Airline Performance
Africa’s aviation industry continues to perform strongly, with increased passenger traffic and improved operational efficiency. Key drivers include expanded routes, better connectivity, and rising domestic and international travel demand.
Regarding seat availability in Global Africa, there was a notable 7% increase from 16 million seats in July 2023 to 17 million seats in July 2024. Intra-Africa routes also saw a 3% rise in seat availability during the same period, attributed to the introduction of new routes, network expansion, and fleet upgrades. ASKs for July 2024 exceeded July 2023 levels by 9%, while RPKs estimated a 1.3% increase year-over-year.
AFRAA estimates a 15% growth in passenger traffic for African airlines in 2024 compared to 2023. AFRAA predicts a capacity split of 50.1% on international routes for African carriers and 49.9% for non-African carriers. On intercontinental routes, Africa holds 37.1% of the capacity, with non-African carriers dominating with 62.9%.
Connectivity within Africa continues to expand, with major hubs like Addis Ababa, Johannesburg, Lusaka and Lomé experiencing significant increases in connections. African airlines are reporting improved passenger revenue, reflecting the overall traffic growth. AFRAA data indicates that passenger revenue in May 2024 reached US$1.66 billion, up by 4% from US$1.59 billion in April 2023.
The global price of Jet A1 continues to fluctuate from week to week. The global average jet A1 price ended the week of July 26th, 2024, down 2.1% at $98.68/bbl.
Regulatory/Industry Affairs
In its effort to enhance economic integration and regulatory harmonization, the COMESAEAC-SADC Tripartite Free Trade Area (TFTA) Agreement came into effect on July 25, 2024. This agreement involves member states representing 75% of the Tripartite’s GDP. The TFTA aims to streamline market access, reduce business costs through improved infrastructure, and foster industrial development by creating a more conducive environment for increasing productivity and competitiveness.
The recent suspension of a proposed 800% increase in navigation charges by the Nigerian Airspace Management Agency (NAMA) reflects the Nigerian government’s commitment to economic stability and public consultation before policy implementation. This move is in line with ensuring affordability and operational viability in Nigeria’s aviation sector.
Furthermore, Uganda’s collaboration with the UAE to develop a third international airport near Kidepo National Park exemplifies strategic infrastructure enhancement to boost connectivity and economic growth in the region.
The National Bank of Ethiopia’s introduction of the Foreign Exchange Directive No. FXD/01/2024 marks a significant shift towards a market-based foreign exchange rate system, aimed at increasing financial predictability and operational flexibility for businesses. This
directive is part of a broader initiative to liberalize the Ethiopian economy by facilitating easier access to foreign currency, encouraging foreign investment, and promoting economic diversification.
The above developments highlight a collective effort across multiple African nations to address infrastructural and economic challenges, enhance regional connectivity, and ensure a balanced and sustainable growth trajectory.
The OPSGROUP has convened a forum to deliberate on the safety concerns occasioned by GPS Spoofing. The OPSGROUP noted that GPS Spoofing incidences had spiked by 400% in Q1 of 2024 and there was an urgent need to bring stakeholders to discuss this concern. Topics being deliberated are: Flight Safety, Technical, Regulatory, Security, Mitigation and Solutions. In response to evolving regulatory demands and environmental sustainability goals, the Lufthansa Group has implemented an Environmental Cost Surcharge effective from January 1, 2025. This surcharge, varying from 1 euro to 72 euros, is designed to offset costs associated with the statutory blending quota for Sustainable Aviation Fuel (SAF) and adjustments to the EU Emissions Trading System (EU ETS).
The International Civil Aviation Organization (ICAO) has issued the second edition of the Global Aviation Security Plan (GASeP), reinforcing the commitment to enhancing global aviation security. This updated plan outlines strategic priorities, including enhancing security culture, technological innovation, and cooperation among aviation stakeholders, aimed at mitigating risks and improving oversight and quality assurances across global aviation operations.
In a significant legal development, the Ontario Superior Court’s ruling against Ukraine International Airlines for the downing of flight PS752 emphasizes the critical importance of risk assessment in aviation. The ruling holds the airline accountable for not adequately identifying risks, which led to tragic losses. This landmark decision underscores the imperative for airlines to rigorously assess and mitigate risks to ensure the safety of passengers and crew.
These updates highlight the ongoing global efforts within the aviation industry to address environmental impacts, enhance security measures, and uphold legal and ethical standards, ensuring a balanced and responsible approach towards global aviation practices.