NAIROBI, Kenya (AP) — African airlines are grappling with mounting financial pressure as the ongoing conflict in Iran drives jet fuel costs higher and creates supply chain disruptions across the continent’s aviation sector.
According to the African Airlines Association (AFRAA), the conflict has highlighted the continent’s overwhelming reliance on imported refined jet fuel, making carriers extremely susceptible to worldwide economic disruptions.
Even before the Iran conflict began, African airlines were already spending approximately 17% more on jet fuel compared to worldwide averages, AFRAA reports. The additional cost pressures are further squeezing profit margins that were already razor-thin throughout the industry.
“The impact is dire and a major shock for our members,” AFRAA Secretary-General Abderahmane Berthe told The Associated Press. “Fuel represents between 30% and 40% of airlines’ operating costs. Any increase directly affects their balance sheets.”
Industry observers are monitoring the Strait of Hormuz closely, a crucial international energy pathway that handled roughly one-fifth of global oil and fuel shipments before Iran essentially blocked shipping traffic there when the conflict started in February.
African airlines face magnified consequences due to structural challenges, such as elevated purchasing expenses and limited capacity to weather economic shocks.
According to Berthe, several airlines have implemented fuel surcharges, though most are unable to transfer the complete cost increase to travelers, forcing them to shoulder the financial burden.
“They cannot pass these costs to passengers as this will affect demand,” he said.
Supply interruptions have also created worries at key aviation centers like Nairobi, Kenya, and Addis Ababa, Ethiopia, where reliable jet fuel access is essential for both regional and international flight operations, Berthe explained.
Several airlines have already started modifying their networks, reducing flight frequencies and reassessing routes to handle increasing expenses and fuel supply uncertainty, he noted.
The situation has sparked renewed demands for Africa to build up local refining capabilities and decrease dependence on imported jet fuel.
“We need African solutions,” Berthe said. “Many African countries produce oil, but we still depend on non-African suppliers for refined jet fuel.”
Focus is growing on initiatives like Nigeria’s Dangote Refinery, which is anticipated to become increasingly important in providing refined fuel throughout the region, including to nations like Kenya, Ethiopia and South Africa.
“We have seen hubs like Addis (Ababa) turning to Dangote for supply,” Berthe said. “This is expected to ease pressure on fuel supply chains during this period.”
Even with these challenges, air travel demand across Africa continues to be robust. AFRAA forecasts passenger increases of approximately 6% each year, surpassing many international markets.
However, Berthe cautioned that ongoing disruptions could seriously impact profitability and connectivity.
“If this continues, the impact on African airlines will be very severe,” he said. “If Africa wants a resilient aviation sector, it must secure its own fuel future.”
