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Fifteen African airlines consolidate 2.1 billion litres of fuel demand to cut costs

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African airlines leverage 2.1 billion litres in joint fuel procurement

Fifteen major African carriers have consolidated their collective purchasing power to procure 2.1 billion litres of aviation fuel annually across 190 locations under the African Airlines Association (AFRAA) Joint Fuel Purchase Project.

 

The joint procurement framework includes major regional operators such as Kenya Airways, EgyptAir, Ethiopian Airlines, LAM Mozambique Airlines, Air Tanzania, and ASky Airlines, aiming to significantly reduce operating overheads for African carriers, where jet fuel accounts for up to 40% of total operational expenditure compared to the global average of 30%.

 

Speaking on the initiative, AFRAA Technical Director Gaoussou Konate explained that the project shifts contracting from supplier-controlled into-plane pricing to negotiated fixed supplier margins based on independent market benchmarks, protecting participating carriers from unilateral commercial price hikes.

 

Under the contracting structure, AFRAA consolidates annual fuel demand across key hubs to negotiate bulk commercial terms with suppliers, while individual airlines maintain direct bilateral supply agreements with selected station vendors.

 

Beyond cost reduction, the continental joint purchasing project provides structural protection against global market volatility, improves fuel quality oversight, and prepares participating regional carriers for the gradual transition toward Sustainable Aviation Fuel integration.

 

–ChannelAfrica/AFRAA–