Africa air travel to soar near record in 2023

The International Air Travel Association (IATA) has forecasted net profits of about $9.8 billion for the aviation industry in 2023. To delve into the recent industry numbers and trends, CNBC Africa spoke with Derek Nseko, CEO of Airspace Africa, during the IATA AGM. The annual general meeting of industry bodies representing most airlines worldwide is crucial this year as the aviation sector emerges from a challenging period. Despite economic pressures like inflation and high fuel costs affecting airline performance at the start of the year, there is optimism as the industry progresses in 2023. Sustainability is a key focus, with the aviation industry committing to achieving net zero emissions by 2050. This aligns with global efforts to address climate change, with various initiatives aimed at decarbonizing air travel. In terms of industry performance, although passenger volumes are at around 90% of pre-pandemic levels, airlines are seeing record revenues. After years of collective losses, the industry is finally turning a profit, surpassing initial projections for 2023 by twice the amount. Major airlines like Ryanair, Emirates, and Singapore Airlines are reporting significant profits, signaling a robust recovery. Despite higher ticket prices, consumer confidence remains high, driving demand and boosting airline revenues. China's relaxation of COVID restrictions and lower fuel prices have also positively impacted the global aviation sector. In Africa, however, the aviation industry continues to face challenges, with projections indicating a loss of $500 million in 2023. While this represents an improvement from the previous year, African airlines still grapple with infrastructure, regulatory, and connectivity issues. Some airlines, like Just Tag Angola, have managed to achieve profitability, offering hope for the continent's aviation sector. To overcome these challenges and foster growth, African countries must prioritize initiatives like the Single African Air Transport Market to enhance connectivity and drive progress.