LUSA 10/23/2025

Lusa - Business News - Angola: International airlines face issues repatriating profits - regulator

Luanda, Oct. 22, 2025 (Lusa) - Angola's National Civil Aviation Authority (ANAC) said on Wednesday that international airlines operating in the country continue to face difficulties in repatriating their profits and that national operators continue to face high operating costs.

The situation was reported today by ANAC's Regulation Area administrator, Neusa Lopes, when she presented her assessment of the aviation sector to the authority's advisory board, which is meeting in Luanda.

According to Lopes, domestic airlines have seen an increase in revenue in recent years, but at the same time, an increase in operating costs.

"Liabilities are outweighing the revenue that the sector has been generating," she said.

Angolan flag carrier airline TAAG had a net loss of 134.2 billion kwanzas (€123.7 million) in the 2024 financial year, according to the company's financial statements contained in Angola's 2024 Aggregate Report on the Public Business Sector (SEP), consulted in September by Lusa.

Neusa Lopes acknowledged that high operating costs are among the challenges facing the sector, along with the broadening of the tax base with an impact on Motor Vehicle Tax (IVM), customs tariffs and delays in Value Added Tax (VAT) refunds.

"We have the implementation [of the law] on the protection of consumers of air services and the guarantee of fair competition," two pieces of legislation that are in the pipeline, the director pointed out, stressing that the sector is experiencing "unstable demand in the domestic market influenced by low purchasing power".

As for the challenges facing Angola's civil aviation sector, the ANAC administrator said that international airlines still have difficulties repatriating their profits, noting that the regulator has also identified weak supervision of the sector's business behaviour in the face of exchange rate changes.

According to the official, the exchange rate changes in the country "have a major impact on the civil aviation sector," mainly because the country does not manufacture aeronautical parts or components - which are only purchased in foreign currency - compounded by the difficulties operators face in accessing bank financing.

"We have been monitoring our operators and they often resort to bank credit abroad with all the constraints that this may entail, which then have an impact on the issue of repatriation difficulties, which is not only reflected in our international operators, but also in our domestic operators," she lamented.

Neusa Lopes said, on the other hand, that 11 operators are licensed by ANAC, but only seven are active, and that air cargo transport has seen sharp growth of around 21.2% - data from 2024 - representing a recovery of more than 10.2% compared to 2019.

The sector is also experiencing growth in cabin crew, maintenance technicians and air traffic controllers.

For the official, ANAC must also "fine-tune" its competitiveness mechanisms to ensure a "fair, transparent and competitive market".

The ANAC administrator pointed to the revitalisation of the market as a short-term priority, with a focus on creating fare policies, subsidies and incentives for passengers, insisting that specific legislation is in the pipeline to "ensure more accessible air transport for the population".

"This diagnosis shows that Angola has great growth potential, even with regulatory and operational structural weaknesses. Our geostrategic location offers clear competitive advantages in air transport," she concluded.

The first ANAC 2025 advisory board addresses the Diagnosis of Civil Aviation in Angola under the slogan "Strong Regulation, Safe Operations, Guaranteed Protection".

 

 

 

 

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