African airlines expected to face another tough year

African airlines are facing another tough year as the COVID-19 global epidemic continues to wreak havoc on the aviation industry. According to the latest Air Transport report by the African Airlines Association, revenue losses for African airlines are expected to surpass $8 billion in 2021, following a staggering $10 billion loss in 2020. The road to recovery seems challenging, with numerous hurdles in the way. Aviation Analyst, Sindy Foster, shed light on the critical factors impacting the recovery of African airlines in a recent CNBC Africa interview. One of the key obstacles hindering the recovery of African airlines is the ongoing lockdowns, border controls, and disruptions in the aviation system. Foster emphasized that without policymakers making the right decisions regarding the movement of people and easing border restrictions, the airlines will struggle to bounce back. She stressed the importance of reducing unnecessary costs to make air travel more affordable for passengers. Additionally, African airlines need to explore revenue opportunities such as implementing ancillary revenues and dynamic pricing strategies to boost their income. Building partnerships, reducing fuel and maintenance costs, and expanding interlining and codeshare agreements are also crucial steps that African airlines can take to enhance their operations and reach more markets. Another vital aspect that Foster highlighted is the need to focus on domestic and regional travel. She pointed out that Africa missed an opportunity during the COVID-19 pandemic to promote intra-continental travel. Foster emphasized the potential in domestic travel within Africa and the importance of making it accessible and affordable for passengers. However, challenges such as restricted capacity, high fares, and policy-driven problems like currency access in countries like Nigeria are impeding the growth of domestic travel. Foster called for better marketing of African destinations to encourage local travel and reduce the reliance on international routes, particularly to European destinations. In terms of innovation, Foster highlighted that African airlines have the capacity to implement existing innovative solutions from around the world. She emphasized the importance of enhancing connectivity within Africa to facilitate easier and more cost-effective travel within the continent. Foster underscored the significance of implementing strategies like local carriers, secondary airports, dynamic pricing, and digital transformation to improve the efficiency and competitiveness of African airlines. Foster stressed the need for knowledge sharing, stakeholder engagement, and collaboration within the industry to drive progress and facilitate seamless travel across the continent. While the road to recovery for African airlines may be challenging, with the right strategies, partnerships, and policy interventions, the industry can navigate the current crisis and emerge stronger in the post-pandemic era.