African airlines’ revenues and seat numbers hit new highs in 2024

• African airlines revenues for January 2024 was $ 1.83 billion compared to $1.56 billion in November, 2023
• Available seat per kilometre (ASKs) also exceeded the level of March 2019 by 7.7per cent.
• Open skies will boost intra-African connectivity, drive down airfares.

Investments among the continents carriers have begun to pay off as African Airlines Revenues and seat numbers hit record high, a new report by African Airline Association (AFRAA) has shown.

The number of airline seats offered in the region has increased by 12.6per cent, to 16.1 million in March 2024, thanks to new routes and flight frequencies.

The industry has for the first time in four years surpassed pre codid-19 monthly figures of 14.3 million recorded in March 2019.

The year 2024 is shaping up to be a significant year of recovery for the aviation industry as Airlines have not only regained their pre-Covid levels of capacity and traffic but have also surpassed them, marking a notable turnaround.

For Kenyas national carrier has in the past three months re-introduced flights to Somalia, UAE and increased its frequencies for the New York route.

“African carriers accounted for 49.5per cent of the international capacity and 35.9per cent of the intercontinental capacity. AFRAA estimates that passenger traffic carried by African operators in 2024 will be about 98 million,” the association said in the monthly update.

Over the same period, Available seat per kilometre (ASKs) also exceeded the level of March 2019 by 7.7per cent.

Available seat per kilometre measures the airlines flight passenger carrying capacity. It is the total number of available seats multiplies by the number of kilometres travelled.

In terms of capacity split between African and non-African operators on both regional and intercontinental routes, AFRAA estimate a 50.7per cent and 49.3per cent respectively.

A further disaggregation of capacity on only the intercontinental routes reveals a much lower share of 35.7per cent for Africa as against 64.3per cent for non-African operators.

Though continent-wide intra-African connectivity exceeded pre-Covid level since December 2022, major hubs like Johannesburg and Casablanca are yet to reach 2019 levels.

Similar to traffic growth, African airlines are also seeing improved revenue performance.

African Airlines Revenues

AFRAA estimated revenue for January 2024 was US$ 1.83 billion compared to US$1.56 billion in November, 2023 indicating a revenue growth of 14.75per cent.

Global price of Jet A1 continues to fluctuate from week to week. The global average jet A1 price ended the week of 22^nd March 2024 up 1.1per cent at $109.08/bbl.

ATNS in South Africa implemented the revised Air Traffic Service Charges, effective May 1, 2024. These charges were reviewed and approved by the regulator.

A proposed $20 per passenger fee at Kotoka International Airport (KIA) in Accra, Ghana to cover airport maintenance works and baggage belt repairs, without following due process attracted condemnation by operators and the industry.

Regulatory/Industry Affairs

While there is a need for investment in infrastructure to meet growing demand, AFRAA advocates strict adherence by all service providers to the stipulated ICAO principles contained in DOC9082.  Following intervention by the parliament of Ghana, levying of the proposed fee has been suspended.

Airplanes Africa Limited’s (AAL) has achieved a commendable feat by assembling the first Skyleader 600 aircraft in Tanzania. This could mark the beginning of Africa’s venture into aircraft assembly and components manufacture.

Uganda has reaffirmed its commitment to signing the Single African Air Transport Market (SAATM) solemn commitment. If done, this will bring to 39 the African State that have committed to opening up their markets.

Similarly, internal discussions are ongoing in Tanzania on their commitment to SAATM. If the 2 countries join, EAC will boast a big domestic market for air travel.

Open skies will boost intra-African connectivity, drive down airfares, and stimulate air traffic and revenue growth across the continent as well as create jobs.

Read Also: Hope as Africa’s Aviation sector shows signs of positive growth

Sierra Leone CAA’s Consumer Protection Unit has reached out to her ECOWAS partners in the Consumer Protection industry to harmonies the positions to safeguard the sub-region consumer interest in civil aviation.

Striking a balance between protecting passenger rights and ensuring sustainable air services is crucial for a healthy aviation industry.

Ecuador has made positive strides with a new Tourism Law which eliminates currency repatriation tax and to reduce the 5per cent jet-fuel tax by 1per cent annually over the next 5 years.

The African Continent can emulate this gradual tax reduction model of Ecuador to reduce some of the burdensome taxes that are hampering aviation development on the continent.

ICAO and the Aviation Working Group (AWG) are collaborating to enhance cross-border aircraft transferability by promoting compliance with the Cape Town Convention. This will improve efficiency and safety in the aircraft leasing and financing sector and AFRAA commends the 2 organisations for the initiative.