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The National Civil Aviation Authority (ANAC) reported that international airlines operating in Angola continue to struggle with repatriating their profits, while domestic carriers face mounting operational costs.
Presenting the sector’s performance overview to ANAC’s advisory board in Luanda, Regulatory Affairs Administrator Neusa Lopes noted that although national airlines have recorded revenue growth in recent years, expenses have surged even faster. “Liabilities are outpacing the sector’s income,” she said.
According to the 2024 Aggregate Report of the Public Business Sector (SEP), TAAG Angola Airlines posted a net loss of 134.2 billion kwanzas for the 2024 fiscal year. Lopes highlighted that high operating costs remain one of the industry’s biggest challenges, compounded by tax burdens such as the Motor Vehicle Tax (IVM), customs duties, and delays in ICMS (Tax on the Circulation of Goods and Services) refunds.
She added that two key legislative initiatives are underway to strengthen consumer protection and ensure fair competition in the aviation market. However, domestic demand remains unstable due to low purchasing power.
Regarding international operations, Lopes said that foreign airlines still face significant barriers to profit repatriation, aggravated by exchange rate volatility and limited access to foreign currency. “Exchange rate fluctuations have a major impact on the aviation sector, especially since Angola imports all aeronautical parts and equipment,” she explained.
Many operators, she noted, are forced to seek foreign bank loans, adding financial strain and complicating profit repatriation for both local and international carriers. Currently, 11 operators are licensed by ANAC, though only seven are active. Despite these challenges, air cargo traffic grew by 21.2% in 2024, marking a recovery of over 10.2% compared to 2019. The sector also saw an increase in the number of cabin crew, maintenance technicians, and air traffic controllers.
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Lopes emphasized the need to “fine-tune competitive mechanisms” to promote a fair, transparent, and competitive market, and said that ANAC’s short-term priorities include creating pricing policies, subsidies, and incentives to make air travel more affordable. “Despite structural and regulatory weaknesses, Angola’s aviation sector holds significant growth potential,” she concluded, pointing to the country’s strategic geographic position as a key advantage.
