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Browsing: African Airlines
- African carriers will post a loss of $638 million in 2022 and narrow it to $213 million in 2023, the International Air Transport Association (IATA) has revealed
- The African region is expected to serve 86.3% of pre-crisis demand levels with 83.9% of pre-crisis capacity
- Overall, the report noted that all regions’ financial performance continues to improve since the depth of the pandemic losses seen in 2020
The International Air Transport Association (IATA) has released new data indicating that African airlines will post a loss of $638 million in 2022 and narrow it to $213 million in 2023.
The report dubbed Economic Outlook & State of the Industry revealed that passenger demand growth of 27.4% in Africa is expected to outpace capacity growth of 21.9%. Further, IATA said that the region is expected to serve 86.3% of pre-crisis demand levels over the year with 83.9% of pre-crisis capacity.
Why African airlines…
Airlines are expected to make big losses in 2020 with the challenges being experienced in containing new coronavirus variants and slower vaccination in some African countries according to the International Air Transport Association (IATA).
According to IATA, airlines are expected to post-tax losses of 47.7 billion in 2021 from the initial projection of $38 billion in December.
“Financial performance will be worse and more varied this year than we expected in our December forecast, because of difficulties in controlling the virus variants and slower vaccination in some regions,” said IATA.
The aviation sector is expecting $81 billion in cash burn despite large airlines having raised enough cash to cover for losses. IATA said that smaller airlines will need support from the government or to raise funds from banks or capital markets which will add to the debt burden and balance sheet leverage problem in the industry.
African airlines in 2020 …
The International Air Transport Association (IATA) highlighted three main priorities that governments in Africa can work on to ensure the survival of African aviation, travel and transport and be able to support economic growth, recovery and development.
IATA highlighted the priorities as: the safe reopening of borders, planning safe restart of operations and the release of committed aid and blocked funds as well as constant financial relief.
IATA noted that in 2020 African airlines received $2.04 billion in government aid which was mostly distributed through cash injections, direct government loans and equity financing. Despite this support, eight airlines in Africa filed for bankruptcy or entered into business administration last year.
In 2020, Air Mauritius (AM) was the first African airline to enter voluntary administration due to the pandemic. South African Airways (SAA) which racked up more than $3.9 billion in debt since 1994 followed as well as South African Express …
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Availability of liquidity is the main issue to be addressed for airlines to survive and restart their operations…
The African aviation is at a standstill according to a report by the International Air Transport Association (IATA).
According to IATA’S report, on May, 12th African flights were operating at just six per cent of the level of January 2020. The report also states that African airlines total loss of revenue is at around $6 billion so far which means a GDP loss of about $28 billion and three million job loss in the industry.
Many African airlines have gone into administrations including South African Airways, South African Express, Air Mauritius and South Africa’s Comair with others also expected to follow suit. Air Mauritius noted that the objective of going into voluntary administration is to safeguard the interests of the company and re-engineer its activities so it can take off again once this crisis is over.
Some of the airlines in African had already been struggling before the COVID-19 …
The novel coronavirus pandemic (COVID-19) has brought the skies down, even the aviation industry is not safe from the virus wrath. In this case, the African aviation industry is vulnerable, as the international body predicted earlier that, the pandemic would hurt the sector hard, as carriers.
According to information from Bloomberg, Africa’s biggest carriers, Ethiopian Airlines, South African Airways and Kenya Airways are among national airlines staring at mounting losses and the destruction of growth plans put in place before the COVID-19 outbreak.
The International Air Transport Association (IATA) said last week, African carriers may lose $4 billion in 2020 revenue as demand for travel around the continent grinds to a halt.
All three of Africa’s biggest carriers have to find a resolution to ensure amicable solutions reach as carriers “will, in some shape or form, have to enter into conversations with their respective governments about bailouts,” Mike Mabasa, chairman …
The deadly coronavirus (COVID-19) which has now spread over 60, with 93,000 cases and more than 3,000 deaths in China, is projected to hurt the African airline landscape, taking away $40 million in revenue.
At the moment, Africa has witnessed confirmed cases in Senegal, Nigeria, Egypt, Algeria, Morocco and Tunisia.
The outbreak has made big-industrial players such as British Airlines, United Airlines, Cathay Pacific to trim their routes to various destination, including northern Italy, South East Asia, to evade further trouble with the virus.
On that line, African airlines have taken their own path to curb the scenario, as Tanzania’s emerging airline halted its scheduled flights to China, Kenya’s court order made Kenya Airways postpone flights to China, and Rwanda did the same.
However, Ethiopia faced criticism for not realizing the flights’ cancellation to China, like its fellow players.
According to the International Air Transport Association (IATA), the global aviation …