African airlines are experiencing enhanced revenue performance, following a growth in traffic. AFRAA’s estimate shows operating revenue for March 2024 at US$ 1.74 billion, a significant increase from US$ 1.39 billion in March 2023, marking a 26% growth.
- •Africa witnessed a 6% increase in available seats, rising from 15.1 million in May 2023 to 15.9 million in May 2024, attributed to by the introduction of new routes and increased flight frequencies.
- •During the same period, ASKs (Available Seat Kilometers) surpassed May 2023 levels by 12%.
- •African carriers accounted for 48.7% of the international capacity and 35.4% of the intercontinental capacity.
Regarding capacity allocation between African and non-African operators on International routes (regional and intercontinental), AFRAA estimates a split of 51.3% and 48.7%, respectively. However, in regards to intercontinental routes, Africa accounts for only 35.4% of capacity, with non-African operators holding the majority share at 64.6%.
“In this season, intra-Africa connectivity surged across regions, with major hubs such as Addis Ababa, Nairobi, Abidjan, and Lome witnessing a notable uptick in connectivity,” reads an AFRAA report.
AFRAA projects a 15% rise in passenger traffic for African carriers in 2024 compared to 2023.
In Kenya, the Kenya Civil Aviation Authority (KCAA) is leading efforts to validate draft aviation regulations aimed at enhancing safety and efficiency, with active stakeholder consultation. However, the Kenyan government’s proposed Finance Bill 2024, which includes VAT on aviation equipment and supplies, is causing concern as it deviates from global best practices where aviation is typically VAT-exempt.
See Also: