Relationship between Financial Structure and Financial Performance of Flag Carriers in Africa

While airline profitability has remained a challenge over several years, the weakest performance identified by IATA reports was from airlines in Africa and Latin America. The main objective of this study to determine effect leverage, liquidity, asset tangibility on firm flag carriers Africa. Stratified random sampling technique adopted reduced working population 23 firms 4 namely Kenya Airways, Ethiopian Air Mauritius South African Airways. Data collected each airline’s website thirteen-year period between 2005–2017. findings were that leverage had significant either positive or negative depending whether debt is financed equity assets implying managers should endeavour target cost-efficient sources capital. Liquidity observed have no little explanatory power financial selected airlines. recommends implementing collaborative effort using tri-partite covenant managers, lenders capital government. governments local step support their Flag reducing gaps costs associated with acquisition other Airline part manage resources efficiently be held accountable periodic audits ensure they are invested sustainable levels profitability.