Air Cargo and Passenger Demand Up, African Airlines Set for a Small Profit in 2024
International Air Transport Association (IATA)
Flying is the Business of Freedom #FlySafe #WeAreAviation
Welcome back! It's official: we're now more than 51% of the way through 2024. Let's get to it.
African Airlines Set for a Small Profit in 2024
IATA is calling on Africa’s governments to take advantage of a strengthening aviation sector to maximize its benefits for economic and social development across the African Continent.
Recently, IATA announced Africa’s airlines are expected to earn a collective net profit in 2024 for the second year in a row. That is a welcome and hard-won result reflecting the sector’s resilience in its post-COVID recovery.
The expected $100 million profit, however, translates into just 90 cents per passenger—well below the global average of $6.14.
“Africa’s airlines are making a collective profit. That is good news. But it is razor-thin and well below the global benchmark. And there are wide variations across the continent where many individual airlines still struggle with losses. The demand to travel is there. To meet it, the African airline sector needs to overcome many challenges, not least of which are infrastructure deficiencies, high costs, onerous taxation, and the failure to broadly implement a continent-wide multilateral traffic rights regime,” said Kamil Alawadhi, IATA’s Regional Vice President for Africa and the Middle East.
Learn more about harnessing aviation for economic growth, the 2024 financial outlook and Focus Africa priorities.
RELATED: IATA Urges South Africa's Government to Leverage Aviation for Economic Growth & Job Creation
Strong Air Cargo Demand Continues in May
Newly released data for May 2024 global air cargo markets show continuing strong annual growth in demand.
Total demand, measured in cargo tonne-kilometers (CTKs), rose by 14.7% compared to May 2023 levels (15.5% for international operations). This is the sixth consecutive month of double-digit year-on-year growth.
Willie Walsh, IATA's Director General:
"Air cargo demand moved sharply upwards in May across all regions. The sector benefitted from trade growth, booming e-commerce and capacity constraints on maritime shipping. The outlook remains largely positive with purchasing managers showing expectations for future growth."
Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 6.7% compared to May 2023 (10.2% for international operations).
While Asia-Pacific airlines?saw 17.8% year-on-year demand growth for air cargo in May, African airlines?saw an 18.4% increase – the strongest of all regions.
Read more about May cargo numbers:
Passenger Demand Up 10.7% in May
Meanwhile, data for May 2024 global passenger demand had the following highlights:
Total demand, measured in revenue passenger kilometers (RPKs), was up 10.7% compared to May 2023. Total capacity, measured in available seat kilometers (ASK), was up 8.5% year-on-year. The May load factor was 83.4% (+1.7ppt compared to May 2023), a record high for May.
International demand rose 14.6% compared to May 2023. Capacity was up 14.1% year-on-year and the load factor improved to 82.8% (+0.3ppt on May 2023).
领英推荐
Domestic demand rose 4.7% compared to May 2023; capacity was up 0.1% year-on-year and the load factor was 84.5% (+3.8ppt compared to May 2023).
All regions showed strong growth for international passenger markets in May 2024 compared to May 2023. The load factor increased in all regions except North America.
Asia-Pacific airlines continue to lead the way, with a 27.0% year-on-year increase in?demand.
Read more about May passenger numbers:
News in Brief
Welcome Madagascar Airlines!
Congratulations Madagascar Airlines on joining IATA's airline membership!
Based in Antananarivo, it is the flag carrier of Madagascar operating to Europe, Asia, and neighboring African and Indian Ocean island destinations, from its main base, Ivato International Airport.
It also operates an extensive domestic network.
Chart of the Week: The Dominance of Narrowbody Jets in Airline Operations
Airlines use a variety of aircraft types depending on their business model and markets.
Smaller equipment such as turboprops and regional jets are the most used types on shorter and domestic routes, while widebody jets dominate the long-haul international routes.
Narrowbody jets, on the other hand, are increasingly suited for a wide range of operations and are the most common aircraft type currently in the industry.
Narrowbody aircrafts benefitting from the latest technological improvements have become a key asset for airlines in reaching sustainability, noise, and financial targets, while accommodating rising demand for air travel.
Learn more about the #WeeklyChart and the dominance of narrowbody jets in airline operations.
Thanks for reading! Safe travels and please consider sharing this newsletter.
licensed aircraft maintenance engineer
7 个月Looking at case no 17163946 from an African country. The unprofessional conduct of some of IATA members protecting the interests of some ATC partners over those coming up is not called for particularly in case no. 17163946 declined with no clear reason yet it is meant to build capacity
--
8 个月how are you , I am yilma wondimu . am gradute bi building constraction , 8 year work exprince bi building constraction and maintenace . I am part timely work on problems of works and solution . can I get any work ? I have also proposal on work problem soultions thank you ?
Senior Associate Business Analysis
8 个月I agree! Nnn g
Manager Export Operation
8 个月I'll keep this in mindvbbnbbv;vnm
Founder, President at AUDIT Air Inc.
8 个月Good to know!