Aviation sector outlook for 2024

The aviation industry is set for a significant rebound in 2024 following a challenging year in 2023. According to the International Air Transport Association, airlines are projected to make a profit of $25.7 billion next year. CNBC Africa recently interviewed Derek Nseko, the CEO of Airspace Africa, to discuss the sector's performance in 2023 and to provide an outlook for 2024. Nseko highlighted key areas of focus for the industry, including regulation, security, and the growth of the cargo sector. Despite facing challenges, Nseko remains optimistic about the industry's prospects in the coming year. Regulation plays a vital role in the aviation industry, ensuring safety and operational standards are met. Nseko highlighted the progress made in enhancing accessibility within Africa's aviation sector, particularly through initiatives like the African Union's Agenda 2060 and the single African air transport market. Efforts by the African Civil Aviation Commission to implement open skies policies are also crucial in improving market access for airlines across the continent. Security remains a top priority for the industry, with Nseko emphasizing the importance of striking a balance between regulations and security measures. He noted the significant improvement in safety standards in Africa, with countries like Uganda recording positive outcomes from safety audits conducted by international bodies. The cargo sector has emerged as a vital component of the aviation industry, with Nseko highlighting its resilience amid global supply chain disruptions. While cargo volumes have declined in recent years, the sector still remains above pre-pandemic levels. Nseko stressed the need for African airlines to invest in cargo infrastructure to leverage the potential for growth and profitability. Looking ahead to 2024, Nseko expressed optimism about the industry's outlook, citing strong demand for travel and increasing cargo numbers. Despite challenges such as high oil prices, Nseko believes that inflation will ease and political stability will improve in the coming year. The industry is poised for growth, with Nseko confident that the positive trends seen in 2023 will continue into 2024. As the aviation sector continues to navigate the impact of the COVID-19 pandemic and global geopolitical challenges, industry leaders like Derek Nseko remain committed to driving growth and innovation in the sector. With a focus on enhancing regulatory frameworks, improving security measures, and leveraging the potential of the cargo sector, the aviation industry is set to soar to new heights in 2024.