African airlines lost $8.6bn in 2021, could lose another $4.9bn in 2022
An updated report by the African Airlines Association (Afraa), detailed how the COVID-19 pandemic hammered Africa’s aviation industry in 2021, resulting in an estimated $8.6 billion revenue loss.
While the figure is less than the $10.21 billion revenue loss recorded by the sector in 2020, it is still a 49.8% decline when compared to the revenue recorded by the sector prior to the pandemic in 2019.
The report blamed the revenue loss on the stringent travel restrictions placed by governments, in a bid to contain the Coronavirus. Apparently, the restrictions were well-intentioned. But they also made it impossibly for airlines to operate optimally.
As a matter of fact, the traffic volume from January through to December was 42.3% less than what was recorded in 2019.
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“Across Africa in general, passenger traffic volumes remain depressed due to the unilateral and uncoordinated travel health restrictions imposed by some governments following the outbreak of the Omicron variant of COVID-19.
“Airline revenues have remained low with many operators battling with cash-flow issues. Full-year revenue loss for 2021 is estimated at $8.6 billion, equivalent to 49.8 per cent of the 2019 revenues,” said a part of the report.
The Afraa report further noted that the ongoing political upheaval in Ethiopia also contributed to the loss because traffic volumes into the Horn of Africa country contracted, particularly between November and December last year.
Do note that during the year under review, only three African airlines were able to continue with their international routes expansion, the report said.
Lookin ahead for 2022, Afraa’s forecast show an estimated revenue loss of $4.9 billion. And this would be due to cashflow issues, the association explained.
