Summary:

On 12 May 2025, President Kais Saied reiterated his rejection of any plans to privatize Tunisia’s state-owned airline, Tunisair, during his meeting with Minister of Transport, Rachid Amri.  

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The meeting tackled the planned revitalization of the public transport sector and the state of Tunisair’s operations ahead of the summer tourist season.  

The Minister of Transport announced an increase in the operational fleet to 14 aircraft by the end of May, through 11 company-owned planes and 3 leased aircraft.  

Earlier in May, Tunisair announced positive performance indicators showing an increase of 6% in total passengers and 5.4% in occupancy rate from October 2024 to March 2025 compared to the same period a year prior.  

Tunisair’s report shows a 19% drop in fuel costs in the 2025 quarter compared to the 2024 quarter and a decrease of 18% following the repayment of its current loans, while its liquidity situation improved by 11%. 

It is notable that the airline is engaged in a restructuring plan to save the company through modernizing the fleet with fuel-efficient aircraft, and repairing malfunctioning planes. The restructuring also includes optimizing destinations to keep only the most profitable routes as well as reducing the payroll and strengthening management and accountability.  

Outlook: 

President Kais Saied’s statement is likely in response to growing calls to sell a stake in the state-owned airline and enter a public-private partnership to manage the company going forward. This has been presented by many commentators as a solution to the critical financial situation Tunisair faces, with debts reaching 1.3 billion dinars.  

The positive indicators released reflect improvement following the implementation of an emergency plan to save the company, which is likely to continue with the activation of more aircraft after purchase and repair operations.  

However, the airline still faces significant challenges related to the demands of its employees and unions that are unlikely to accept efforts to reduce the payroll without a fight.  

Additionally, the company’s growth is likely to continue being hindered by its obligation to pay back debts, thus restricting its competitiveness with other local and regional airlines.  

Negative customer feedback due to strikes, delays, and last-minute cancellations is also badly impacting the company’s reputation, as it has for several years. 

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