Connect with us

Travel

IATA Reports 14.1% Growth in African Airline Demand for May 2024

Published

on

iata

The International Air Transport Association (IATA) reported a 14.1% year-on-year increase in passenger demand for African airlines in May 2024.

Capacity for African airlines also rose by 8.2% year-on-year, demonstrating a healthy expansion to accommodate the increased demand.

The load factor for May stood at 72.3%, a 3.7 percentage point improvement compared to the same period in 2023. Despite this growth, Africa has the lowest load factor overall.

Globally, the total demand for air travel, measured in revenue passenger kilometers (RPKs), rose by 10.7% compared to May 2023.

Total capacity, measured in available seat kilometers (ASK), increased by 8.5% year-on-year. The global load factor reached a record high of 83.4%, up 1.7 percentage points from May 2023.

Willie Walsh, IATA’s Director General, said “Strong demand for travel continues with airlines posting a 10.7% year-on-year increase in travel for May. Airlines filled 83.4% of their seats, a record for the month. With May ticket sales for early peak-season travel up nearly 6%, the growth trend shows no signs of abating.”

International demand rose by 14.6% compared to May 2023, with capacity up 14.1% year-on-year and the load factor improving to 82.8%, a 0.3 percentage point increase.

Domestic demand also saw a rise, with a 4.7% year-on-year increase, while capacity remained relatively flat at a 0.1% increase, and the load factor climbed to 84.5%, up 3.8 percentage points from May 2023.

However, Walsh highlighted ongoing challenges, particularly in air navigation service providers (ANSPs), which have faced significant delays.

“With 5.2 million minutes of air traffic control delays racked up in Europe even before the peak season begins, it is clear that Europe’s ANSPs have unresolved challenges,” he noted. “Airlines are accountable to their customers; ANSPs must be as well.”

Breaking down the data by region, Asia-Pacific airlines led the way with a 27.0% year-on-year increase in demand, maintaining their position as the largest contributor to industry-wide growth.

European carriers saw an 11.7% increase, while Middle Eastern airlines posted a 9.7% rise.

North American carriers experienced an 8.1% increase, and Latin American airlines saw a notable 15.9% growth in demand.

Despite the global uptick, the focus on Africa’s significant growth is a testament to the region’s potential. The impressive increase in demand and capacity highlights the resilience and opportunity within the African aviation market.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Travel

Airline Stocks Tumble as Ryanair Cuts Summer Fare Forecast

Published

on

Ryanair’s announcement of a significant cut in summer fare expectations has sent ripples through the airline industry, causing stocks to fall sharply.

The no-frills airline reported a nearly 50% drop in profits for the quarter ending June 30, attributing the decline to lower passenger fares and frugal consumer behavior.

Ryanair’s profit before tax fell to €401 million, a stark contrast to the same period last year. This slump is primarily due to a 15% decrease in average passenger fares, as travelers continue to tighten their budgets amid ongoing economic uncertainties.

Chief Executive Michael O’Leary highlighted the shift in consumer behavior, noting that “fares are now moving materially lower than the prior year and pricing continues to deteriorate.”

The company’s previous forecast of stable fares has been revised, with expectations now set for a “materially lower” fare structure between July and September.

The announcement triggered a sell-off in airline stocks, with Ryanair’s share price plummeting by 17%.

Other airlines, including EasyJet and Wizz Air, also experienced declines, reflecting broader concerns about the industry’s financial health as customer spending contracts.

Experts are questioning whether the entire sector is facing a downturn, especially as consumers delay booking trips and opt for more budget-friendly options.

Despite the profit drop, Ryanair reported a slight increase in passenger numbers, which helped mitigate a more significant fall in overall revenue.

However, the airline emphasized that its summer performance heavily relies on last-minute bookings, particularly in August and September.

The trend of delayed bookings is partly due to the cost-of-living crisis, which continues to influence consumer spending habits.

This trend aligns with observations from other airlines like Jet2, which noted only modest price increases amid late bookings.

Ryanair’s struggles are compounded by external challenges such as air traffic control strikes and a global IT meltdown, which have led to delays and cancellations.

These issues have further dampened consumer confidence, potentially impacting last-minute booking numbers.

Moreover, Ryanair faces operational hurdles with aircraft deliveries. Boeing has warned that some 737 Max planes expected by next spring will be delayed until summer 2025, posing a threat to Ryanair’s capacity during peak travel periods.

The airline industry is grappling with the end of a post-pandemic boom in pricing, as evident from warnings by other carriers like Lufthansa and Air France-KLM.

As economic pressures mount, the sector must navigate a landscape of cautious consumer spending and logistical challenges.

Ryanair’s latest figures underscore the fragile nature of the current travel market, prompting airlines to reassess strategies to attract budget-conscious travelers while maintaining profitability.

Continue Reading

Travel

Max Air Flight Suffers Multiple Tyre Bursts, Passengers Safe

Published

on

Max Air

A Max Air flight carrying 119 passengers and six crew members from Yola to Abuja experienced a rare tyre malfunction during takeoff.

The Boeing 737, flight NGL1649, encountered an issue when four of its tyres burst, leading to an emergency halt on the runway.

The Director of Public Affairs and Consumer Protection at the Nigerian Safety Investigation Bureau (NSIB), Bimbo Olawumi Oladeji, confirmed the incident.

She stated that as the aircraft began its takeoff roll, a loud bang was heard, identified as the bursting of the rear gear tyres.

Initially, two tyres burst, and while attempting to taxi off the runway, the remaining two tyres also burst, leaving the aircraft disabled.

Glory be to God, no injuries were reported among the passengers or crew, thanks to the quick response and professionalism of the flight team.

A go-team, led by NSIB Director General Alex Badeh, is set to conduct a thorough investigation into the incident to determine the cause of the malfunction.

This investigation aims to ensure the continued safety and reliability of air travel in the region.

Max Air has expressed gratitude for the cooperation and calmness of all passengers during the incident and assured the public of their commitment to maintaining high safety standards.

The airline is working closely with authorities to address any potential issues and prevent future occurrences.

As investigations proceed, the aviation community remains focused on learning from the event to enhance safety protocols and maintain passenger confidence in air travel across Nigeria.

Continue Reading

Travel

High Altitude, Higher Prices: Domestic Airfares Jump 150%

Published

on

Arik Airplane - Investors King

Nigerian air travelers are reeling from a dramatic increase in domestic airfares with prices skyrocketing by 150% over the past year.

This surge has forced many passengers to reconsider their travel options, opting for road transport despite the risks involved.

Passengers like Dare Adepoju, who frequently commutes between Lagos and Abuja for business and family visits, have expressed frustration.

“It’s unsustainable,” he lamented. “With flights nearing N200,000 for just an hour, I’m exhausted.”

Social media is abuzz with similar sentiments. Akinloa Adejuwon tweeted about the tough choice between costly flights and unsafe roads, highlighting the dire situation many Nigerians face.

The fare increase is attributed to a limited number of operational aircraft. Airline Operators of Nigeria revealed that many planes are grounded due to maintenance needs and lack of access to foreign exchange for repairs.

The current situation sees airlines like Ibom Air and Air Peace charging up to N238,000 for a one-way ticket between major cities.

This price jump, from about N51,000 last year, reflects the severe challenges the industry faces.

Capt. Roland Iyayi, a senior member of the Airline Operators of Nigeria, pointed to the shortage of aircraft as a primary cause.

“Making forex available to airlines is crucial for resolving this crisis,” he stated.

As the industry grapples with these challenges, passengers continue to hope for relief. The aviation sector’s future hinges on addressing these issues, ensuring safe and affordable travel for all Nigerians.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending