The African aviation industry is showing signs of recovery with fleet size projected to grow by 25% to over 1,400 aircraft by 2034, according to Oliver Wyman’s Global Fleet and MRO Market Forecast. The largest growth is projected to occur between 2029 and 2034, with a CAGR of 2.7%. For example, South African Airways has announced plans to expand its fleet to approximately 40 aircraft over the next decade, from just 13 today. This growth reflects increasing demand, with African passenger numbers expected to nearly double by 2035, as reported by the International Air Transport Association.
But the sector faces significant hurdles in its recovery. The Covid-19 pandemic caused a six-year setback in industry growth globally, with several African airlines folding and the continent’s aviation sector losing $7.7bn in revenue in 2020 alone. Investment challenges include inflation, skilled labour shortages, and rising costs. Despite these obstacles, experts remain cautiously optimistic. André Martins of Oliver Wyman notes that easing inflation and potential interest rate reductions could facilitate crucial investments in the future.
In the second quarter of 2024, the African aviation industry continued to show resilience and growth, navigating economic challenges and seizing opportunities. Airlines across the continent sustained their recovery, driven by a steady increase in passenger demand according to the African Airlines Association (AFRAA).
The total seat availability in Global Africa saw a notable 6% increase, rising from 15 million seats in June 2023 to 16 million seats in June 2024. Intra-Africa routes experienced a modest 0.5% rise in seat availability, attributed to new route introductions, network expansions, and fleet upgrades. Additionally, Available Seat Kilometers (ASKs) for June 2024 surpassed June 2023 levels by 11%, while Revenue Passenger Kilometers (RPKs) showed a 5.8% year-over-year increase.
African carriers claimed 49.6% of international capacity and 37.0% of intercontinental capacity. The African Airlines Association (AFRAA) estimates a 15% growth in passenger traffic for African airlines in 2024 compared to 2023. On international routes, AFRAA predicts a capacity split of 49.6% for African carriers and 50.4% for non-African carriers. For intercontinental routes, African carriers hold 37.0% of the capacity, while non-African carriers dominate with 63.0%.
Connectivity within Africa continues to expand, with major hubs such as Addis Ababa, Nairobi, Abidjan, and Lomé seeing significant increases in connections. African airlines are reporting improved passenger revenue, reflecting the overall traffic growth. AFRAA data indicates that passenger revenue in April 2024 reached $1.70 billion, up 2% from $1.66 billion in April 2023. The global price of Jet A1 fuel continues to fluctuate, ending the week of June 21, 2024, up 3.2% at $103.16 per barrel.
Ethiopian Airlines was founded in 1945 and has made strides in the aviation industry, and is the 4th largest in the world in terms of serviced destinations. Beyond its operations, the airline has also been helping other African national carriers. It revived and owns a 49% stake in Malawi Airlines and a 45% stake in Zambia Airways and has announced plans to help re-launch a new airline in Mozambique. It’s planning to establish smaller regional bases in Djibouti, Chad, and Equatorial Guinea. It already operates hubs in Malawi and Togo.
The African Civil Aviation Commission (AFCAC) has developed model economic regulations aimed at harmonizing regulations across the continent. These regulations cover economic licensing for scheduled and non-scheduled air transport services and allied services such as ground handling and catering. The regulations mandate financial monitoring and operational data submission for domestic airlines, ensuring transparency and efficiency. They also provide economic oversight of airports and air navigation service providers (ANSPs), emphasizing consumer protection through passenger rights and compensation guidelines. AFCAC validated these regulations in Lomé, Togo, from June 26-28 and in Kigali, Rwanda, from July 1-3, with AFRAA submitting the proposed regulations.
A survey conducted by AFRAA in the first half of 2024 revealed that several countries have yet to fully liberalize and implement the Single African Air Transport Market (SAATM), as evidenced by the denial of Fifth Freedom Rights. AFRAA plans to coordinate with AFCAC to facilitate the granting of these freedoms. The survey also identified political goodwill and reciprocity as significant hindrances to full SAATM implementation. Additionally, certain taxes and charges increase operational costs, prompting AFRAA to advocate for necessary petitions and encourage measures such as fleet modernization, free routing airspace, and participation in carbon offset programs for environmental sustainability.
According to Airspace Africa, Namibia’s proposal to remove visa-free entry for citizens of 31 countries is expected to negatively impact tourism, business travel, and economic growth. In contrast, Angola, Botswana, Namibia, Zambia, and Zimbabwe plan to introduce a single tourist visa, similar to the Schengen visa, allowing entry to all five countries for a short period. Zambia and Zimbabwe have already started implementing the “UniVisa” for entry to both countries and short stays in Botswana.
Nigeria is launching a new e-visa system with electronic gates at major airports to streamline visa applications as per Nigeria Visa Policy 2020. Togo and São Tomé and Príncipe have signed an agreement for visa-free travel between their citizens, aiming to enhance movement and connectivity between the two West African nations.
Two studies conducted by Airbus and Boeing highlighted the need to address restrictive bilateral agreements, airline capacity challenges, and high operating costs to improve interconnectivity on the African continent. Despite Nigeria releasing almost 98% of the funds that were blocked in the country, the continent continues to grapple with blocked funds. AFRAA’s Task Force on Blocked Funds will engage with relevant government offices to facilitate the unblocking of these airline funds.
A key factor in the growth of the aviation industry on the continent is that Africa is becoming an increasingly appealing investment destination. As the population grows and the continent’s middle class expands, continental and global investors increase their trip frequency to explore opportunities. Aviation is due to be a massive beneficiary of Africa’s population and economic growth. The African aviation sector continues to demonstrate resilience and adaptability, navigating challenges and seizing opportunities for growth and connectivity across the continent.
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