COVID-19: Ghana and rest of Africa losing out of air transport business despite global recovery

Ghana’s borders remain closed. This is because right from the beginning, it was observed that the early cases of COVID-19 recorded in the country were imported.

Other countries on the African continent did same and are paying the price. The latest figures released by the International Air Transport Association (IATA), shows that Africa is losing out from the continuous closure of the borders.

For instance, African airlines’ traffic sank 98.7 per cent in April, nearly twice as bad as the 49.8 per cent demand drop in March. Capacity contracted 87.7 per cent, and load factor dived 65.3 percentage points to just 7.7 per cent of seats filled, lowest among regions.

Global recoveries

After suffering a major hit in the wake of the devastating COVID-19 outbreak, global aviation industry activities is gradually beginning to rebound.

More recently, figures show that daily flight totals rose 30 per cent between the low point on 21 April and 27 May.

This was after passenger demand in April (measured in revenue passenger kilometres or RPKs), plunged 94.3 per cent compared to April 2019, as the COVID-19-related travel restrictions virtually shut down domestic and international air travel.

According to a report published today by the IATA, “This is a rate of decline never seen in the history of IATA’s traffic series, which dates back to 1990”.

While this uptick is not significant to the global dimension of the air transport industry, IATA is of the view that it does suggest that the industry has seen the bottom of the crisis, provided there is no recurrence. In addition, it is the very first signal of aviation beginning the likely long process of re-establishing connectivity.

IATA shows optimism

The Director General and CEO of IATA, Mr Alexandre de Juniac, said, “April was a disaster for aviation as air travel almost entirely stopped. However, April may also represent the nadir of the crisis.

Flight numbers are increasing. Countries are beginning to lift mobility restrictions. In addition, business confidence is showing improvement in key markets such as China, Germany, and the US. These are positive signs as we start to rebuild the industry from a standstill. The initial green shoots will take time possibly years to mature.”

IATA calculated that by the first week of April, governments in 75 per cent of the markets tracked by IATA completely banned entry, while an additional 19 per cent had limited travel restrictions or compulsory quarantine requirements for international arrivals.

The initial flight increases have been concentrated in domestic markets. Data from late May show that flight levels in Republic of Korea, China and Vietnam have risen to a point now just 22-28 per cent lower than a year earlier . Searches for air travel on Google also were up 25 per cent by the end of May compared to the April low, although that’s a rise from a very low base and still 60 per cent lower than at the start of the year.

International passenger markets

The report said April international passenger demand collapsed 98.4 per cent compared to April 2019, a deterioration from the 58.1 per cent decline recorded in March. Capacity fell 95.1 per cent, and load factor plunged 55.3 percentage points to 27.5 per cent.

• Asia-Pacific airlines’ April traffic plummeted 98.0 per cent compared to the year-ago period, worsened from a 70.2 per cent drop in March. Capacity fell 94.9 per cent and load factor shrank 49.9 percentage points to 31.3 per cent.
• European carriers’ April demand toppled 99.0 per cent, a sharp decline from the 53.8 per cent decline in March. Capacity dropped 97 per cent and load factor shrank by 58 percentage points to 27.7 per cent.
• Middle Eastern airlines posted a 97.3 per cent traffic contraction for April, compared with a 50.3 per cent demand drop in March. Capacity collapsed 92.3 per cent, and load factor crumbled to 27.9 per cent, down 52.9 per cent percentage points compared to the year ago period.
• North American carriers had a 98.3 per cent traffic decline in April widened from a 54.7 per cent decline in March. Capacity fell 94.4 per cent, and load factor dropped 57.2 percentage points to 25.7 per cent.
• Latin American airlines experienced a 98.3 per cent demand drop in April compared to the same month last year, from a 45.9 per cent drop in March. Capacity fell 97.0 per cent and load factor fell 34.5 percentage points to 48.1 per cent, highest among the regions.

Reality

“For aviation, April was our cruellest month. Governments had to take drastic action to slow the pandemic. However, that has come with the economic cost of a traumatic global recession. Airlines will be key to the economic recovery. It is vital that the aviation industry is ready with bio-safety measures that passengers and air transport workers have confidence in. That’s why the speedy implementation of International Civil Aviation Organization’s (ICAO) global guidelines for safely re-starting aviation is the top priority,” Mr de Juniac said in the report.

“We fully support its recommendations and look forward to working with governments for a well-coordinated implementation. The world cannot afford to delay,” he added.