By Chinelo Obogo
The African Airlines Association (AFRAA) has released its performance report for July 2024, highlighting a resilient period for the continent’s aviation sector and revealing a seven per cent surge in seat availability.
In terms of passenger traffic and capacity expansion, the association said the industry has witnessed substantial growth, increased route options, improved connectivity, and a surge in both domestic and international travel demand. Seat availability across the African continent expanded by seven per cent compared to the same period in 2023, reaching 17 million seats in July 2024. Intra-Africa routes also saw a three per cent uptick in seat availability, fueled by new route introductions, network expansions, and fleet modernization efforts.
The Available Seat Kilometers (ASKs) for July 2024 surged by 9 per cent year-over-year, indicating a significant increase in capacity, while the Revenue Passenger Kilometers (RPKs), a measure of actual passenger traffic, rose by 1.3 per cent during the same period, demonstrating a positive trend in passenger demand.
AFRAA says it forecasts a 15 per cent growth in passenger traffic for African airlines throughout 2024 compared to the previous year. The association also predicts a balanced capacity split on international routes, with African carriers claiming 50.1 per cent of the market and non-African carriers holding 49.9 per cent. However, on intercontinental routes, the dominance of non-African carriers is evident, with a 62.9 per cent market share compared to Africa’s 37.1 per cent.
In terms of connectivity and revenue, Africa’s aviation hub network continues to expand, with major airports in Addis Ababa, Johannesburg, Lusaka, and Lomé experiencing significant growth in connectivity. This enhanced connectivity has positively impacted passenger revenue, which climbed to US$1.66 billion in May 2024, representing a 4 per cent increase from the previous month.
For fuel costs, while the aviation industry is experiencing growth, challenges persist as the global price of jet A1 remains volatile. At the end of July 2024, the average price stood at $98.68 per barrel, marking a 2.1 per cent decrease compared to the previous week. Overall, the association said the African aviation industry is demonstrating resilience and growth, with positive indicators across key performance metrics. However, industry stakeholders must continue to navigate challenges such as fuel price fluctuations to sustain this upward trajectory.
“Regarding seat availability in Global Africa, there was a notable 7 per cent increase from 16 million seats in July 2023 to 17 million seats in July 2024. Intra-Africa routes also saw a 3 per cent 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 per cent, while RPKs estimated a 1.3 per cent increase year-over-year.
“AFRAA estimates a 15 per cent growth in passenger traffic for African airlines in 2024 compared to 2023. AFRAA predicts a capacity split of 50.1 per cent on international routes for African carriers and 49.9 per cent for non-African carriers. On intercontinental routes, Africa holds 37.1 per cent of the capacity, with non-African carriers dominating with 62.9 per cent. 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 per cent from US$1.59 billion in April 2023,” the report stated.