IATA’s Plea: Nurture, Don't Overtax, African Aviation
The International Air Transport Association (IATA) delivered a stern message to African governments at its 81st Annual General Meeting (AGM) in New Delhi: cease the excessive taxation and charges that are stifling the continent’s aviation sector. While acknowledging the promising 9% surge in passenger traffic witnessed in early 2025, IATA’s Director General, Willie Walsh, cautioned against “milking aviation.” He argued that exorbitant fees and restrictive policies are undermining the industry’s potential, despite the positive growth trend.
For African travel agents, this warning translates to a crucial understanding of the forces shaping their industry. High taxes and charges directly impact ticket prices, making air travel less accessible and potentially hindering sales. Moreover, these costs can discourage airlines from expanding routes and services, limiting connectivity within Africa and to international destinations. This, in turn, restricts opportunities for travel agents to offer diverse and competitive travel packages.
IATA’s call for a “strategic reset” resonates deeply with the challenges faced by African aviation. The association urged governments to adopt a more balanced approach, recognizing aviation not merely as a source of revenue but as a vital engine for economic growth. Lowering fees, investing in infrastructure, and liberalizing airspace are key pillars of this strategy. These measures would create a more conducive environment for airlines to thrive, leading to increased flight options, improved connectivity, and ultimately, greater opportunities for travel agents to expand their businesses.
The issue of blocked funds further complicates the landscape. Airlines operating in Africa often face difficulties repatriating their earnings due to government restrictions. This financial strain can limit their ability to invest in new aircraft, expand services, and maintain competitive fares. For travel agents, this can mean reduced reliability and fewer options to offer clients. IATA’s emphasis on addressing this issue underscores its importance for the overall health of the African aviation market.
The debate between government revenue needs and industry growth is a delicate one. While governments understandably seek to generate revenue from the aviation sector, excessive taxation can be counterproductive. By hindering growth and discouraging investment, high charges ultimately limit the long-term revenue potential of the industry. A more sustainable approach involves fostering a thriving aviation sector that generates economic activity, creates jobs, and boosts tourism, leading to broader economic benefits and increased tax revenues in the long run.
Open skies policies, another key recommendation from IATA, hold significant promise for African aviation. By removing restrictions on air traffic between countries, open skies agreements can stimulate competition, lower fares, and dramatically improve connectivity. This would be a game-changer for African travel agents, opening up a wealth of new routes and destinations for their clients and facilitating greater travel within the continent.
IATA’s message is clear: African governments must prioritize long-term growth over short-term revenue gains. By heeding the association’s recommendations, governments can unlock the full potential of African aviation, creating a more dynamic, competitive, and interconnected market that benefits airlines, travel agents, and passengers alike. This strategic shift is essential for ensuring the sustainable development of the African aviation industry and its contribution to the continent’s economic prosperity.
The current situation presents both challenges and opportunities for African travel professionals. By staying informed about these developments and advocating for policies that support sustainable growth, travel agents can play a vital role in shaping the future of African aviation.
