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Tuesday, 12 April 2022

African airlines to lose $4.7 billion

The African Airlines Association (AFRAA) has released its latest report on airline performance on the continent.

According to the report, the projected full year revenue loss for this year is estimated at $4.7 billion, equivalent to 27.3 per cent of the 2019 revenues.

Last year, African airlines  lost $8.6b revenue due to the impact of the pandemic, representing 49.8 per cent of the previous year’s revenue.

However, with the relaxation of lockdown and COVID-19 restrictions in many countries, the AFRAA reports that air traffic is expected to rise but airline  revenue remaining low with many operators battling with cash-flow issues.

The continental body said the conflict between Russia and Ukraine has triggered jet fuel price increase globally.

According to AFRAA, jet fuel price hike  is generating huge concerns and has the potential to slow down  travel recovery.

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.

Last month, AFRAA estimates that African airlines’ capacity reached 67.3 per cent compared to the same month in 2019. Similarly, traffic is estimated at 56 per cent.

The Domestic market remained bullish with the biggest share for both capacity and actual passenger carried.

Domestic demand at 46.5 per cent outperformed intra-Africa and intercontinental which remained subdued at 31.3 percent  and 22.3 percent  for intra-Africa and intercontinental.

Five African airlines continued their international routes expansion drive and had surpassed the number of international routes operated pre-COVID-19.

Ten other African airlines either re-opened suspended routes or launched new international routes. As of February 2022, African airlines had reinstated approximately 79.9 per cent of their pre-Covid international routes.

The Intra-African connectivity reached 72 per cent of the pre-COVID-19 level in February. It is estimated to increase to 75 per cent in March because of easing of anti-COVID-19 restrictions in several African countries. In Algeria, connectivity increased due to the reopening of many destinations particularly to West Africa. Ethiopian airlines, Royal Air Maroc and Egypt Air are among airlines that opened new routes to African destinations in the reporting period.

Across Africa in general, passenger traffic volumes remain depressed.

Full year revenue loss for 2022 is estimated at $4.7 billion, equivalent to 27.3 per cent  of the 2019 revenue.

Last year, African airlines lost $8.6 billion in revenues due to the impact of the pandemic, representing 49.8 per cent of 2019 revenues.

From last month travelers coming to Kenya who are vaccinated shall be exempt from the requirement of a PCR test.

All eligible un-vaccinated travelers arriving at any port of entry must be in possession of a valid COVID-19 negative PCR test certificate conducted within 72 hours before departure regardless of the route of entry.  And they shall be subjected to a rapid antigen test at their own cost of $30

Any person who tests positive on antigen RDT will be subjected to PCR test at their own cost of $50  and self-isolate. Travelers below the age of five years are exempt from these testing requirements.

In-bound fully vaccinated passengers arriving in Nigeria will no longer be required to take a pre-departure PCR COVID-19 Test.

Moreover, they will not be charged for arrival rapid antigen tests at the airport. Rules that apply to fully vaccinated adults also apply to children aged 10 – 18 years.

Travelers entering South Africa will need to show proof of vaccination or a negative PCR test not older than 72 hours. All un-vaccinated travelers arriving in South Africa who want to be vaccinated will be offered a vaccination

Other African Countries that have lifted travel restrictions include Senegal, Tanzania and Togo.

Finally, the European Council adopted an updated recommendation on the temporary restriction of non-essential travel into the EU.

Under this recommendation, member states should allow non-essential travel for persons vaccinated with an EU- or WHO-approved vaccine, recovered persons, and all persons travelling from a country on the EU list.

In spite of encouraging vaccination, the position of AFRAA remains that States should not impose mandatory vaccination as a pre-entry and exit requirement for travel, until satisfactory access to vaccines and reasonable vaccination coverage is attained.

AFRAA urges governments to remove the PCR test requirements for fully vaccinated passengers.

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