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Africa|Aviation|transport|Operations
Africa|Aviation|transport|Operations
africa|aviation|transport|operations

African airlines on recovery path but still face challenges

19th October 2022

By: Rebecca Campbell

Creamer Media Senior Deputy Editor

     

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Across Africa as a whole, the commercial aviation sector had largely, but not entirely, recovered from the effects of the Covid-19 pandemic. This was highlighted by African Airlines Association secretary-general Abdérahmane Berthe at the recent Airlines Association of Southern Africa Annual General Assembly.

As of last month, he reported, African airline traffic had recovered to 82.52% of pre-Covid (2019) levels. African airline capacity had been restored to 82.1% of 2019 levels. The continent’s carriers had restarted operations on 99.2% of their 2019 routes. Indeed, eight African airlines were now operating more international routes than they had before Covid.

But African airlines now faced the challenge of a steep rise in fuel prices, occasioned by the Russo-Ukraine War. Last year, fuel prices had averaged around $78/bl. For this year, the forecast average fuel price was $142/bl.

Even so, African airlines were expected to further reduce their losses this year. In 2021, they had suffered revenue losses of $8.6-billion, equivalent to 49.8% of their 2019 revenues. Their losses for this year were predicted to come to $3.5-billion, or 20% of their revenues in 2019.

A major concern was the blocking of airline funds by African governments, preventing their repatriation to airlines’ home countries. This was the result of the strong dollar and imported commodity price inflation. “We call upon African governments to consider aviation as a priority sector and reduce the level of blocked funds,” he urged.  

A further significant concern was the decreasing share of African airlines in total global air traffic, he highlighted. In the early 1980s, this had stood at 3.5%, but by 2019 it had fallen to 2.5%. Now, it was about 1.8%. In terms of intercontinental traffic to and from the continent, in the 1990s African carriers had been responsible for 45%. By 2019 (before the pandemic), this had fallen to just 20%. And half of that proportion had been accounted for by just three African airlines. At the moment, as many as 22% of travellers seeking to fly from one African country to another had to do so through hubs outside the continent, either in Europe or the Middle East.

“Market access is a critical challenge for African airlines,” stressed Berthe. “The Single African Air Transport Market, launched by the African Union Commission, will positively impact air transport in Africa, increasing connectivity and reducing journey times and airfares.”

Edited by Creamer Media Reporter

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