Nigeria’s two main airports in Abuja and Lagos have been ranked as the costliest in Africa by the International Air Transport Association (IATA), a trade body representing 290 airlines worldwide. The IATA vice-president for Africa and Middle East, Kamil Al-Awadhi, said the high charges imposed by the airports are hampering the growth and competitiveness of the aviation sector in Nigeria. African-based carriers are expected to generate a moderate combined loss of around $484 million in 2023.
He made the remarks at the Aviation Africa 2023 Summit in Abuja, where he highlighted some of the challenges facing African airlines, such as high interest rates, expensive fuel, aircraft lease rentals and taxes. He said these factors make it difficult for Nigerian and other African carriers to operate profitably and sustainably and urged the government and the industry to work together to address them.
He remembered that during the second quarter of 2023, African airlines experienced some of the highest annual growth rates in passenger traffic globally, trailing only behind the Asia Pacific region. African carriers saw a remarkable 38.9 percent increase in total traffic compared to the same quarter in 2022, surpassing the industry-wide average for both total and international traffic growth. This achievement is notable, especially considering that the region has not fully recovered to its pre-pandemic levels. He also noted that in the second quarter of 2023, the number of passengers transported per kilometer was 9.2 percent lower than during the same quarter in 2019.
The aviation sector has a huge potential to contribute to the economic development of Nigeria and the continent. In countries like Dubai, Qatar and Singapore, governments have leveraged on their aviation sectors to transform their economies. Africa accounts for 18 percent of the global population, but only 2.1 percent of air transport activities. However, Africa’s passenger air traffic will double by 2040, reaching 300 million passengers.
Despite these ongoing positive trends, the African aviation sector still faces economic challenges that significantly limit the affordability of air travel. He further mentioned that the potential for aviation in Africa is limited by recurring safety incidents, infrastructure constraints, blocked funds, regulatory impediments and skills shortages, among other factors. He called for more investment in aviation infrastructure, adoption of global standards, promotion of connectivity and innovation, and enhancement of safety and security.
Source: [Leadership]
