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IATA Urges African Governments to Maximize Aviation’s Economic Potential Amid 2024 Profit Forecast

Johannesburg, July 2, 2024 – The International Air Transport Association (IATA) has urged governments across Africa to capitalize on the strengthening aviation sector to maximize its potential for economic and social development.

IATA recently reported that African airlines are projected to achieve a collective net profit of $100 million in 2024, marking the second consecutive year of profitability post-COVID. Despite this milestone, the profit margin of approximately $0.90 per passenger falls well below the global average of $6.14.

Kamil Alawadhi, IATA’s Regional Vice President for Africa and the Middle East, highlighted significant challenges including infrastructure deficiencies, high costs, taxation burdens, and the absence of a continent-wide multilateral traffic rights regime. He stressed the urgent need for coordinated policy efforts to address these issues and fully leverage aviation as a driver of economic growth.

Alawadhi underscored IATA’s Focus Africa initiative, which focuses on six priority areas: Safety, Infrastructure, Connectivity, Finance and Distribution, Sustainability, and Future Skills. He noted Africa’s progress in safety, with no jet hull losses and no commercial aviation fatalities in 2023. However, challenges remain in implementing safety standards across all African states.

Aviation 360

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