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African airlines expected to lose $8.103 bn in revenue this year

African airlines

Based on the Covid-19 impact analysis, there was a 90.3 percent year-on-year passenger traffic decline in May

African airlines are expected to lose $8.103 billion in revenue this year, according to the African Airlines Association. Based on the Covid-19 impact analysis, there was a 90.3 percent year-on-year passenger traffic decline in May. However, recovery is expected to take place in the third quarter of 2020. 

Currently, there is shortage in cargo capacity with a rising demand for medical equipment and essential goods in Africa. Muhammad Al Bakri, IATA’s Regional Vice President for Africa and the Middle East, said in an IATA report, “Airlines in Africa are struggling for survival. Air Mauritius has entered voluntary administration, South African Airways and SA Express are in business rescue, other distressed carriers have placed staff on unpaid leave or signaled their intention to cut jobs.  More airlines will follow if urgent financial relief is not provided. The economic damage of a crippled industry extends far beyond the sector itself.  Aviation in Africa supports 6.2 million jobs and $56 billion in GDP. Sector failure is not an option, more governments need to step up.”

African governments have been urged to consider a bailout and stimulus package against the anticipated revenue losses, media reports said. The African Airlines Association is closely working with the aviation industry organisations to ensure that Africa civil aviation industry has the capacity for strong recovery in a post-pandemic world. 

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