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NRC Revenue Falls by 71% as Passengers Shun Rail Trips Owing to Insecurity 

The total revenue generated by the NRC from passengers dropped by N1.48 billion in the second quarter of 2022.

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Lagos-Ibadan Train Services - Investors King

Owing to incessant attacks and kidnapping by gunmen on rail lines, a fresh data has shown a significant drop in revenue generated by Nigerian Railway Corporation (NRC).

The document stated that the total revenue generated by the NRC from passengers dropped by N1.48 billion in the second quarter of 2022.

Investors King had reported various attacks on the transportation sector, especially the rail system.

Recall that in March 2022, over 900 people were on board an Abuja-Kaduna train when it was attacked along the route. While some were lucky enough to escape, the majority were killed on the spot or captured.

Economic experts had said this incident would create fear and anxiety in other individuals who may have been eager to try out railway transportation, and it also demonstrates that rail transportation, which was formerly seen to be a safe mode of transit, is now unsafe.

Meanwhile, the NRC data contained in a report by the National Bureau of Statistics, titled: ‘Rail Transportation Data Q2 2022’, revealed that the N1.48 billion loss represents a decline of 71 percent when compared with the first quarter of the year under review.

The report added that 422,393 passengers travelled through the rail system in Q2 2022 as against 953,099 passengers recorded in the first quarter of 2022.

It was discovered that the decrease in the number of passengers also had a severe negative effect on the revenue generation of the corporation.

For instance, the revenue generated from passengers in Q2 2022 was N598, 736,300, while for Q1 2022; the revenue generated was N2, 077, 836,686.

While there was a shortfall in revenue from passengers, the report showed that there was an increase in the revenue generated from goods and cargo.

Analysis of the figure shows that the revenue generated from goods/cargos in Q2 2022 was N86, 007,680, while revenue generated from goods/cargos in Q1 2022 was N71, 769,967.

However, in another report made available by the NBS, the NRC generated N2.41 billion in revenue from passengers in 2019, as official statistics further revealed that passenger income was the most important source of revenue in 2019.

For the same year, revenue from goods or cargo was N362.88 million, while revenue from other income receipts was N64.58 million, totaling N2.84 billion for the year.

In a breakdown of revenue generation, the report showed that as a result of the COVID-19 pandemic’s suspension of many major operations, the revenue generated from these three sectors; passengers, goods or cargo, and other income receipts, declined in 2020.

According to report, a total of N1.75 billion in passenger revenue was generated, which put a decline of 28 percent as against the previous year.

Meanwhile, revenue from goods or cargos fell by 92 percent to N5.19 million, while total revenue from other income receipts fell by 22 percent to N281.35 million.

Rail transportation brought in N2.03 billion at the conclusion of the year, with revenue from passengers contributing the highest income.

Passenger revenue more than quadrupled in 2021 to N5.70 billion, while goods or cargo revenue increased to N317.57 million. Total revenue for the year was a massive N6.08 billion, with revenue from other income receipts amounting to N66.80 million.

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Ethiopian Airlines Group Celebrates 78 Years of Excellence and Innovation

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Ethiopian Airlines Group, Africa’s leading airline organization, commemorated its 78th anniversary with a tribute to its rich history of resilience and innovation since its inception in 1946.

Led by its Group Chief Executive Officer, Mr. Mesfin Tassew, and Chief Commercial Officer, Mr. Lemma Yadecha, the airline marked this significant milestone with a special flight to Cairo, retracing its inaugural international service route.

Reflecting on the occasion, CEO Mesfin Tasew emphasized the airline’s enduring commitment to passenger service and servant leadership.

He highlighted Ethiopian’s journey from modest beginnings to becoming a pioneering force in African aviation, introducing numerous innovations along the way. Tasew’s sentiment encapsulated the airline’s ethos of prioritizing passenger satisfaction and continuous improvement.

In keeping with its tradition of community engagement, Ethiopian Airlines distributed Seasons Greeting Packages and Happy Fasting Messages to passengers, embracing the diverse cultural backgrounds of its travelers.

This gesture underscored the airline’s dedication to fostering unity and inclusivity among its passengers, transcending geographical boundaries.

Chief Commercial Officer, Lemma Yadecha, emphasized the airline’s mission to go beyond transportation, aiming to create a sense of belonging for all passengers.

By assuming roles typically held by ground and flight crew members, Ethiopian Airlines honored its dedicated staff and the countless individuals who contributed to its success over the past 78 years.

As Ethiopian Airlines celebrates this historic milestone, it reaffirms its commitment to service excellence and innovation in the aviation industry, promising to continue leading Africa’s skies with distinction and pride.

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Global Air Travel Surges by 21.5% in February, IATA Reports

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Global air travel increased by 21.5% in February, according to the latest report from the International Air Transport Association (IATA).

This surge represents a significant improvement from January’s 16.6% growth and reflects increasing confidence in air travel despite ongoing challenges.

The latest report from IATA revealed that the surge in demand was accompanied by a notable rise in capacity, which grew by 18.7% compared to the same period in 2023.

This surge in capacity underscores airlines’ efforts to meet the growing demand for air travel worldwide.

One of the most encouraging aspects of the report is the notable increase in the February load factor, which soared to 80.6%.

This represents a substantial increase of 1.9 percentage points compared to the previous year, indicating a higher utilization of available capacity.

International demand for air travel saw a particularly robust growth, surging by 26.3% compared to February 2023.

This surge was matched by an increase in capacity, up by 25.5% year-on-year, leading to an improved load factor of 79.3% for international flights.

Willie Walsh, the Director-General of IATA, expressed optimism about the industry’s prospects in 2024, citing airlines’ accelerated investments in decarbonization and the resilience of passenger demand in the face of geopolitical and economic uncertainties.

However, he cautioned against new taxes that could destabilize the positive trajectory and make travel more expensive, particularly in Europe.

Industry experts have lauded the aviation sector’s resilience in attracting more passengers and expanding its capacity amidst challenges. Despite currency devaluation and soaring aviation fuel prices in countries like Nigeria, air travel demand remains robust.

Susan Akporiaye, President of the National Association of Nigerian Travel Agencies, emphasized the sustained high traffic levels despite the challenges faced by travelers.

The global aviation industry is still on the path to recovery from the negative impact of the COVID-19 pandemic.

According to the Ministry of Aviation, the industry lost about N21 billion monthly during the COVID-19 lockdown. Analysts project that it may take until the end of 2024 for the industry to fully recover to pre-pandemic levels.

As air travel continues to rebound, stakeholders remain cautiously optimistic about the industry’s future trajectory. The surge in demand observed in February underscores the resilience of air travel and its importance in facilitating global connectivity and economic growth.

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Emirates Airlines Set to Resume Nigeria Operations by June 2024, Confirms Aviation Minister

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Emirates Airlines is on track to resume its operations in Nigeria by June 2024.

The news was confirmed by the Minister of Aviation and Aerospace Development, Festus Keyamo, during an interview on Arise Television on Monday.

Keyamo revealed that the Emirates’ return to Nigeria follows extensive negotiations and resolution of longstanding issues between the Nigerian government and the United Arab Emirates (UAE).

He highlighted the pivotal role played by President Bola Tinubu in facilitating diplomatic efforts to mend relations between the two countries.

“The resumption of Emirates flights is almost happening. I just received a letter from Emirates confirming their readiness to come back,” stated Keyamo during the interview.

He further explained that Emirates Airlines had completed all necessary processes and was now awaiting the finalization of operational details before announcing the exact date for its first flight back to Nigeria.

The minister expressed gratitude for the collaborative efforts that led to this breakthrough, emphasizing President Tinubu’s proactive engagement in resolving the bilateral issues.

“Mr. President was the showman here. He made my job easy because he went there and had a diplomatic shuttle to resolve all the issues,” Keyamo noted.

The suspension of Emirates’ flight operations to Nigeria in October 2022 had left travelers and businesses grappling with limited connectivity options.

The airline attributed the halt to challenges in repatriating funds held in Nigeria, amounting to $85 billion.

However, following sustained diplomatic engagements and concerted efforts by both nations, the impasse has been successfully resolved, paving the way for Emirates’ return.

Keyamo’s announcement comes after a series of discussions with Emirates representatives, indicating significant progress toward the airline’s comeback.

 

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