African freight demand increases by 12.7% year-on-year, new IATA report indicates

African carriers’ freight demand increased by 12.7 per cent in September 2016 compared to the same period last year, making it the fastest growth rate in nearly two years, according to a new report by the International Air Transport Association (IATA). The continent’s air traffic grew by 13.1 per cent year-on-year in September 2016, which was also the fastest growth rate in nearly two years, according to the report released last week. It indicates that RwandAir, the national flag carrier, posted an impressive growth rate, transporting more than 600,000 passengers last fiscal year. The improvement was also recorded by most of the region’s carriers, with freight capacity growing by 35.9 per cent year-on-year, almost three times faster than demand, and driven by rapid long-haul expansion. Overall, African airlines posted an 8 per cent rise in traffic which was matched by an equivalent rise in capacity. Load factor was almost flat at 72 per cent. The strong demand largely reflects the increasing appetite for aviation as an enabler for economic development on the continent despite the challenges the industry is facing, IATA indicates. The African international freight load factor was at 24.6 per cent in September – five percentage points lower than the same month a year ago, and just over half the industry average of 46.9 per cent. Raphael Kuuchi, the IATA vice-president for Africa, said poor connectivity and awkward travel schedules continue to affect Africa’s aviation sector. He added that the challenges have hampered the development of air transport across the continent. According to Kuuchi, the aviation industry has the potential to make huge contributions to economic growth across the continent, saying it can open and connect markets, facilitate trade and enable African firms to integrate into global supply chains. “Enhancing air connectivity can help raise productivity by encouraging investment and innovation and by improving business operations and efficiency,” Kuuchi said. Commenting on the report, John Mirenge, the RwandAir chief executive officer, said restrictions on airspace are the biggest impediment to the continent’s aviation business. “The lack of an open sky policy is, by far, the most challenging factor to the continent’s aviation industry. Yes, the policy could be there as is enshrined in the Yamoussoukro Protocol, but it has not been implemented, a situation that has hurt the industry,” the RwandAir chief executive said. He added that this limits opportunities for airlines to cover more destinations on the continent competitively. According to the IATA report, the global aviation industry seeks to foster sustainable and environmental-friendly growth targets. Already, countries have, through the International Civil Aviation Organisation (ICAO), agreed on a plan to offset the environmental impact generated by future air traffic growth. The unprecedented step toward achieving long-term sustainability for an entire industrial sector challenged governments to “recognise the immense contribution aviation makes to economic development and global well-being and support efficient technologies, infrastructure and operations to boost aviation business”.

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African freight demand increases by 12.7% year-on-year, new IATA report indicates