African airlines projects $4.7billion revenue loss
African airline operators under the aegis of the African Airlines Association (AFRAA) have projected a $4.7billion loss in revenue for the year. This is contained in the Association’s latest report on airline performance on the continent.
According to the report, the revenue loss represents 27.3 per cent of the 2019 revenues.
It should e recalled that last year; Association reported a loss of $8.6 billion revenue, representing 49.8 per cent of the previous year’s revenue. The loss then was occasioned by the COVID 19 pandemic that had serious negative impact on global transportation as most countries were under lockdowns.
With the relaxation of lockdown and COVID-19 restrictions in many countries however, it is expected that air traffic will rise thereby improving the revenue of the airlines.
The Russia-Ukraine war has however triggered a spike in aviation fuel price globally and responsible for the sharp drop in revenue of airline operators.
Industry estimates project the impact of the price increase on the overall jet fuel bill will reach $86.3 billion based on an estimated average price of $115 per barrel.
According to AFRAA, jet fuel price hike is a huge concern for players and has the potential to slow down travel recovery.
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