Aeroplanes at the Jomo Kenyatta International Airport in Nairobi. FILE PHOTO | NMG African airlines continue to sink deeper into financial distress, owing to the economic hardships caused by the Coronavirus.
The airlines, which were already flying in turbulent skies even before the first case of Covid-19 was reported on the continent, have now lost a total of Sh860 billion as at May 2020, a new report reveals.
The Impact Assessment Analysis Report released recently by the African Airlines Association (AFRAA) further shows a 90.3 percent year on year passenger traffic reduction in May, with minimal recovery being expected in the next three months, starting with domestic operations, followed by regional and intercontinental flights.
There is currently a shortage of cargo capacity in Africa, with airlines currently surviving by ferrying medical equipment and essential goods to fight the virus.
"The rise in the number of Covid-19 cases indicates that the most impacted countries in Africa are South Africa, Egypt, Morocco, Algeria and Ghana, each with a total of more than 5,000 cases of infection," the report reveals.
While the rate of infections in other continents is beginning to reduce, Africa is still grappling with increasing numbers.
However, the recovery rate in Africa is higher, with an average death rate of 9 percent compared to the world’s 19 percent, which gives the air transport industry in the continent hope that business will resume in few months.
AFRAA Secretary General, Abdérahmane Berthé told Shipping and Logistics that low levels of liquidity is the main issue to be addressed for airlines to survive and restart their operations. Without funds, he noted African airlines will not survive the shockwaves of the pandemic long enough to restart their operations, and some may even collapse.
"AFRAA urges African governments to consider a bailout and stimulus package that compensates for the significant losses, reduces the burden of ongoing operating costs, and subsidises the industry’s survival and recovery," he said.
He called on the international financial institutions and development partners to support airlines with facilities that can help ensure the availability of much-needed credit and liquidity.
"There is also the need to ensure passenger confidence to resume air travel. Communication with passengers on the health and safety measures in place is crucial to reassure them of a safe and sterile travel experience with appropriate measures in place," Mr Berthé said.South African Airways, a state-owned carrier, has suffered one of Africa’s heaviest financial setback after the government rejected […]