, IATA’s Regional Director External Affairs, Africa, “Africa’s aviation sector is a vital economic driver, contributing USD 75 billion to GDP and supporting 8.1 million jobs. The continent’s aviation market is projected to grow at 4.1% over the next 20 years, doubling by 2044. More important than the growth of the sector is the impact that a successful aviation industry has on social and economic development. As governments prioritize how to deliver their agendas with limited resources it is critical to recognize that supporting aviation underpins jobs, trade, and tourism”.
Over the years, governments across the continent have treated aviation as an elite sector, to be taxed to support other sectors. The few exemptions are in Ethiopia, where the national carrier continues to be an engine of growth for the country; Togo, which has enabled and supported Asky, which is easily the leading carrier in the West & Central Africa region; and Rwanda which is steadily investing in aviation to leverage the industry to power its economy. A new entrant in this club appears to be Angola. It also does appear that more awareness exists only for national carriers as drivers of tourism, etc. but sadly the general understanding of the role of the entire aviation ecosystem in promoting growth has been missed.
Even more surprising is the policy somersaults, or the resemblance of it in Africa. In late 2024, governments of West Africa agreed to reduce taxes and charges on aviation by 25%, starting January 1, 2026. In Nigeria, for instance, on the same date, value added tax (VAT) is billed for reintroduction on airline tickets. In Tanzania, government has announced USD45 tax on aviation. In Kenya, government has also introduced USD45 tax on air tickets.
How African Governments Can Assist Their Airlines
For African airlines to survive, a deliberate government policy to support the sector needs to be in place. For one, financing is a key challenge for the sector. There is now a call for a specialized aviation bank; if that can be achieved the better. In Nigeria, for instance, the Honourable Minister of Aviation, Barrister Festus Keyamo is driving the establishment of a leasing company. As brilliant as it is, the governance of such entity is equally very important. Access to financing is a critical area where African airlines need vital support.
Reduction of taxes and charges on air transport will help reduce prices of air ticket and drive more people to fly thereby improving the economic sustainability of African airlines. This is an area where African airlines require support. Ms Funke Adeyemi, Secretary AFCAC, speaking recently at an African Union Commission and AFCAC convened Virtual Validation Workshop on the Study on Adverse Effects of High Taxes, Fees, and Charges on African Aviation said: “Excessive taxes, fees, and charges are choking African aviation and therefore we must harmonise policies to make air travel more affordable and competitive.” The Commercial Director for Ethiopian Airlines, Mr. at the recent AFRAA 57th AGA in Luanda, Angola put it brutally that taxes are ‘killers’ of airline business in Africa.
Assurance of safety and security whilst within the purview of the states, it is the airlines that bear the brunt of the impact of lack of safety and security in high financing and insurance rates. Therefore, states have the duty to work to improve their safety systems. Though air safety has continued to improve as recent statistics have shown, more still needs to be done.
African states must also invest in infrastructure to improve safety especially in air navigation and airports. There is a movement towards airport infrastructure improvement on the continent. This has to continue.
Duty waivers and improvement of customs processes will also help the progress of African airlines. The original equipment manufacturers (OEMs) are mostly based outside of the continent and delays in parts for Aircraft On Ground (AOG) is a detrimental to network improvement and schedule integrity. And without schedule integrity, partnerships with other airlines suffer.
Visa Openness cannot be over-emphasized. The continent needs to open more to itself to ensure the dense traffic that will drive future growth. Support for Sustainable Aviation Fuel programmes is necessary and perhaps also the enforcement of good corporate governance principles.
Might Collaboration Be Help?
Even as the government support is being canvassed, many experts feel that African airlines are their own undoing. It is argued that if African airlines chose to cooperate amongst themselves, some of the challenges of small size, lack of benefits of scale, operational challenges could be solved. Yes, there are sprouts of this collaboration here and there but this needs to be scaled. Ethiopian Airlines continues to show that collaboration can help African airlines. It is very doubtful if Asky will be the regional leader it is today without the collaboration with ET. We see Airlink in Southern Africa champion many codeshare agreements with other African carriers to extend their reach. The industry continues to wait for the full realization of the pan African airline dream being championed by SAA and KQ. At the AGA in Luanda, the CEO of TAAG Angola Airlines, Mr. Nelson Jesus Oliveira posited that even as it competes with Ethiopian on the commercial side, it has decided to partner with it on the Maintenance and Technical side in the spirit of African partnership. Airlink recently commenced a codeshare agreement with Ugandan Airlines and TAAG Angola signed a codeshare with South African Airways on the sidelines of the 57th AFRAA AGA. The industry needs more of this collaboration and even closer relationships.
Final Line
African aviation industry is poised for growth as many studies have shown. There is also an abundance of a youth population to power that growth, however, without the necessary friendly operating environment and government support the growth may not be to the benefit of African airlines. Infrastructure support upping of state safety and security ratings, and reduction of taxes and charges on air transport in the continent will help prop up the industry. ACI says its “research on the Taxation of International Air Transport and Airports estimates that the removal of the US$90 billion in taxes paid by aviation users would create 5.2 million jobs and US$180 billion in global GDP.” Government support to the industry is crucial.
