African airlines experience significant growth driven by rising passenger demand

In August 2024, African airlines reported a 10.1% increase in international passenger demand compared to August 2023. This reflects robust growth in the region’s aviation sector and underscores a sustained recovery along with increasing confidence among international travelers.

More African airlines flights operating closer to full capacity

According to the August 2024 report on global passenger demand issued by the International Air Transport Association (IATA), there was positive growth on three levels.

Firstly, the capacity of African airlines increased by 7.3% year-on-year, demonstrating the region’s efforts to accommodate more travellers. Also, it indicates the expansion of flight offerings to meet the growing demand, as reported by Nairametrics.

Secondly, the load factor for African airlines increased to 77.8%. This shows that airlines are using their available seats more effectively, as more flights are running at nearly full capacity.

Lastly, African airlines saw a 10.1% year-on-year increase in passenger demand.

Overall positive growth in aviation sector

The IATA report further highlighted that other regions also recorded significant growth in August 2024. Markedly, all regions showed growth for international passenger markets in August 2024 compared to August 2023.

The IATA report reflects a strong rebound in international air travel across various regions, with African airlines making notable gains in both demand and capacity.

This positive momentum highlights the global recovery in air travel and demonstrates the aviation industry’s resilience in adapting to market conditions and travel patterns.

The data for global passenger demand showed an increase across international and domestic numbers. The total demand was up 8.6% compared to August 2023. The international demand increased by 10.6% and domestic demand by 5.6% from last year, as reported by International Airport Review.

Following are some other regions with significant year-on-year growth in demand:

• European carriers – 9.1%
• Middle Eastern carriers – 4.9%
• North American carriers – 4.3%
• Latin American airlines – 13.6%

Nigerian aviation sector under pressure

The Nigerian aviation sector is one of the most important in Africa, given its population of over 200 million. However, the sector has faced huge challenges that have led to the liquidation of about 130 airlines in the last 64 years, according to an analysis by The Whistler.

The aviation sector in Nigeria has underperformed in terms of contributing to the Gross Domestic Product. The industry is facing severe challenges including foreign exchange, jet A-1 fuel, poor infrastructure, and difficulties in acquiring aircraft due to country risk, according to Airline Operators of Nigeria.

The aviation sector has consistently faced severe challenges that have reduced the lifespan of airlines. Markedly, many domestic airlines do not last longer than five to 10 years before going out of business.