- African Airlines revenues for January 2024 were $ 1.83 billion compared to $1.56 billion in November 2023
- Available seats per kilometre (ASKs) also exceeded the level of March 2019 by 7.7 per cent.
- Open skies will boost intra-African connectivity and drive down airfares.
Investments among the continent’s carriers have begun to pay off as African Airlines Revenues and seat numbers hit a record high, a new report by African Airline Association (AFRAA) has shown.
The number of airline seats offered in the region has increased by 12.6 per cent to 16.1 million in March 2024, thanks to new routes and flight frequencies.
For the first time in four years, the industry surpassed pre-COVID-19 monthly figures of 14.3 million, recorded in March 2019.
The year 2024 is shaping up to be a significant year of recovery for the aviation industry. Airlines have regained their pre-Covid levels of capacity and traffic and surpassed them, marking a notable turnaround.
In the past three months, Kenya’s national carrier has re-introduced flights to Somalia UAE and increased its frequencies for the New York route.
“African carriers accounted for 49.5 cent of the international capacity and 35.9 cent of the intercontinental capacity. AFRAA estimates that passenger traffic carried by African operators in 2024 will be about 98 million,” the association said in the monthly update.
Over the same period, available seats per kilometre (ASKs) also exceeded the level in March 2019 by 7.7 per cent.
Available seat per kilometre measures the airline’s flight passenger carrying capacity. It is the total number of available seats multiplied by kilometres travelled.
Regarding capacity split between African and non-African operators on regional and intercontinental routes, AFRAA estimates 50.7 per cent and 49.3 per cent, respectively.
Further disaggregation of capacity on only the intercontinental routes reveals a much lower share of 35.7 per cent for Africa as against 64.3 per cent for non-African operators.
Though continent-wide intra-African connectivity has exceeded pre-COVID levels since December 2022, significant hubs like Johannesburg and Casablanca have yet to reach 2019 levels.
Similar to traffic growth, African airlines are also seeing improved revenue performance.
African Airlines Revenues
AFRAA estimated revenue for January 2024 was US$ 1.83 billion compared to US$1.56 billion in November 2023, indicating a revenue growth of 14.75 per cent.
The global price of Jet A1 continues to fluctuate from week to week. The global average jet A1 price ended the week of March 22 2024, up 1.1 per cent at $109.08/bbl.
ATNS in South Africa implemented the revised Air Traffic Service Charges, effective May 1, 2024. These charges were reviewed and approved by the regulator.
A proposed $20 per passenger fee at Kotoka International Airport (KIA) in Accra, Ghana, to cover airport maintenance works and baggage belt repairs without following due process attracted condemnation from operators and the industry.
Regulatory/Industry Affairs
While there is a need for investment in infrastructure to meet growing demand, AFRAA advocates strict adherence by all service providers to the stipulated ICAO principles contained in DOC9082. Following intervention by the parliament of Ghana, levying of the proposed fee has been suspended.
Airplanes Africa Limited (AAL) has achieved a commendable feat by assembling the first Skyleader 600 aircraft in Tanzania. This could begin Africa’s venture into aircraft assembly and components manufacture.
Uganda has reaffirmed its commitment to signing the solemn promise to the Single African Air Transport Market (SAATM). If done, this will bring to 39 African States that have committed to opening their markets.
Similarly, internal discussions are ongoing in Tanzania on their commitment to SAATM. If the two countries join, EAC will boast a significant domestic market for air travel.
Open skies will boost intra-African connectivity, drive down airfares, stimulate air traffic and revenue growth across the continent, and create jobs.
Read Also: Hope as Africa’s Aviation sector shows signs of positive growth
Sierra Leone CAA’s Consumer Protection Unit has contacted her ECOWAS partners in the Consumer Protection industry to harmonies the positions to safeguard the sub-region consumer interest in civil aviation.
Striking a balance between protecting passenger rights and ensuring sustainable air services is crucial for a healthy aviation industry.
Ecuador has made positive strides with a new tourism law that eliminates currency repatriation tax and reduces the 5 per cent jet fuel tax by 1 per cent annually over the next five years.
The African Continent can emulate this gradual tax reduction model of Ecuador to reduce some burdensome taxes hampering the continent’s aviation development.
ICAO and the Aviation Working Group (AWG) are collaborating to enhance cross-border aircraft transferability by promoting compliance with the Cape Town Convention. This will improve efficiency and safety in the aircraft leasing and financing sector, and AFRAA commends the two organisations for the initiative.
