Performance of African Airlines Exceeds Pre-COVID Levels

By Jean Pierre Afadhali The total number of intercontinental routes operated by African airlines exceeded pre-COVID levels since October 2022, signaling a recovery from the loss occasioned by a halt of nearly all global airlines traffic to curb the deadly virus. Recent data released by the African Airlines Association, also known by its acronym AFRAA, a trade association of airlines from the member states of the African Union (AU) show in August 2023, traffic carried by African airlines reached 98.4% of the 2019 level. Domestic market share was estimated at 34%, intra-Africa at 29%, and intercontinental at 37%. According to AFRAA, in some major airports such as Johannesburg, Nairobi, Addis Ababa, Lusaka, Cairo, Casablanca, Abidjan, and Lomé, intra-Africa connectivity has reached or exceeded pre-Covid level since December 2022. Data from the trade association of airlines reveals 2023 is witnessing a narrowing of the airline revenue gap attributed to Covid-19 compared to 2022. “In the first 3 months of the year, African airlines missed the levels attained in a similar period in 2019 by US$0.3 billion,” AFRAA noted in a press release adding it is expected to further narrow in the second quarter to US$0.2 billion. AFRAA stated though full-year estimated revenue gap is yet to be computed, it appears 2023 would be a better year compared to the prior year.  “The 2022 full-year cumulative airlines revenue gap was US$3.5 billion for all African airlines compared to 2019,” the continent’s trade association of airline said. Blocked Funds challenge Meanwhile Airlines continue to face funds blockage challenges according to trade association African airlines. Total blocked funds reported by six (6) airlines in Fifteen (15) countries (13 in Africa and 2 outside Africa) is approximately US$339.1 million at the end of March 2023. AFRAA says it has requested meetings with some central bank Governors and will soon meet them to agree on a solution to” this recurrent problem as part of engagements to have the funds released.” AFRAA said that the price of Jet A1, a kerosene-type fuel that is compatible with most jet aircraft, continues the upward trend, going up by over $22 in one month. The global weekly average jet fuel price during the week ending 25 August 2023 was up 2.9% at $126.37/bbl. In July, the average weekly price was $103.64/bbl. Pre-COVID aviation supported 7.7 million jobs and $63 billion in economic activity in Africa. Projections are for demand to triple over the next two decades, noted the International Air Transportation Association in April this year. The Air Transportation body said at the time “Africa stands out as the region with the greatest potential and opportunity for aviation.”