African carriers suffered cumulative losses of $3.5 billion in 2020-2022, the period of the global COVID-19 pandemic and travel restrictions
According to the International Air Transport Association (IATA), Africa’s civil aviation sector had been losing money for nearly thirteen years now.
Based on IATA’s own calculations, airline industry’s slump on African continent has lasted for way over a decade, with Africa’s air carriers last making profits in 2010.
The statistics released by the IATA last week, suggested that African carriers suffered cumulative losses of $3.5 billion in 2020-2022, the period of the global COVID-19 pandemic and worldwide travel restrictions. Further losses of $213 million in the current year have also been predicted.
High airline operating costs, including aviation fuel and energy, regulatory barriers, slow adoption of global standards and a shortage of skilled crew and staff have been named as the main factors affecting the African air carriers’ performance.
The numbers were released concurrently with the IATA launching a “Focus Africa” initiative to support the civil aviation industry on the continent.
According to independent aviation analysts, jet fuel is 12% more expensive in Africa than in other regions, as only very small amounts are refined on the continent, and transportation costs are high.
Jet fuel accounts for more than 30% of African carriers’ expenses, the experts say.
The IATA said last week it expected air travel in Africa to make a full recovery from the pandemic in 2024, as passenger travel already stands at 93% of 2019 levels.
The International Air Transport Association (IATA) is a trade association of the world’s airlines founded in 1945. IATA has been described as a cartel since, in addition to setting technical standards for airlines, IATA also organized tariff conferences that served as a forum for price fixing.
Consisting in 2023 of 300 airlines, primarily major carriers, representing 117 countries, the IATA’s member airlines account for carrying approximately 83% of total available seat miles air traffic. IATA supports airline activity and helps formulate industry policy and standards. It is headquartered in Montreal, Canada with executive offices in Geneva, Switzerland.
