It can be recalled that in 2020, The global world and Africa in particular experienced a setback, with an estimated $7.7 billion loss in the aviation sector due to COVID-19-related restrictions imposed by governments.
IATA revealed that Nigeria faced a monthly loss of about N21 billion during the height of the pandemic and it is predicted to continue until 2024 when the aviation sector reaches a breakthrough and return to the operational levels as witnessed in 2019.
This was conveyed during the 55th AFRAA Annual General Meeting by Kamil Alawadhi, AITA’s Regional Vice-President for Africa and the Middle East, where he cautioned governments against viewing the aviation sector merely as a source of revenue.
He also stressed that this type of approach could be counterproductive to the industry's growth potential.
He said, “Africa’s aviation industry is still recovering from significant losses due to the pandemic.
To make up for this shortfall, governments should avoid imposing higher fees, levies, carbon taxes or new taxes on air transport, trade or tourism.
“These measures would only make air travel more expensive and less accessible in Africa, where the average airfare is already 30 per cent higher than the industry average and the jet fuel cost is 10-20 per cent higher than the global average.”
While the sector continues to recover, higher costs will discourage customers who are sensitive to prices, which will impact revenue, he said.
“They would also hamper economic development and limit the opportunities for job creation and income generation. High cost leads to high price, which reduces demand and growth in a price-elastic market, and ultimately affects connectivity negatively.’’
He advised the governments to follow the International Civil Aviation Organisation’s policies on charges and infrastructure and consult with airlines and industry to ensure a fair and cost-effective operational environment that benefits a more connected continent.
