Follow Us on Google
The International Air Transport Association (IATA) says falling business confidence in some of Africa’s key economies had led to a decline in passenger demand or patronage for most of the continent’s local airlines.
In Nigeria, like in many other African states, a myriad of factors such as insufficient power supply; high interest rate; unfavourable economic climate;financial problems;unclear economic laws; unfavourable political climate; insufficient demand; and access to credit, are some of the major factors constraining business activities with dire impact on the continent’s aviation industry.
IATA which released the global passenger traffic results for March 2019 said although the passenger patronage of African airlines’ reflected a decline from a 2.5 per cent rise in February 2019 to 2.1 per cent in March 2019. The upward traffic trend in Africa has softened since mid-2018 in line with falling business confidence in some of the region’s key economies,” said IATA’s CEO, Mr. Alexandre de Juniac.
The IATA’s global passenger traffic report for March 2019 showed that demand (measured in revenue passenger kilometers, or RPKs) rose by 3.1 per cent, compared to the same month a year ago, which it noted was the slowest pace for any month in the past nine years.
IATA said its latest analysis of demand for air passenger travel is based on data collected by airlines worldwide and by region, during March 2019.
“While traffic growth slowed considerably in March, we do not see the month as a bellwether for the rest of 2019. Nevertheless, the economic backdrop has become somewhat less favourable, with the IMF having recently revised its GDP outlook downward for a fourth time in the past year,” added, IATA’s Director General and CEO, Alexandre de Juniac.
