adminAFRICAN airlines continue to suffer because of high costs and are projected to show a loss of US$200 million (about R2,9bn) next year, similar to the loss expected for 2019, according to the International Air Transport Association.
The industry body said this is largely owing to government taxes and fees, as well as low load factors. Furthermore, aviation markets in Africa are seen as “very fragmented and inefficiently served in the absence, so far, of a single African air transport market”, according to IATA. Data recently released by IATA showed that African carriers posted the fastest cargo growth of any region in October 2019, with an increase in demand of 12.6 percent compared to the same period a year earlier.
Strong trade and investment links with Asia contributed to the positive performance. Freight volumes on key Africa-Asia routes were up 23 percent annually in September, according to the latest available data.
Chris Zweigenthal, CEO of the Airlines Association of Southern Africa (AASA), has said South Africa’s domestic air transport market is one of the most robustly competitive in Africa, with local carriers engaged in fierce competition. Against the backdrop of South African Airways recently having been placed in business rescue, Zweigenthal said AASA would like the business rescue scenario to give the aviation and related industries a chance to adjust and adapt – ensuring that those they serve are provided with sustainable, competitive, capable, reliable and safe services.
Online Reporter