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Browsing: International Air Transport Association (IATA)
- Africa’s aviation industry lost a whopping $9 billion between 2019 and 2020.
- The Covid-19 pandemic shook the industry to the core, removing chronically inefficient but large commercial airline businesses from circulation in some countries.
- According to the World Travel and Tourism Council, the rate of commercial air transport increased by at least 23 percent in 2022 and is expected to jump by 9.5 percent this year.
At the height of the Covid-19 pandemic, a number of African economies saw their airlines fly into near collapse even as others reduced their dependence on it to power certain segments of their economies. In many countries, policymakers picked up hard lessons on how some economies heavily relied on the aviation industry to source income for other sectors such as tourism.
Africa’s aviation industry experienced phenomenal passengers and freight traffic growth of between 45 percent and 80 percent from 2010-2015, giving a ray of …
- Major African airlines have been hard hit since the Covid-19 pandemic struck.
This year is however expected to bring good tidings for the industry, albeit low profit margins.
IATA expects a return to profitability for the global airline industry in 2023, as airlines continue to cut losses stemming from the effects of the pandemic to their business in 2022.
The global aviation industry is set for a bounce back this year as airlines navigate turbulence that has shaken the industry since 2020, threatening to bring down carriers in the market.
Major African airlines have been hard hit since the Covid-19 pandemic struck.
A report by the African Airlines Association (AFRAA) indicates the pandemic hit Africa’s aviation industry in 2021, resulting in an estimated $8.6 billion loss.
While the figure was less than the $10.21 billion loss recorded by the sector in 2020, it was still a 49.8 per cent decline …
- EAC Partner States need to fast-track implementation regulations on the liberalisation of air transport
- An extra 155,000 jobs and US$1.3 billion in annual GDP would be created if 12 countries opened their skies.
- Africa has formed the Single African Air Transport Market (SAATM) to spearhead a single unified air transport market to advance the liberalization of civil aviation in Africa.
In the spirit of creating a single market and increased integration of Africa’s 54 nations, stakeholders want airlines operating within the continent to lower fares.
Recent research by the International Air Transport Association (IATA) showed that ‘if just 12 key Africa countries opened their markets and increased connectivity, an extra 155,000 jobs and US$1.3 billion in annual GDP would be created in those countries.’
These are significant figures by any measure and IATA, the trade association for the world's airlines, representing some 260 members, maintains that lowering flight prices in…
In June 2022, the International Air Transport Association (IATA) revealed that Nigeria had not handed over US$ 450 million owed to different airlines. By July 2022, the money owed to foreign airlines had risen by US$14 million to US$464 million.
The funds were generated from ticket sales but were yet to be remitted, leading to friction between Nigerian authorities and international airlines.
The Nigerian federal government attributed the mess to the foreign exchange crisis as the naira continues to weaken against the dollar. IATA asked the West African country to release the funds’ failure, to which it risks being alienated from air connectivity.…
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 …
Rwanda is the first country in Africa to fully comply with ICAO’s biosecurity recommendations.…
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Africa’s aviation could lose up to $35 billion according to data from the International Air Transport Association (IATA) compared to its previous estimates of a $28 billion decline.
This is due to the worsening of the impact of Covid-19 on Africa’s aviation industry and economies since IATA’s previous assessment in April.
According to IATA, job losses in aviation and related industries could increase by up to 3.5 million. This is more than half of Africa’s 6.2 million aviation-related employment and 400,000 more than the previous estimate.
The whole of 2020 traffic is expected to plummet by 54 per cent which is more than 80 million passenger journeys compared to last year’s estimated fall of 51 per cent.
”Covid-19 has devastated African economies and brought air connectivity across the continent to a virtual standstill. And the situation is getting worse. The economic consequences resulting from a disconnected continent are severe. Millions …