Africa’s Airlines: 15% Projected Passenger Traffic Growth in 2024
Estimated 26% rise in operating revenue, reaching US$1.74 Bn in March 2024.
Photo/AFRVIATOR
The African aviation industry is experiencing a robust recovery in 2024, according to the latest report from the African Airlines Association (AFRAA).
Despite ongoing post-pandemic hurdles, the sector witnessed a resurgence in passenger traffic, driven by increased capacity and strong demand.
African Airlines’ Performance May 2024
- Capacity Growth: Available seats in Africa rose by 6% year-over-year in May 2024, reaching 15.9 million, fueled by new routes and more frequent flights.
- Passenger Traffic Up: AFRAA projects a 15% increase in passenger traffic for African carriers in 2024 compared to 2023.
- Strong Intra-Africa Connectivity: Intra-regional connectivity witnessed a surge, with major hubs like Addis Ababa, Nairobi, Abidjan, and Lome experiencing significant growth.
- Intercontinental routes, Africa accounts for only 35.4% of capacity, with non-African operators holding the majority share at 64.6%.
- Revenue Rise: African airlines are benefiting from the traffic surge, with operating revenue in March 2024 estimated at US$1.74 billion, a 26% increase from the previous year ( US$1.39 Bn in March 2023).
Challenges Remain
- Jet Fuel Prices: The global price of Jet A1 fuel remains volatile, impacting airline profitability.
- Excessive Taxes: NAHCO, the Nigerian Aviation Handling Company, raised concerns about high airline taxes in Nigeria, making airports less competitive.
- VAT on Aviation Supplies: Kenya’s proposed Finance Bill 2024, which includes VAT on aviation equipment and supplies, is seen as a deviation from global best practices.
- Kenya Prioritizes Safety: The Kenya Civil Aviation Authority (KCAA) is working on validating draft aviation regulations to enhance safety and efficiency. However, the proposed VAT on aviation equipment and supplies is a point of contention.
Sustainability Efforts
- Egypt’s Green Push: The Egyptian Petrochemicals Holding Company plans to launch the country’s first sustainable aviation fuel (SAF) production facility by 2025.
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