African airlines fall behind in the financial stakes

July 19, 2018

Speaking in Routes Africa in Accra, Ghana, on a panel addressing the matter of 'Creating cultural change – How can innovation open up new markets', Libyan Wings former CEO Edgardo Badiali said recently on average around the world airlines have recorded a profit of $7.7 per seat while African airlines have made a dollar loss on each seat.

And he added it is part of a trend that dates as far back as 2010, the last time African airlines were in the black with an overall profit of $100 million.

He added: 'The rest of the nine years to date, African airlines have been making losses. Over the last three years the world’s airlines have made their biggest profits but African airlines have continued to make losses.

'We need to change this and we can only sustain the business and grow the business if we can improve the airlines’ profitability.'

Ghana Airports Company group executive for airport operations Charles Hanson Adu said airports can also do their bit to help drive airline profitability by speeding up rotations, allowing them to spend more time in the air where the money is made.

Badiali said African airlines have also been slow to adopt the smart phone revolution which has swept the continent.

However, he admitted with Africa still largely a cash economy, sorting out an effective method of payment for mobile transactions is proving tough.