Flying cheap in Africa isn’t easy: Can low-cost airlines succeed?
August 30, 2025
Low-cost carriers (LCCs) have transformed aviation in Europe and Asia, where they now account for close to half of market capacity. In Africa, however, the story is unfolding more slowly, with unique challenges shaping the pace of low-cost airline progress.
Conversations and insights from local stakeholders reveal an industry that is resilient and adaptive, but still weighed down by structural obstacles.
Jambojet’s strategy: Growth through stimulation
Jambojet, the Nairobi-based subsidiary of Kenya Airways, operates nine Dash 8-400s and is now a reference point for the viability of the low-cost model in East Africa.
In just over a decade, it has flown nearly nine million passengers and today commands more than half of Kenya’s domestic market. Many of these markets have expanded significantly, some growing at double-digit rates annually.
Jambojet CEO Karanje Ndegwa told AGN the key has been to listen to customers, invest in staff, and focus on underserved routes rather than head-to-head competition.
The airline has found its core audience among younger, tech-savvy travellers between 19 and 35 years of age, who are comfortable with online booking, mobile check-in, and even paying for tickets in instalments.
Small businesses and cost-sensitive corporate travellers have also embraced Jambojet’s offering. Over a third of the airline’s passengers now check in online, a striking shift in a market once dependent on manual processes.
“About 70% of our bookings are made within seven days of travel, many on the same day,” says Ndegwa.
Such booking behaviour, the reverse of European LCC practice, makes fuel hedging impractical, but allows Jambojet to adjust fares rapidly in line with oil price fluctuations.
Infrastructure bottlenecks quash African low-cost airline ambitions
Despite the progress, Jambojet’s efficiency is capped by infrastructure bottlenecks. Some airports outside Nairobi and Mombasa close by 20:00, and some, such as the port town of Lamu, lack runway lighting altogether.
The result is limited daily aircraft utilisation – an average of 7.6 hours per day compared to 10 or 11 in Europe.
Terminal congestion at Nairobi’s domestic facility presents another hurdle, where limited counter space strains the system during peak periods.
Automation and self-service kiosks help to some extent, but without major upgrades to infrastructure, utilisation rates and cost efficiencies remain restricted.
African low-cost carriers have huge operational costs
One of the biggest challenges for African LCCs is the cost of doing business.
Fuel prices cited in Kenya, for example, average around 17% higher than the global mean, with Kenya’s fuel taxes driving prices to more than 50% above international benchmarks.
Leasing aircraft is also more expensive – about 20% higher than in Europe – as lessors assign African operators a steeper risk premium.
These costs mean that comparisons with Europe’s ultra-low fares are often misleading.
As FlySafair points out, the “low-cost” element is less about headline ticket prices and more about the relentless pursuit of efficiency, from single-fleet operations to lean staffing and unbundled service offerings.
The fares may not be the cheapest globally, but they will be as competitive as possible within the realities of Africa’s operating environment.
Currency volatility weighs on the LCC bottom line
Another formidable obstacle is currency volatility. At Jambojet, around 85% of revenue is collected in Kenyan shillings, while 73% of expenses are denominated in US dollars. The imbalance leaves the airline exposed to exchange rate swings that can erode profitability overnight.
The problem is widespread across the continent. In South Africa, the Rand has depreciated by more than 40% since 2015, raising the cost of leases, parts, and aircraft acquisitions. Smaller carriers such as FastJet, operating in Zimbabwe, have been especially vulnerable.
According to Aaron Munetsi, CEO at Airlines Association of Southern Africa (AASA), most African LCCs mitigate this risk by concentrating first on domestic operations, venturing into international markets only once their financial footing is solid.
Despite everything, African LCCs remain resilient
Despite these challenges, demand has been resilient. Data from IBA shows that LCCs represent only about 5% of Africa’s seat capacity in 2024, just a fraction of the 45% in Europe and 40% in Asia.
But capacity recovery post-pandemic has been encouraging. FlySafair expanded aggressively, increasing available seat kilometres by more than 800% between 2018 and 2024, helped by the exit of rivals such as Comair.
Jambojet’s growth was steadier, at just over 100% during the same period, but strategically tied to Kenya Airways’ network and East Africa’s robust domestic demand. FastJet, meanwhile, managed only a modest increase of 12%, reflecting the difficulties smaller operators face in fragmented markets.
Policy and protectionism? The result is a mixed bag
Regulatory environments remain a patchwork of approaches. Munetsi observes that many African governments have embraced the principle of “fair competition,” applying identical rules to LCCs and legacy carriers.
Yet unlike Europe or the United States, Africa lacks secondary airports that would allow LCCs to fully capitalise on their cost structures. Without such infrastructure, cost bases remain elevated.
Continental open skies remain a distant prospect, but regional blocs have made incremental progress.
In West Africa, ECOWAS has pushed for reduced taxes and more liberalised airspace within the bloc, while SADC has held similar discussions. East Africa, however, has yet to make substantive moves toward liberalisation.
Changing attitudes towards the LCC model in Africa
If the economics remain difficult, attitudes toward the LCC model have nevertheless shifted in its favour.
A decade ago, African passengers resisted paying for checked baggage or being offered a no-frills product. Today, after steady education campaigns, unbundled fares are better understood and increasingly accepted.
For many travellers, the opportunity to pay only for what they use has become part of the culture of flying.
African low-cost airlines can survive, but not quite like Europe
The lessons from Jambojet, FlySafair and their peers all point to the same conclusion: the low-cost model is viable in Africa, but it cannot simply replicate the European or Asian blueprint.
Thin routes, high costs, volatile currencies, and infrastructure gaps mean that success depends on pragmatism, adaptability, and incremental growth.
As Munetsi reminds us, there are only seven registered LCCs across the continent, together accounting for a small sliver of capacity. Yet their survival, and in some cases, growth, proves that the model is finding its place in Africa’s aviation ecosystem.
“Africa moves at its own pace. We have to move one step at a time, without overextending. That’s how we will grow,” Ndegwa concluded.
