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…Directs airlines to report tax hike, multiple levies
By Chinelo Obogo
The African Airlines Association (AFRAA) has written to the headquarters of the Economic Community of West African States (ECOWAS), demanding a lucid explanation for the delay in implementing the long-awaited 25% reduction in airline charges. The association expressed concern that the postponement is creating uncertainty for carriers and impeding operational planning for 2026. AFRAA also issued a directive to member airlines to immediately report any plans by their respective countries to increase taxes, charges and fees as uncertainty shrouds the implementation of the ECOWAS promised tax relief measures. The directive came during AFRAA’s January Edition of its Virtual Industry Affairs Briefing held on Wednesday this week, where the organisation released its December 2025 traffic data and expressed growing frustration over the lack of clarity surrounding ECOWAS’s decision to reduce aviation charges by 25%.
AFRAA revealed that information on the implementation of the charge reduction remains “sketchy,” with airlines still awaiting guidance nearly a month after the measures were scheduled to take effect on January 1, 2026.
The organisation also disclosed that it has formally written to the ECOWAS Commission requesting detailed information on the implementation strategy, rollout plan, and timelines for the tax relief measures. The association said this information is needed to enable the effective monitoring of the policy. However, as of late January 2026, AFRAA said this information has not been forthcoming from ECOWAS and it has put airlines operating in West Africa in a bind as the uncertainty has created challenges for carriers attempting to plan their strategies for the year, as they cannot adjust pricing without knowing whether and how the promised relief will materialise.
The 15-member ECOWAS bloc made the decision to reduce aviation charges by 25% toward the end of 2025 and this caused excitement in the industry as stakeholders said that the measures would improve the cost of flying, stimulate intra-African travel, and enhance connectivity within the West African sub-region. However, the failure by ECOWAS to communicate how it would implement the policy has dampened the initial enthusiasm and raised questions about its commitment to executing the policy.
Airlines in a fix
With the scheduled January 1, 2026 implementation date now behind them and no official guidance issued, airlines have been left in a difficult position. Uncertainty over which specific charges would be affected, how reductions would be calculated, and how the policy would be applied has made it impossible for carriers to make informed decisions about their operations for 2026.
AFRAA said that despite continuing to anticipate that communication on the implementation will be released soon, the lack of clarity is creating operational challenges as airlines need to finalise their plans for the year.
Excessive taxation
AFRAA used the briefing to reiterate its stance on the impact of excessive taxation on African aviation. The association stated that excessive taxes and charges increase air fares, which in turn reduces demand. It said high taxes lead to higher fares, which reduce passenger numbers, forcing airlines to cut frequencies and spread the costs of operations over fewer passengers. This, it said, undermines the ability of African carriers to compete effectively with international airlines.
AFRAA said that while International Civil Aviation Organisation’s (ICAO) principles regarding aviation charges are widely endorsed across the continent, many countries lack the independent oversight, transparency and predictability in their implementation. It said this gap creates an environment where arbitrary tax increases can be imposed without consultation or consideration of their economic impact. It also means that even when positive policy decisions are made such as the ECOWAS charge reduction, the lack of transparent implementation can undermine their effectiveness.
December 2025 traffic data shows strong performance
Despite the taxation challenges, AFRAA’s December 2025 data release revealed strong performance across African aviation markets. The capacity rankings showed Cairo International Airport maintaining its position as the continent’s busiest hub with over 1.7 million passenger seats sold during the month.
Ethiopia’s Addis Ababa Bole International Airport followed in second place with 1,295,195 seats sold, while Morocco’s Mohammed V International Airport recorded 656,902 seats. South Africa’s Cape Town International Airport sold 655,432 seats, with Nigeria’s Murtala Muhammed International Airport completing the top five with 550,917 seats.
Others are Morocco’s Marrakesh Menara Airport with 546,652 seats, Algeria’s Houari Boumediene Airport with 534,063 seats, Kenya’s Jomo Kenyatta International Airport with 516,178 seats, and Egypt’s Hurghada International Airport with 437,129 seats sold.
Regional capacity share analysis
AFRAA’s regional capacity analysis for December 2025 showed Northern Africa had the largest share at 37.7% of total African airline capacity. Eastern Africa held the second position with 23.5%, followed by Southern Africa at 19.7%. Central and West Africa combined accounted for 19.1% of capacity by region.The modest share held by West Africa explains why the ECOWAS charge reduction policy is important for the sub-region as it could help West African carriers expand their operations.
International carriers win
The December data also showed competitive challenges facing African carriers. In terms of international capacity covering both regional and intercontinental routes, African carriers had 49.2% market share compared to 50.8% for non-African carriers.
For intercontinental routes, non-African carriers control 67% of capacity while African airlines account for just 33%. Traffic share data showed the same capacity patterns, with non-African carriers holding 50.8% of international traffic compared to 49.2% for African airlines. On intercontinental routes, African carriers’ traffic share stood at 32.9% versus 67.1% for foreign competitors.
Passenger traffic from 2019 to date
AFRAA’s data showed total passenger traffic from African airlines climbing from a COVID-era of 34.7 million in 2020 to 113 million in 2025. From a pre-pandemic level of 95.6 million passengers in 2019, traffic collapsed to 34.7 million in 2020. The recovery began gradually with 48 million passengers in 2021 and 67 million in 2022, before moving up to 84.8 million in 2023 and 96 million in 2024.
The 113 million passengers carried in 2025 represented an 18% increase over 2024. Looking ahead, AFRAA projects African airlines will carry 137.3 million passengers in 2026, representing a substantial 21.5% increase over 2025 figures.
Intra-African connectivity
Despite overall growth, AFRAA’s data revealed that intra-African connectivity continues to be constrained by restrictive policies. Third and fourth freedom rights which allow airlines to carry passengers between their home country and another country, still account for 78% of intra-African capacity as of December 2025.
Fifth freedom rights, which permit airlines to carry passengers between two foreign countries as part of services connecting to their home country, represent just 22% of capacity. This limitation has continued to restrict the development of efficient hub networks and direct connections between African cities, forcing many travelers to resort to traveling through European or Middle Eastern hubs even for intra-continental journeys.
Cargo market performance
AFRAA’s cargo traffic analysis showed Eastern Africa leading the continent with a 30% market share, followed by Northern Africa at 25%, Southern Africa at 24%, and Central and West Africa combined at 21%. Total cargo across all regions amounted to 158 million kilograms.
The outbound and inbound analysis revealed that Southern Africa and Northern Africa are net importers, with inbound cargo volumes exceeding outbound shipments while Africa’s global cargo market share remains at just 2% of worldwide freight traffic.
Gains
Financial performance data provided encouraging signals for the industry’s health. Passenger revenue analysis for January through November 2025 showed a 7.4% increase compared to the same period in 2024. November 2025 alone recorded a robust 10.5% year-over-year increase, suggesting strong momentum as the year concluded.
