RwandAir CEO Yvonne Manzi Makolo has drawn attention to the financial difficulties faced by airlines operating within Africa. During the 79th Annual General Meeting and World Air Transport Summit organized by the International Air Transport Association (IATA) in Istanbul on Monday, June 5, Makolo highlighted the high operating costs and onerous visa requirements experienced by African airlines, resulting in increased travel expenses for passengers on the continent compared to other regions.
While acknowledging the aviation industry's recovery from the COVID-19 pandemic, Makolo emphasized that operational costs for African airlines remained exceptionally high, despite some reduction in fuel prices. She attributed these elevated costs to factors such as fuel prices, taxes, landing fees, navigation charges, and other operational expenses.
Makolo stressed the urgent need for cost reductions to achieve profitability and sustainability in the aviation industry, particularly as the sector endeavors to rebound from the impact of the pandemic.
According to a press release issued by IATA, jet fuel costs are projected to average $98 per barrel this year, which is lower than the $135 per barrel average in 2022. Nevertheless, African airlines continue to face challenges due to higher taxes and fees, landing costs, and other charges in comparison to their counterparts in Europe and the Middle East.
The African Airlines Association (AFRAA) report unveiled that the average amount of passenger taxes and fees applied to air tickets in Africa was twice as expensive as in Europe or the Middle East, with an average of $64 in Africa compared to $30 in Europe and $29 in the Middle East.
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The AFRAA report also shed light on the adverse impact of additional charges on airlines' profitability, including landing and parking fees. The report indicated that African airlines paid an average of $624 in charges per airline, with fewer than 53 percent of airports charging below $600.
Regarding the progress of air agreements like the Yamoussoukro Decision, which aims to liberalize African skies, Makolo acknowledged that changes were taking place but at a sluggish pace.
She emphasized the need to not only open up the skies but also simplify visa processes, as African countries often impose stricter visa requirements on their own citizens compared to visitors from outside the continent.
Makolo expressed her frustration with the slow progress in implementing measures that would enhance air travel, open borders, reduce taxes and fees, and improve infrastructure in Africa. She underscored the clear advantages of open skies and open borders and urged for a more rapid transformation of the aviation landscape across Africa.
