African airlines worry over rising jet fuel prices, high fares

The African Airlines Association (AFRAA), the umbrella body representing many of the continent’s airlines jet fuel prices are rising, reaching $123.46 as of the end of October 2023.

This trend of high fuel costs according to the body impacts fares and hinders air transport affordability for African citizens.

AFRAA stated this at its Annual General Meeting (AGM) in Kampala, Uganda at the weekend.

Mr. Abdérahmane Berthé, AFRAA Secretary General, expressed the commitment and determination of AFRAA to overcome the challenges facing the air transport industry, to support the post-COVID resumption, and to foster a resilient Air Transport system in Africa.

“As our industry has almost recovered from the COVID-19 pandemic, it provides an opportunity for cooperation and collaboration to develop a sustainable perspective for the airline industry. At AFRAA, we will keep our mission to promote and serve African airlines and champion Africa’s aviation industry,” he stated

He further stated that better skies for Africa remain the pillar of all our actions.

Nigeria has one of the most robust domestic aviation sectors in Africa, with over 10 active scheduled carriers connecting several destinations within the country’s borders.

In 2022, about 16.1 million passengers flew through Nigerian airports with 78.2% of all traffic being served by domestic carriers.

Airlines have increased ticket prices to cover the cost of operations but have not entirely put it on consumers. Foreign operators have also increased the price of tickets.

During the weekend, the IATA Rate of Exchange (IRoE) increased in one leap by ₦139 from ₦842 to ₦981 against the US dollar.

While African carriers face several operational challenges, carriers face several operational challenges the price of aviation fuel is among the biggest.

It accounts for over a third of all costs. As a deregulated commodity exclusively controlled by suppliers, the price consistently fluctuates according to the rate of the Naira against the dollar.

On airline performance, the group stated that the average Passenger Load Factor recorded in Africa for 2022 was 71.6%, a 10.6% increase compared to 2021.

However, this is 7% less than the global average. The mismatch between capacity and demand and the limited commercial cooperation between local carriers it stated may explain this low performance in terms of load factor in Africa.

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In terms of passengers carried, during the 3^rd quarter of 2023, African airlines reached the number of RPKs for the same period in 2019. AFRAA estimates the number of passengers in 2023 to be 85 million, 89% of the 95.6 million in 2019.

Notably, in 2023, Northern Africa accounts for 39.5% of the total African traffic, followed by Central and West Africa at 21.7%, Southern Africa at 19.4% and Eastern Africa at 19.3.

AFRAA listed its priority for 2024 to include Safety First connectivity and route development, air transport sustainability, and a five-year strategic plan.

“The African continent must focus on aviation as a critical socio-economic development driver.
Cooperation, Collaboration, and joint industry actions are essential in this process. AFRAA intends to play a pivotal role in navigating African airlines by charting a sustainable path in support of rejuvenating the continent’s aviation industry through specific support measures.” Berthé emphasized.

On airline performance, the average Passenger Load Factor recorded in Africa for 2022 was 71.6%, a 10.6% increase compared to 2021.

However, this is 7% less than the global average. The mismatch between capacity and demand and the limited commercial cooperation between local carriers may explain this low performance in terms of load factor in Africa.

In terms of passengers carried, during the 3^rd quarter of 2023, African airlines reached the number of RPKs for the same period in 2019.

AFRAA estimates the number of passengers in 2023 to be 85 million, 89% of the 95.6 million in 2019. Notably, in 2023, Northern Africa accounts for 39.5% of the total African traffic, followed by Central and West Africa at 21.7%, Southern Africa at 19.4% and Eastern Africa at 19.3

Wole Shadare