(Bloomberg) — African carriers suffered cumulative losses of about $3.5 billion over the past three years, a deficit that’s set to persist as restrictive fuel costs and taxes weigh on carriers.
The industry in Africa last made money in 2010, according to data from the International Air Transport Association, with another loss of $213 million anticipated this year. High costs of aviation fuel and energy, elevated charges, statutory taxes and levies and regulatory barriers are inhibiting African carriers’ return to profitability, the IATA said by email.
The continent accounts for just 2.1% of air transport activity despite being home to about 18% of the world population. Air travel in Africa is only expected to fully recover from the Covid-19 pandemic in 2024.
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