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How COVID-19 Led to $8.6 Billion Loss for African Airlines in 2021

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Omicron

The report which shows how the COVID-19 Pandemic led to an $8.6b loss for African Airlines in 2021, also projects another loss of  $4.9 billion in 2022

The report compiled by African Airlines Association (Afraa) and obtained by Investors King reveals how strict travel restrictions by many African countries led to the depletion in revenue of most airlines in 2021.

The pandemic was a major determining factor for the progression of many sectors of the economy in 2021. And while for many, losses were accounted due to the novel COVID-19 virus, experts in the aviation sector believe that less stringent travel restrictions in 2021 would have reduced the losses incurred by many African airlines.

The pandemic heightened losses for many sectors in 2020 and by 2021, a number of these sectors were said to be slowly recovering from their losses. And although the $8.6b loss according to Afraa, is a little less than the $10.21 billion revenue loss recorded by 2020, the result still shows a 49.8% decline when compared to the revenue recorded by the sector prior to the pandemic in 2019.

Investors King also collected that the report by AFraa disclosed that while a loss of $8.6 billion was incurred in 2021, in 2022, another loss of  $4.9 billion may be incurred in 2022 owing to stricter travel restrictions and an ongoing crisis in Ethiopia.

The political crisis in Ethiopia may appear to have an even more devastating effect in the Eastern African region. According to the report, in 2021, only three African airlines continued with their international routes expansion across Ethiopia.

Other key takeaways from the report are the report on traffic for Africa Airlines and its projection as well as the report on safety practices for African Airlines under the year in review.

Traffic Projection

The report established that the pandemic reduced the traffic demands in 2020 and 2021, while also projecting a rise to meet the levels of 2019 before the pandemic. According to the report African airlines carried an estimated 43 million passengers in 2021 which represent around 45% of 2019 traffic while also projecting a rise in traffic by 67 million passengers in 2022

African Airlines Safety

The report went ahead to reveal that the total number of fatal accidents involving commercial airlines in 2020 were 5 – of which resulted in 301 fatalities. This is a welcomed improvement when compared to 2019, where there were 8 fatal accidents with 249 fatalities. According to the report, these accidents are notably from airline fatal accident records outside Africa, as no fatal accidents occurred in the African region or involved African regular carriers.

The report commended many African governments and aviation stakeholders for their efforts in ensuring that safety measures are carried out by various airlines operating in the regions. According to the report, under the year in review, there are 43 airlines registered in the (International Air Transport Association ) IATA Operational Safety Audit (IOSA).

Owing to the incurred loss in revenue, The AFRAA Secretariat continues to advocate for financial support to African airlines owing to the critical effect of the COVID-19. Investors King recalls that as of October 2021, a total of US$2.9 billion in various forms of support was extended to some airlines by their governments. The most African government to announce such according to the report is the Mauritius Government.

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Walmart, Amazon, Apple, Others Top 2022 Fortune 500 List

Walmart took the top spot for the tenth year in a row, generating $5.1 trillion cumulative revenue over that time

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Fortune Magazine has released the 68th edition of their annual list of the top 500 US companies with Walmart, Amazon, and Apple topping the list.

Fortune 500 list is an annual list of the top 500 largest companies in the United States, ranked based on the total revenue each of the companies generated in their respective fiscal years. It is compiled by Fortune Magazine.

A check by Investors King shows 2022 top 500 largest companies in the United States earned a combined $16.1 trillion in revenue and realised $1.8 trillion in profits. Indicating that the 2021 revenue grew by $6.4 billion, or 19% when compared to 2021 numbers.

Breaking down this year’s list, Walmart took the top spot for the tenth year in a row, generating $5.1 trillion cumulative revenue over that time.  Amazon.com came second with a 22% increase in revenue in 2021 to cross the $450 billion threshold.

Apple, perhaps the most profitable company on the list for the eighth time in eight years, generated profits of $95 billion to sit in the number three position.

CVS Health and CEO Karen Lynch strive to produce Fortune 500 history as the highest-ranking firm ever led by a female CEO, at number 4.

UnitedHealth Group maintained its position as USA’s largest health insurance provider, with considerable growth in 2021. The corporation served 2.2 million more individuals this year than the previous year, and revenue increased by 12% to $287 billion, making it claim the 5th spot.

Exxon Mobil has risen from 10th to 6th place on the Fortune 500 after a difficult, pandemic-affected 2020. After COVID-related limitations drove energy consumption and oil and gas prices to plunge, Exxon Mobil trimmed costs to shore up its balance sheet, laying off 9,000 employees. These measures, combined with a resurgence in oil prices, let the business earn more than $23 billion in 2021, its highest annual profit in seven years.

Warren Buffet’s Berkshire Hathaway generated the second-largest profits among Fortune 500 firms last year, with $90 billion in net income. Its stock also soared, returning 23.2 percent in 2021, putting it in the 7th position.

Alphabet had a spectacular record, reaching $200 billion in sales for the first time. Alphabet was the best-performing Big Tech stock in 2021, with shares up nearly three times the Nasdaq’s 22 percent gain. It also put aside $50 billion for share repurchases and announced a 20-to-1 stock split to stimulate more investment. With steady growth in revenue and profit from 2006, Alphabet took the 8th spot.

Mckesson, one of the largest drug distributors in the country ranked 9th with a clear revenue of $238,228 million in the 2021 fiscal year despite a $4.5 billion loss.

Despite a fall in this year’s ranking, AmerisourceBergen increased its revenue by 12.7%, to $214 billion for the 2021 fiscal year. The company ranked 10th, following its counterpart, Mckesson.

2022 Top 10 Fortune 500 List

  • Walmart
  • Amazon
  • Apple
  • CVS Health
  • United Health Group
  • Exxon Mobil
  • Berkshire Hathaway
  • Alphabet
  • Mckesson
  • AmerisourceBergen

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Kaduna Airport Finally Resumes Operation, Azman Air Becomes First Airline to Reopen 

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Kaduna International Airport

After it suspended all flight operations for almost two months, the Kaduna Airport has finally resumed its flight operations, starting with Azman Air. 

The Federal Airports Authority of Nigeria (FAAN) announced that the Kaduna airport has commenced full flight operations after it was shut down due to an attack by gunmen. 

The acting General Manager, Corporate Affairs, Federal Airports Authority of Nigeria (FAAN), Faithful Hope-Ivbaze, confirmed to newsmen on Monday that “Flight operations to Kaduna airport have commenced today with Azman Air.”

Investors King gathered that Azman Air, via its official Twitter account, announced the resumption of flights to the Kaduna airport, making it the first airline to resume operations.

The tweet reads: “Azman Air landed at Kaduna Airport today 23rd May 2022, to the elation and cheers of passengers, stakeholders, and staff. 

“Azman Air is the first Airline to resume operations in the Kaduna Airport after it has been closed for almost two months. 

“It was a defining moment for the aviation community as the airport is reopened after being closed for two months. It’s so exciting to be back!”

The airport manager, Aminat Salami, said: “As you can see, I have all my management staff here. We have been closed from the 26th of March, close to two months and I’m very sure and you can see we are all excited and happy and I’m praying that Azman will continue their operations successfully and they should not be discouraged by the first flight because people are not really aware”. 

“We will try to do more of the video advert so that the passengers would improve as time goes on,” she added. 

Recall that in March, it was reported that gunmen attacked the airport and killed a security guard while the Kaduna-Abuja train was also attacked on the same day. 

The airline had stopped its flight operations into Kaduna following the attack at the airport eight weeks ago. 

The attack was however repelled by the airport security operatives.

 

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Senior Advertising Execs Expect Dramatic Growth in Budgets

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Pedestrians walk past a shop displaying advertising for a sale in central Sydney, Australia

New research from Alfi, an AI enterprise SaaS advertising platform, shows senior advertising executives are forecasting strong growth in advertising budgets over the next 12 months with 24% predicting dramatic growth.

The global study among senior executives including CEOs found 61% are more modest and are predicting slight growth while just 15% believe advertising budgets will remain at around the same level as today.

Growing budgets for advertising mean the executives questioned in the UK, US, France, Germany, Canada, Australia are increasingly looking for better ways to measure the reach and effectiveness of campaigns.

Alfi’s study shows executives are generally happy with the campaign data available but just 21% rate it as ‘excellent’ while 65% describe it as ‘good’. However, 14% say it is average or poor.

That is driving increased interest in the use of QR codes in Digital Out of Home (DOOH) advertising, which enables advertisers to measure exactly how impactful their campaigns are through first-party data which is accessible instantly.

More than a third (34%) of senior executives believe the importance of QR codes in advertising will increase dramatically over the next two years while 56% believe it will increase slightly.

“The global advertising industry is going from strength to strength after recovering strongly in 2021 to hit a new record high** and the indications are that it will continue in 2022 and beyond,” said Peter Bordes, Interim CEO, Alfi. “Increased spending should mean increasing the focus on measurement and data, which explains the growing use of technology and QR codes in particular.”

The study found all the senior executives questioned agree that the use of QR codes in advertising will increase dramatically over the next two years with 50% strongly agreeing with the view.

Bordes concluded: “Throughout the industry we can expect a higher focus on data-driven insights by expanding advertising capabilities, analytical sophistication and delivering it all seamlessly over multiple devices – thus leading to not only confident purchase behaviours but greater one-to-one connections with consumers.”

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