High costs and low traffic plus other operational headwinds hit African carriers
By Jeph Ajobaju, Chief Copy Editor
A $3.5 billion revenue loss in full year 2022 (FY 2022) has been estimated for carriers in Nigeria and other countries on the continent by the African Airlines Association (AFRAA).
This is equivalent to 20 per cent of the loss in FY 2019, AFRAA said in its latest African airlines’ performance updates, which approximated an $800 million revenue loss in the fourth quarter of 2022 (Q4 2022).
AFRAA said:
- November traffic reached 85.7 per cent and airline capacity 84.2 per cent of 2019 levels.
- Domestic market share has notched 34.3 per cent capacity and passengers carried 34.3 per cent
- Intra-Africa passengers carried is 30.9 per cent and capacity 24.8 per cent.
- Intercontinental in November was 34.2 per cent and capacity 34.8 per cent.
- African airlines’ operations on international routes have exceeded 2019 pre-pandemic levels by 2.28 per cent.
- Seven African airlines have exceeded the number of international routes they operated pre-pandemic.
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Aviation fuel price, pandemic impact
AFRAA lamented the price of aviation fuel (Jet A1) continued the upward trend in November, with the year-to-date global average price at $141.5 per barrel, according to reporting by Nairametrics.
The impact on global airlines’ fuel bill is estimated at $130.8 billion for FY 2022.
AFRAA said the number of coronavirus cases is once again on the rise in China, though the Zero Covid Strategy is in force in that country.
It reiterated infections remain low in Africa despite the low vaccination rate of 24.6 per cent compared with the global average of 68.5 per cent
“Worldwide, the number of cases has reached 630 million and 12.6 million in Africa. The recovery rate is 99.98 per cent worldwide compared to 98.01 per cent in Africa,” AFRAA added.
“The government of Uganda has extended the lockdown in the Ebola hotspots of Mubende and Kassanda by 21 more days. 55 confirmed deaths have been reported since the outbreak. So far, no travel advisories on the outbreak.
“Airlines are however advised to exercise caution and report any passengers showing signs of the Ebola virus to the health authorities for further investigations.”