African airlines forecast to lose $3.5 billion in 2022

The African Airlines Association (AFRAA) has estimated a revenue loss of $3.5 billion by the end of 2022.

The revenue loss is equivalent to 20% of the loss recorded during the comparable period in full-year 2019. 

Information contained in AFRAA’s latest African airlines’ performance updates also approximated an $800 million revenue loss for the fourth quarter of 2022.

More details: According to AFRAA, November traffic and airline capacity reached 85.7% and 84.2% of the 2019 level, respectively.

AFRAA further disclosed that the domestic market share has now reached 34.3% capacity and 34.3% of passengers carried, while intra-Africa passengers carried represented 30.9% and corresponding capacity at 24.8%.

It also emphasised that the intercontinental in November was 34.2 per cent and capacity was 34.8 per cent.

It stated further that African airlines’ operations on international routes have now exceeded the 2019 pre-Covid-19 level by 2.28%, adding that seven African airlines have exceeded the number of international routes they operated before the outbreak of the Covid-19 pandemic.

Aviation fuel cost: The body added that the price of Jet A1 continues the upward trend in the last month.

It put the year-to-date, global average price per barrel at $141.5, adding that the impact on global airlines’ fuel bill is estimated at $130.8 billion for the full year 2022.

Impact of COVID-19: AFRAA observed that the number of Covid-19 pandemic cases is once again on the rise in China, though the controversial Zero Covid Strategy is still in force in that country.

In Africa, AFRAA explained that the infections remained low despite the low vaccination rate of 24.6 per cent compared to the global average of 68.5%.

The AFRAA update added: “Worldwide, the number of cases has reached 630 million and 12.6 million in Africa. The recovery rate is 99.98 per cent worldwide compared to 98.01 per cent in Africa.

“The government of Uganda has extended the lockdown in the Ebola hotspots of Mubende and Kassanda by 21 more days. 55 confirmed deaths have been reported since the outbreak. So far, no travel advisories on the outbreak.

“Airlines are however advised to exercise caution and report any passengers showing signs of the Ebola virus to the health authorities for further investigations.

Source: norvanreports.com