Outlook for the African Airlines

As with IATA’s financial forecast for the Middle East, the organisation’s estimates for Africa also make for grim reading. It found the continent’s airlines could lose $6 billion of passenger revenue compared to 2019, which is $2bn more than was predicted at the start of April.

Al Bakri said: “Airlines in Africa are struggling for survival. Air Mauritius has entered voluntary administration, South African Airways and SA Express are in business rescue, other distressed carriers have placed staff on unpaid leave or signaled their intention to cut jobs. More airlines will follow if urgent financial relief is not provided.”

Air Mauritius was placed into administration last week as the ongoing travel restrictions made it impossible for the airline to meet its financial obligations for “the foreseeable future.” The airline had already suspended services until May 15.

IATA research also found that job losses in aviation and related industries could grow to 3.1 million—half of Africa’s 6.2 million aviation-related employment. Full-year 2020 traffic is expected to plummet by 51% compared to 2019.

It said South Africa would be hardest hit, with 14.5 million fewer passengers this year resulting in a $3.02 billion revenue loss. Nigeria will also suffer a passenger drop of about 4.7 million, while in Kenya the total will be down by about 3.5 million.