Africa’s airlines to lose around $4.9B in revenues due to Covid-19

Africa’s airlines to lose around $4.9B in revenues due to Covid-19

As the aviation industry attempts to recover from COVID-19 disruptions, an African airline trade association has reportedly predicted that the carriers based in Africa may lose over US$4.9 billion in sales this year.

According to the African Airlines Association (AFRAA), the capacity of airlines based in Africa increased by 64% in February, especially in contrast to the same month last year. Passenger numbers are at a little around 50% of what they were in 2019.

According to the Nairobi, Kenya based association, passenger numbers remained low in February as a result of certain countries' uncoordinated and unilateral travel health regulations following the breakout of the omicron variant.

According to the International Air Transport Association (IATA), airline passenger traffic in Africa would recover more slowly than in other nations, hitting 76% of the 2019 levels in 2022 and only achieving pre-crisis levels in 2025 (101%).

According to IATA, the slower rate of recovery is attributed to low COVID-19 vaccination rates throughout most of Africa, as well as the virus's repercussions on emerging economies.

Despite its massive population and size, Africa only constituted 1.9% of the airline passenger market globally last year. Africa's global market share was typically around 2.1% prior to COVID-19. Africa always has been a tricky region to run a profitable airline.

AFRAA, like the majority of airlines and trade associations, has called for an easing of travel bans. However, the organization is cautious in conveying its message about risk-based as well as measuring procedures.

According to OAG, COVID-19 rocked the market by eliminating some of the sector's most incompetent albeit large players, such as South African Airways.

Nevertheless, if Africa's airline industry is to develop and flourish in the aftermath of COVID-19, the region's skies must be liberalized, and airline ownership structures must change.

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