Business

IATA reports that the aviation industry has not fully recovered from pandemic losses

The International Air Transport Association (IATA) reported that the global aviation sector is still recovering from pandemic-induced losses. In Africa, the aviation industry incurred an estimated $7.7 billion in losses in 2020 due to COVID-19-related restrictions, leading to reduced air traffic. Specifically, Nigeria faced monthly losses of about N21 billion during the outbreak. Analysts project that it will take until 2024 for the aviation sector to fully recover and return to 2019 levels. Kamil Alawadhi, AITA’s Regional Vice-President for Africa and the Middle East, cautioned governments against viewing the aviation sector as a source of immediate revenue, emphasizing the need to support its growth potential.

He mentioned, "The aviation industry in Africa is still recuperating from substantial losses caused by the pandemic."

To compensate for this deficit, governments should refrain from imposing increased fees, levies, carbon taxes, or new taxes on air transport, trade, or tourism.

"Implementing such measures would only elevate air travel costs and diminish accessibility in Africa, where the average airfare is already 30% higher than the industry average, and jet fuel costs are 10-20% higher than the global average," the statement emphasized.

As the sector undergoes recovery, increased costs will dissuade price-sensitive customers, impacting revenue, according to him.

“These elevated costs would hinder economic development, restrict opportunities for job creation and income generation. High costs result in higher prices, diminishing demand and growth in a price-sensitive market, ultimately adversely affecting connectivity.”

He recommended that governments adhere to the International Civil Aviation Organisation's policies on charges and infrastructure, consulting with airlines and the industry to establish a fair and cost-effective operational environment that enhances connectivity across the continent.

Leave A Comment