By Dominick Andoh| African Airlines to earn $1 profit per passenger in 2025 | Contrary to the claim that airlines in Ghana are generating significant profits from passengers, the latest forecast from IATA indicates that airlines operating in Ghana and the wider African market will only achieve a net profit of about US$1 per passenger in 2025.
While the global picture is one of strengthened profitability and a 3.6% net profit margin, the picture in Africa reflects the current environment of sustained demand against high operational costs.
There are high and multiple statutory taxes and charges on air transport and aviation fuel, as well as relatively weak economies and low foreign exchange reserves. “IATA expects African carriers to achieve a USD0.2bn profit in 2025, with a net USD1.00 profit per passenger,” the latest ATA forecast noted.
Africa’s carriers face high operational costs and a low propensity for air travel expenditure in many of their home markets.
A significant issue is a shortage of US dollars in some economies, which, along with infrastructure and connectivity challenges, hinders the airline industry’s expansion and performance. Despite these obstacles, there is sustained demand for air travel, which is expected to improve the region’s profitability marginally in 2025.
AviationGhana | African Airlines To Earn $1 Profit Per Passenger in 2025
