African airlines are projected to maintain a net profit of $0.2 billion in 2026, even as passenger traffic is expected to grow by 6%, according to the latest financial outlook for the global airline industry released by the International Air Transport Association (IATA) on Tuesday.
Despite this growth, carriers in the region continue to face very thin profit margins, with a net margin of just -1% and revenue per passenger forecast at $1.30.
IATA’s report noted that African airlines face the highest unit costs globally, with an average cost per available tonne-kilometre (ATK) of around 140 US cents—nearly double the industry average.
Capacity is projected to expand by 5.7% in 2026, reflecting modest growth in available seat-kilometres (ASK) as airlines proceed cautiously amid high operating costs, older fleets, fragmented markets, and restrictive regulatory environments. Low GDP per capita keeps air travel highly price sensitive, while visa restrictions, high passenger charges, and corporate tax rates averaging 28% further constrain profitability.
The IATA 2026 global outlook projects airline profitability stabilizing at $41 billion, with a net margin of 3.9% and 5.2 billion passengers expected worldwide.
While African carriers face thin margins, global airlines are navigating cost pressures, supply chain challenges, and regulatory burdens to sustain profitability. High load factors, growing ancillary revenue, and resilient cargo operations are key drivers, offering both opportunities and lessons for African carriers.
Middle Eastern airlines are projected to be the most profitable globally in 2026, with net profits of $6.8 billion, a net margin of 9.3%, and revenue per passenger of $28.60, supported by strong hub connectivity and favorable regulatory environments.
North American carriers are expected to earn $11.3 billion in net profit in 2026, but demand growth is slow at 1.5%, constrained by pilot shortages, capacity limits, and a stagnating domestic market.