African airlines record N1.6tr losses in 2020-2022 – IATA

The International Air Transport Association (IATA) yesterday said the continent’s carriers suffered cumulative losses of $3.5 billion (N1.6 trillion) for 2020-2022 and  it estimates further losses of $213 million in 2023.

“Africa accounts for 18% of the global population, but just 2.1% of air transport activities (combined cargo and passenger). Closing that gap, so that Africa can benefit from the connectivity, jobs and growth that aviation enables, is what Focus Africa is all about,” said IATA’s Director General, Willie Walsh in an emailed statement to our correspondent yesterday.

The association also disclosed it would launch “Focus Africa” to strengthen aviation’s contribution to Africa’s economic and social development and improve connectivity, safety and reliability for passengers and shippers.

This initiative will align private and public stakeholders to deliver measurable progress in six areas following the continued losses suffered by African carriers.

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It highlighted infrastructure constraints, high costs, lack of connectivity, regulatory impediments, slow adoption of global standards and skills shortages as challenges affecting the customer experience which are all contributory factors to African airlines’ viability and sustainability.

According to IATA, sustainably connecting the African continent internally and to global markets with air transport is critical for bringing people together and creating economic and social development opportunities.

“It will also support the realisation of the UN’s Sustainable Development Goals (UN SDGs) for Africa of lifting 50 million people out of poverty by 2030.

“In particular, trade and tourism rely on aviation and have immense unrealised potential to create jobs, alleviate poverty, and generate prosperity across the continent.

Africa has a solid foundation to support the case for improving aviation’s contribution to its development. 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,” the association said.

It listed six critical areas to focus on including safety, infrastructure, connectivity, finance and distribution and sustainability.

“The limiting factors on Africa’s aviation sector are fixable. The potential for growth is clear. And the economic boost that a more successful African aviation sector will deliver has been witnessed in many economies already. With Focus Africa, stakeholders are uniting to deliver on six critical focus areas that will make a positive difference. We’ll measure success and will need to hold each other accountable for the results,” said Walsh.

It stressed the need to improve operational safety through a data driven, collaborative program to reduce safety incidents and accidents, in the air and on the ground.

It added that Africa must facilitate the growth of efficient, secure, and cost-effective aviation infrastructure to improve customer experience and operational efficiency while promoting the liberalization of intra-African market access through the Single African Air Transport Market (SAATM).

“Africa stands out as the region with the greatest potential and opportunity for aviation. The Focus Africa initiative renews IATA’s commitment to supporting aviation on the continent. As the incoming chair of the IATA Board of Governors, and the first from Africa since 1993, I look forward to ensuring that this initiative gets off to a great start and delivers measurable benefits,” said Yvonne Makolo, CEO of RwandAir and first female Chair of the IATA Board of Governors (2023-2024).