New Airline Routes to Drive Regional and Global Tourism Growth in Africa

Published on December 11, 2025

The aviation sector in Africa continues to face significant profitability challenges, with African airlines projected to generate just $0.2 billion in net profit in 2026, according to the latest projections from the International Air Transport Association (IATA). This figure contrasts sharply with the record-breaking performance expected from the global airline industry. Despite a boom in tourism and rising passenger numbers across the continent, African airlines struggle to overcome deep-rooted operational and structural issues that limit their ability to achieve higher profitability.

Several African countries are seeing an increase in international visitors, with the tourism sector rebounding strongly post-pandemic. However, despite this growth, African airlines are constrained by high operating costs, fragmented markets, and stiff competition from well-capitalized foreign carriers, which has kept the financial performance of local airlines modest.

High Operating Costs and Currency Volatility

One of the most significant barriers to profitability for African airlines is the high cost of operations. Jet fuel prices in Africa are approximately 30% higher than in other regions, largely due to the limited refining capacity and the region’s dependence on fuel imports. Additionally, airport charges, taxes, and navigation fees are much higher than in other parts of the world, further increasing the cost of running airline services.

Many African airlines are also impacted by currency volatility, with most of their major expenses, including aircraft leases and fuel, being paid in US dollars or euros. However, the majority of revenue is earned in local currencies, which exposes airlines to fluctuations in exchange rates, impacting their cash flow and profitability.

Fragmented Aviation Market and Regulatory Barriers

The fragmented regulatory environment across the African continent exacerbates these challenges. The lack of liberalization in the aviation sector and restrictive bilateral air service agreements have limited airlines’ ability to expand their networks. This regulatory fragmentation means that only 19% of intra-African routes offer direct flights, while African carriers hold a shrinking share of both regional and intercontinental traffic.

The lack of connectivity between African countries makes travel more expensive and inconvenient for passengers, which in turn limits demand for air travel. Although initiatives like the Single African Air Transport Market (SAATM) exist to encourage open skies across the continent, progress has been slow, and many regulatory hurdles remain. As a result, African airlines are unable to achieve economies of scale, forcing them to compete on fragmented, less profitable routes, which impacts profitability.

Competition from International Carriers

African airlines are also grappling with fierce competition from international carriers, particularly those from the Middle East and Europe, which dominate the long-haul routes and are increasingly encroaching on regional markets. These well-capitalized airlines benefit from large, modern fleets, extensive global networks, and government-backed funding, enabling them to offer lower fares and better service.

African airlines, by contrast, often rely on older, less fuel-efficient aircraft and have limited access to affordable financing for fleet renewal. This leaves them at a competitive disadvantage, particularly on high-demand international routes. Many African carriers are left with the less profitable domestic and regional segments, where demand is volatile, and yields are low.

Opportunities for MICE and Tourism Growth

Despite these challenges, the growth of MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism and the increasing interest in African destinations offer new opportunities for African airlines to tap into high-value tourism markets. The rise in business and leisure travel is opening up potential for airlines to expand their services to international travelers seeking seamless connectivity to various African hubs.

Countries like Morocco, Ethiopia, and Rwanda are investing in infrastructure and developing competitive offerings for business travelers, increasing demand for flights into their capitals and major cities. Ethiopian Airlines has made significant strides in boosting connectivity to and from Africa, positioning itself as a leader in regional air travel.

Solutions: Fleet Modernization, Partnerships, and Digital Transformation

The future of African aviation will largely depend on fleet modernization, improved air connectivity, and strategic partnerships. African airlines must invest in fuel-efficient aircraft to reduce operating costs, as demonstrated by Ethiopian Airlines, which has successfully lowered its fuel expenses with newer, more efficient models. By modernizing their fleets, airlines can lower their unit costs and remain competitive in the global market.

Furthermore, digital transformation can help African airlines streamline operations, optimize routes, and improve the customer experience. Advanced technologies, such as predictive maintenance and analytics for route optimization, can also enhance efficiency and reduce costs, leading to improved profitability.

Strategic alliances and partnerships with global carriers and other regional airlines are essential to achieving economies of scale, sharing resources, and accessing new markets. Codeshare agreements and joint ventures can help African airlines expand their networks and offer more attractive options to passengers, increasing their market reach and profitability.

The Role of Government Support and Infrastructure Investment

Government support is crucial for addressing the regulatory barriers that currently hinder the growth of African aviation. Policies that promote open skies, reduce taxes and fees, and encourage private investment in airport and aviation infrastructure are key to supporting airlines and boosting the tourism sector. The creation of more Special Economic Zones (SEZs) and improvements to the Tourism Satellite Accounting System (TSA) will enable better planning and resource allocation, promoting investment in tourism infrastructure.

Conclusion: The Road Ahead for African Aviation

Despite the challenges faced by African airlines, there are clear opportunities to grow the MICE and leisure tourism sectors by addressing infrastructure gaps, improving safety standards, and modernizing fleets. By embracing digital tools, building stronger alliances, and securing government support, African carriers can enhance their competitiveness in the global aviation market.

As the continent continues to expand its tourism offerings and improve connectivity, the profitability gap between African airlines and their international counterparts can be narrowed, allowing African aviation to thrive and play a central role in the global tourism landscape.