African aviation is entering a contradiction. The continent has the world’s fastest passenger growth, yet its airlines remain among the least profitable, squeezed by high charges, expensive fuel, blocked revenues and political hesitation over integration.

In March 2026, African carriers recorded a 20.6pc year-on-year increase in passenger traffic, the highest growth rate globally. But the average airline on the continent earns only $ 1.3 in net profit a seat flown. The industry is fragmented by regulation, weakened by costs and burdened by governments that often treat aviation less as economic infrastructure than as an easy revenue source.

However, the aviation sector supports 8.1 million jobs across Africa and contributes 75 billion dollars to the continent's GDP, including 42 billion dollars linked to tourism. Each year, it carries 110 million passengers, equal to 2.9pc of global passenger traffic, and moves 1.2 million tonnes of air freight. Experts following the continent's aviation business insist that aviation can create prosperity more durably than taxation when governments see it as a strategic enabler.

Ethiopian Airlines Group (EAG) offers both the promise and the pressure that the sector experiences. Already supporting two billion dollars in economic activities and more than half a million jobs across the aviation community, passenger demand is expected to triple over the next two decades. Ethiopian Airlines, the continent’s strongest carrier, performs above the African average, according to Mesfin Tassew, CEO of the Group, although he declined to disclose figures.

“The Ethiopian Airline’s profit margin is higher than the average,” he told Fortune.

He attributed the performance to the Group's strength and wider network of destinations. But he shifted focus to the wider market. Nearly half of the continent’s 50 airlines are operating at a loss. Japan Airlines performs better because it is more established and has a wider network. The comparison could be unforgiving.

African airlines collectively earn about 200 million dollars a year. Latin America, the next-least-profitable region, earns 10 times as much. Other regions record profits from 6.6 billion dollars to 14 billion dollars. Asia-Pacific airlines earn 3.2 dollars a passenger, nearly three times Africa’s level. In the Middle East, the figure reaches 28.6 dollars, more than 20 times Africa’s profit a seat. Other regions make between 5.70 dollars and 10.90 dollars.

For the past 10 years, African airlines’ global market share has remained at two percent.

Yet African tickets are among the world’s most expensive. Government taxes and infrastructure charges on the continent are about 15pc above the global average. Tanzania’s Advanced Passenger Information-Passenger Name Record (API-PNR) charge of 45 dollars to 48 dollars for a one-way ticket is cited as the highest globally.

“I can't understand the reason behind these numbers,” said Kamil Alawadhi, regional vice president for Africa & the Middle East of the International Aviation Transport Authority (IATA). “Travel restrictions are pushed even through the continent’s countries.”

Many in the industry see the cost base deeply punishing, for African carriers have the highest unit costs in the world, nearly double the industry average. Fuel prices are 17pc higher than global benchmarks. Air navigation charges are more than 10pc higher. Maintenance, insurance and capital costs are six percent to 10pc higher than in other continents. A 106.6pc year-on-year spike in jet fuel prices, driven by disruptions in the Middle East, has deepened the pressure.

Alawadhi rejected the idea that airline protectionism is uniquely African. There is “no proof that there is protectionism in African country airlines, since similar practices occur worldwide.”

"The issue is what protection should achieve," he said. "Governments should protect national interests and ensure aviation contributes to economic output and citizens’ welfare, regardless of airline ownership."

He would rather blame African governments for showing neglect. His team spent three years trying to engage the Cameroon Central Bank on the Zazo issue. Even a four percent drop failed to trigger a response. He believes such silence tells the sector that authorities “don't care what damage is done,” whether an airline is protected or not.

Blocked funds are the clearest dysfunction. As of March 2026, airlines had 774 million dollars stuck in African countries, the largest share of the global total of 900 million dollars. Algeria held 258 million dollars, followed by the Central Africa Zone, Mozambique, Eritrea and Angola. For airlines operating on narrow margins and rising costs, those knowledgeable of the industry fear that the inability to repatriate revenue weakens liquidity and confidence.

Policy borders still restrain the demand that aircraft can cross. Nearly half of intra-African travel still requires a visa before departure, keeping flying an elitist service rather than a tool for regional integration.