African airlines face 0.2% profit margins as 2026 traffic hits 137.3 million

African airlines face extremely thin profitability as capacity growth accelerates faster than demand. Passenger traffic across the continent is projected to reach 137.3 million in 2026, representing a 21.5 percent increase from 2025 levels. However, these carriers are expected to achieve a profit margin of only 0.2 percent, described as among the thinnest globally. The Africa Roundtable of Airlines announced these figures at an event in Nairobi on March 26, 2026. AFRAA, representing 50 member airlines that operate over 85 percent of international traffic among African operators, issued an urgent call for coordinated government and financing interventions to convert surging travel demand into sustainable profitability. Industry data indicates operational bottlenecks are severely compressing earnings. Taxes, fees, and charges account for 35 to 40 percent of ticket prices on the continent, compared to a global average of roughly 20 percent. Simultaneously, governments across Africa are withholding an estimated $774 million in airline funds as of March 2026, representing the largest regional share of trapped funds globally. While the continent's population is projected to reach 1.58 billion with a median age of 19 and economies expanding at 4.3 percent annually, air travel penetration remains just 7 percent of the population.