IATA sees $300m loss for African carriers

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The International Air Transport Association (IATA) sees bleak future for Nigeria and other African airlines next year. It said the continent’s carriers are expected to report a $300 million net loss.

The projected loss is a slight improvement of $400 million net loss recorded this year.

The global aviation body has also cautioned countries planning either privatising or concessioning of their airports. It said experience had shown that previous exercises were carried out under less transparent circumstances.

Its Director-General, Alexandre de Juniac made the disclosure at the global IATA Media Day at the agency’s headquarters in Geneva in a paper titled: Cautious Optimism Extends into 2019 Airlines Heading for a Decade in the Black.

He said the precarious situation makes Africa the weakest region as it has been over the past four years, stressing that performance is improving but only slowly.

“Losses are expected to be cut in 2019 as fuel prices decreases. The region benefits from higher-than-average yields and lower operating costs in some categories. However, few airlines in the region are able to achieve adequate load factors to generate profits,” he said.

The clearing house for global airlines has also criticised the stoppage of airport projects under construction, describing it as an ‘extreme case’.


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