Africa Airlines Association (AFRAA) projects African airlines to record $4.1 billion loss this year on the back of expensive jet fuel. This is equivalent to 23.4% of 2019 revenues.
The cost of jet fuel has hit a high of KSh148 a litre from KSh100 in January, piling pressure on airlines when the demand for flying has remained low as the industry still recovers from the effects of the global COVID-19 pandemic.
International Air Transport Association (IATA) had earlier warned that rising jet fuel prices were likely to cause airfares to increase this year, as airlines grapple with higher operating costs.
In 2021, African airlines cumulatively lost $8.6 billion in revenues due to the impact of the pandemic, representing 49.8% of 2019 earnings.