African airlines to post USD 0.1bn loss in 2017

Passenger demand is expected to grow by 7.5%, slightly behind expected capacity growth of 7.9%.

African carriers remain in the red; but without a deterioration on 2016 performance. On safety, the region’s carriers achieved a major milestone with zero jet hull-losses in 2016. And a general improvement in commodity prices is helping invigorate the continent’s economies (and offset fuel price increases). 

This trend, however, is unlikely to accelerate substantially. The burdens of high taxes, higher-than-global-average fuel prices, competition from the Gulf and limited intra-continental liberalisation remain. The balance of these factors is expected to result in continued small losses.