Nairobi is among the African cities that have recorded an increase in the demand for airline passengers according to African Airlines Association (AFRAA).
AFRAA said the aviation industry experienced a dynamic start to 2024 despite grappling with a multitude of challenges and opportunities.
“In this season, intra-Africa connectivity surged across regions, with major hubs such as Addis Ababa, Nairobi, Abidjan, and Lome witnessing a notable uptick in connectivity,” said the Association.
In the statement, AFRAA said Africa witnessed a 6% increase in available seats, rising from 15.1 million in May 2023 to 15.9 million in May 2024.
The Association attributed the increase to the introduction of new routes and increased flight frequencies.
“Despite ongoing post-pandemic hurdles, the airline sector sustained its recovery momentum this year, witnessing a resurgence in passenger demand. During the same period, ASKs (Available Seat Kilometers) surpassed May 2023 levels by 12%,” AFRAA said.
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Nairobi Among African Countries That Recorded Increased Surge
Additionally, AFRAA revealed that the African carriers accounted for 48.7% of the international capacity and 35.4% of the intercontinental capacity.
AFRAA projects a 15% rise in passenger traffic for African carriers in 2024 compared to 2023.
Regarding capacity allocation between African and non-African operators on international routes (regional and intercontinental), the association estimates a split of 51.3% and 48.7%, respectively.
However, in regard to intercontinental routes, Africa accounts for only 35.4% of capacity, with non-African operators holding the majority share at 64.6%.
The Association explained that African airlines are experiencing enhanced revenue performance, following the growth in traffic.
AFRAA’s estimate shows operating revenue for March 2024 at US$1.74 billion (Ksh227 billion), a significant increase from US$1.39 billion (Ksh182 billion) in March 2023, marking a 26% growth.
“Global price of Jet A1 continues to fluctuate from week to week. The global average jet A1 price ended the week of 24th May 2024 down 0.7% at $99.85/bbl,” it stated.
Regulatory & Industry Affairs
AFRAA reported that the Kenya Civil Aviation Authority (KCAA) is leading efforts to validate draft aviation regulations aimed at enhancing safety and efficiency.
However, AFRAA explained that the proposed Finance Bill 2024, which includes VAT on aviation equipment and supplies, is causing concern as it deviates from global best practices where aviation is typically VAT-exempt.
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On the other hand, the Nigerian Aviation Handling Company (NAHCO) has raised concerns over the detrimental impact of excessive airline taxes.
According to the Association, this has made Nigerian airports some of the most expensive globally for foreign airlines to operate.
AFRAA recognized Egypt strides towards establishing a sustainable aviation.
“The Egyptian Petrochemicals Holding is planning to launch the country’s first sustainable aviation fuels (SAF) production facility by 2025,” the Association noted.
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