The Director-General of the World Trade Organization, Ngozi Okonjo-Iweala, has raised concerns over the profitability of African airlines, noting that carriers on the continent earn significantly less per passenger compared to the global average, despite relatively high ticket prices.
Speaking during an interview on Channels Television on Wednesday, Okonjo-Iweala said the current cost structure of the aviation sector in Africa requires urgent review to ensure sustainability and competitiveness.
“Despite the high ticket prices, African airlines earn less than the global average in terms of profit per passenger. The full cost structure needs to be reexamined,” she said.
Her remarks highlight a persistent challenge within Africa’s aviation industry, where operational costs—including fuel, maintenance, taxes, and regulatory charges—are often significantly higher than in other regions.
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Industry analysts have long pointed to factors such as limited infrastructure, multiple taxation, foreign exchange constraints, and fragmented airspace policies as contributors to the high cost of air travel across the continent.
For many passengers, this translates into expensive tickets, while airlines continue to struggle with thin profit margins, raising concerns about long-term viability.
Okonjo-Iweala’s intervention underscores the need for coordinated reforms, including policy harmonisation, investment in infrastructure, and cost reduction strategies, to unlock growth in Africa’s aviation sector.
Her comments also come amid broader discussions on improving intra-African trade and connectivity, which are seen as critical to economic development and regional integration.
As stakeholders consider the future of aviation in Africa, her call for a reassessment of the industry’s cost framework is likely to reignite conversations around efficiency, competitiveness, and the role of government policies in shaping the sector.