According to IATA, African air carriers are expected to post losses of about $500 millions this year. It represents 5.5 per cent of the world airlines estimated losses. The economic downturn with a 13 per cent decrease in global trade contracts, combined with the loss of market share are the main contributing factors. This will certainly further weaken some of the contient' airlines, particularly in west and central africa, that are already facing disproportionate competion from major European carriers such as Air France on the Africa-France market.
But despite these dark forecast, the african market remains attractif as the continent suffered a limited impact of the financial crisis compared to elsewhere. The continental market is holding up but there is little signs of fondamental improvement in the continent' airlines prospects IATA reported. Even if some airlines like Tunisair or Ethipian are performing well. The latest is beating all time records with a 55 per cent increase of its operating revenues and a 9 per cent increase in its net profits.
Some analysts however wonder why airlines dont fly more to africa, where yields are very high, and the competition limited, instead of parking their aircraft or using them on the busy transalantic market.
But despite these dark forecast, the african market remains attractif as the continent suffered a limited impact of the financial crisis compared to elsewhere. The continental market is holding up but there is little signs of fondamental improvement in the continent' airlines prospects IATA reported. Even if some airlines like Tunisair or Ethipian are performing well. The latest is beating all time records with a 55 per cent increase of its operating revenues and a 9 per cent increase in its net profits.
Some analysts however wonder why airlines dont fly more to africa, where yields are very high, and the competition limited, instead of parking their aircraft or using them on the busy transalantic market.
Source: Future Airport, issue 2, 2009
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