AFRAA AIR TRANSPORT REPORT 2020
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TABLE OF CONTENTS Global airline industry performance 3 African Airline industry performance 2020 4 Financial performance 4 Passenger traffic growth 4 Passenger distribution 5 African airlines ranking by traffic 8 Routes ranking by traffic 8 Airport ranking by passengers traffic 10 Airport ranking by freight traffic 10 Airport charges 11 Airport connectivity index 12 African countries connectivity and openness 13 Annex: glossary 15
GLOBAL AIRLINE INDUSTRY PERFORMANCE The Covid 19 pandemic hit the air transport sector hard in 2020. All regions have experienced a dras c drop in traffic due to border closures and travel restric ons. Both capacity and traffic dropped globally: ASKs and RPKs declined by 55% and 65% respec vely. From February 2020, air traffic recorded a drop of 31% on the Asian market and 3% on the North American market. In March the traffic is down 45% and more than 95% in April. Traffic resumed significantly from July ll October, but the recovery was hampered by the second wave of infec on during the fourth quarter of the year. Few months a er the traffic restart, some countries imposed new travel bans and borders closing, impac ng interna onal markets and causing an 11% drop in the traffic. Global industry ASK and RPK growth % Global ASK growth % Global RPK growth 0% Jan-20 Jun-20 Jul-20 Aug-20 Sep-20 Dec-20 Feb-20 Nov-20 Mar-20 Apr-20 Oct-20 May-20 -20% -40% -60% -80% -100% Source: AFRAA /OAG Air cargo was also affected by the Covid situa on. The lockdowns and travel ban affected belly cargo capacity, leading to an overall yearly drop of 23%, according to IATA. Cargo traffic also declined, affected by the disrup ons in manufacturing and trade worldwide. However, the recovery from Q3 led to a 10.6% year-on-year traffic drop, but an improved Cargo load factor since capacity decrease was greater than traffic decline. 3
AFRICAN AIRLINES PERFORMANCE Africa airlines opera ons were severely impacted by the Covid19 crisis. If the first cases on the con nent appeared at the end of February in the northern region, the restric ve measures started to be applied in March. The impact was dras c for the traffic. Financial performance The Covid19 crisis had a devasta ng impact on airlines finance around the world. For African airlines, whose financial situa on was already precarious, the impact was even greater. For the year 2020, the Passenger revenue loss is es mated at USD 10.21 billion. African Airlines' Passenger Revenue Loss Q2 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q3 2021 Q4 2021 0 Billion USD -1 -0.61 -2 -1.35 -1.85 -3 -2.72 -2.60 -2.55 -4 -3.41 -3.47 Source: AFRAA /OAG Quarter 2 and 3 was the most affected, before a smooth recovery on the 4th quarter.According to our forecasts, African airlines will con nue to lose money in 2021, even if the amount will reduce. We es mate the overall Passenger revenue losses for 2021 at USD 8.35 billion. Passenger Traffic Evolution Scheduled passengers carried by African airlines 100 91.9 95.6 88.5 Million passengers 90 83.9 76.6 79.5 80 73.8 70 61 63 53.2 56 60 50 40 34.7 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 m.) (es Source: AFRAA / IATA Watts The number of scheduled Passengers carried by African Airlines is es mated to drop from 95 million in 2019 to 34.7 million in 2020, represen ng a year-on-year decline of 63.7%. 4
African airlines ASK and RPK growth % ASK growth % RPK growth 0% Jan-20 Dec-20 Jun-20 Jul-20 Aug-20 Sep-20 Feb-20 Nov-20 Mar-20 Apr-20 Oct-20 May-20 -20% -40% -60% -80% -100% Source: AFRAA /OAG African airlines’ Asks and RPKs followed the same trend as the global industry. From the end of March, the majority of carriers grounded their aircra , causing a dras c ASK and RPK drop of 85% and 94% respec vely in April. The reduc on in traffic con nued un l June, before reversing with the gradual opening of borders. Passenger Traffic Distribution African airlines passenger The traffic repar on shows that African airlines distribution 2020 globally carried more domes c traffic in 2020, around 43% of the total traffic compared to. The leading Intra Africa carriers in terms of Domes c traffic are airlines like 19% Safair, Ethiopian Airlines, Mango airlines, and Air Domes c 43% Algerie. Those 5 airlines carried 4.8 million passengers on domes c routes during the year. Interna onal Intercon nental traffic represented 57%, breaking down into 19% of 38% Intra-African and 38% of intercon nental passengers. Source: AFRAA /OAG African airlines international passenger destinations per quarter in 2020 Q4 3.7 1.4 1.3 0.9 0.1 0.2 Domes c Q3 2.3 1.0 1.4 0.7 0.1 Intra-africa Europe Q2 1.5 0.6 0.5 0.3 Middle East Q1 7.6 3.5 3.9 2.2 0.8 0.6 0 5 10 15 Million PAX 20 Source: AFRAA /OAG At the con nental level, Europe is the first interna onal des na on of African airlines, represen ng 21% and even exceeding Intra African traffic (19%), domes c excluded. Traffic to Middle-East tended to increase, while traffic to Asia reduced due to Covid. 5
Regional Insights Northern Africa is the leading region in terms of passengers, represen ng 36.6% of the total con nental traffic. In this region, the major part of this traffic is directed outside the con nent, in par cular to Europe: 45% before Covid. This can be explained by the tourism that is developed in the region and a racts Europeans. Middle-East is also a preferred des na on from Northern Africa (22% of the traffic in 2019) due to the strong cultural and economic rela onship between the Maghreb and Middle-East. The Covid19 outbreak caused a year-on-year drop of 61% of the regional traffic. The traffic toward Europe declined by 5%, in favor of Middle-East (+2.6%) and intra-African (+2.1%). The part of the domes c market is around 20%, which is far from the con nental average that is 43%. Traffic repartition - Northern Africa 0.5% 3.1% 3.2% 100% 2.5% 0.2% 0.8% 0.3% 1.2% America 80% 24.2% 29.3% 24.9% 26.2% Asia 60% Middle East 40.6% 34.5% 44.9% 38.3% 40% Europe 10.1% 17.6% 11.5% Intra-africa 20% 11.3% 21.5% 17.3% 15.6% 20.5% Domes c 0% Source: AFRAA /OAG Eastern Africa is the second region in terms of passenger traffic volumes with a share of 22.2%. Domes c and Intra-African traffic are dominant in this region, both represen ng 70% of the traffic in 2020. Europe is the major des na on outside the con nent followed by Asia (12% and 7% respec vely). A er the beginning of the Covid crisis, the share of the domes c market rose by 20%. On the other hand, Intra-African traffic reduced by 10%. Asia also lost some shares, from 8% to 2% from quarter two. Traffic repartition - Eastern Africa 100% 2.6% 2.2% 1.8% 2.9% 2.2% 8.0% 2.2% 6.1% 2.7% 8.4% 7.2% 3.3% 10.4% 12.4% 9.8% 80% 13.2% 18.8% 17.6% 18.5% America 60% Asia 28.2% Middle East 40% 62.7% Europe 59.0% 59.3% 20% 40.6% 0% Q1 Q2 Q2 Q2 Source: AFRAA /OAG 6
In Southern Africa, the traffic drop related to Covid reached 63.6% compared to 2019. In this region represen ng 21% of the con nental traffic, the domes c market is clearly dominant: from 66% before the Covid, the part of domes c traffic increased up to 77% in the last quarter of 2020. On the other end, intra-African traffic reduced, as well as traffic outside the con nent. Traffic repartition - Southern Africa 2.6% 100% 2.7% 2.1% 3.3% 5.6% 3.2% 6.5% 22.9% 15.1% 17.1% 80% 19.7% America 60% Asia Middle East 40% 73.1% 75.5% 76.7% Europe 67.0% Intra-africa 20% Domes c 0% Source: AFRAA /OAG Central and Western African regions both represented 19.7% of the traffic in Africa. Domes c traffic represented around 40% in 2019, Intra-African following with 32%. In 2020, with the Covid situa on, the share of domes c increased, par cularly in the second quarter with 68% with the boarders closing. The share of Europe, the principal des na on outside Africa reduced from 12% in 2019 to 10% in 2020. The traffic to Asia also declined from 5.8% to 2.4%. Traffic repartition - Central and Western Africa 100% 3.1% 1.2% 1.4% 2.1% 4.5% 7.2% 3.6% 7.0% 5.7% 11.5% 8.1% 80% 11.8% 22.1% 30.6% 32.0% America 60% 25.8% Asia Middle East 40% Europe 68.7% Intra-africa 49.0% 51.7% 49.4% Domes c 20% 0% Source: AFRAA /OAG 7
African Airlines Ranking By Traffic (AFRAA Estimations) African airlines ranking by traffic (AFRAA estimations) Ethiopian Airlines EgyptAir Royal Air Maroc Safair Domes c Kenya Airways Intra-africa Air Algerie Air Arabia Maroc Intercon nental Tunisair Mango Airlines Comair 0 1 2 3 4 5 6 Million PAX Source: AFRAA /OAG Routes Ranking By Traffic (AFRAA Estimations) Top 10 domestic routes by passengers carried (AFRAA estimations) Domestic routes ranking Kumasi - Accra East London - Johanesburg Lagos - Port Harcourt Johanesburg - George Johanesburg - Port Elisabeth Nairobi - Mombasa Cape town - Durban Abuja - Lagos Durban - Johanesburg Johanesburg - Cape town 0 0.5 1 1.5 Millions 2 Source: AFRAA /OAG 6 of the 10 busiest domes c routes in Africa are within South Africa showing the strength of this market. Western Africa is represented with 3 routes: Abuja – Lagos, Lagos – Port Harcourt, and Kumasi - Accra. 8
Top 10 Intra - African routes by passengers carried (AFRAA estimations) Intra-African routes ranking Tunis - Casablanca Gaborone - Johanesburg Johanesburg - Bulawayo Accra - Lagos Mi ga - Niamey Saint Denis - Mauri us Entebbe - Nairobi Khartoum - Cairo Harare - Johanesburg Mi ga - Tunis 0 50 100 150 200 250 300 350 Thousands Source: AFRAA /OAG Almost all the regions are represented in this top 10: Southern Africa with 5 routes, 1 route in Eastern Africa, 2 in Northern Africa, and 2 in Western Africa. Top 10 Intercontinental routes by passengers carried (AFRAA estimations) Intercontinental routes ranking Algiers - Paris Cairo - Medina Cairo - Charjah Khartoum - Jeddah Tunis - Paris Cairo - Kuwait Saint Denis - Paris Cairo - Dubai Riyahd - Cairo Jeddah - Cairo Total 0 100 200 300 400 500 600 700 800 Thousands Source: AFRAA /OAG This top 10 shows the strength of traffic between North Africa and Middle East, par cularly from Cairo. Egyptair is the leading carrier on these routes. 9
Airport Ranking By Passengers African airports ranking by passengers 2 Quarter 1 Quarter 2 Quarter 3 Quarter 4 1.5 Million PAX 1 0.5 0 (es ma ons) Addis Ababa Durban Casablanca Johanesburg Lagos Nairobi Cairo Marrakech Tunis Cape-Town Source: AFRAA / ACI AFRICA Johannesburg and Cairo are the busiest airports in Africa. Addis Ababa and Nairobi are also part of the top ranking. The only WCAF airport in this top 10 is Lagos. (Addis Ababa data are es ma ons). A er the severe drop in traffic on Quarter 2, Cairo, Casablanca, Addis, and Nairobi airports saw a rise in traffic. South African airports had to wait for the last quarter of the year to have a no ceable improvement. Lagos and Marrakech on the other hand saw a decrease in traffic during the third quarter. Airport Ranking by Freight Traffic African airports ranking by freight 100 Quarter 1 Quarter 2 80 Quarter 3 Quarter 4 Thousand tons 60 40 20 0 (es ma ons) Lagos Abidjan Addis Ababa Cairo Casablanca Nairobi Dakar Algiers Accra Johanesburg Source: AFRAA / ACI AFRICA Nairobi Jomo Kenya a airport handled more than 330 thousand tons of freight during the year 2020. Cairo followed with 280 thousand tons. Four West Africa are part of the top 10, namely Lagos, Accra, Dakar, and Abidjan. For the majority of these airports, freight traffic strongly rebounded a er the drop of Quarter 2. Nairobi even performed in Quarter 4 compared to Quarter 1. (Addis Ababa data are es ma ons) 10
AIRPORT CHARGES Methodology: A compara ve study based on a single aircra type applies to all airports of more than 500 thousand passengers yearly. The type of aircra chosen is the B737, the most popular aircra type in the region. Following the applied criteria: Aircraft Type B737 MTOW 70.08 Metric Flight Type International Origin & Destination 100 Total Departing Pax 100 Parking Time 2 Hour Boarding bridge time 1 Hour Arrival Time 12:00 Cargo 0 Kilograms African airports ranking by charge index Mahe Island Algiers Mauri us Nairobi Gaborone Antananarivo Lilongwe Entebbe Maputo Windhoek Addis Ababa Dar Es Salaam Saint Denis Cairo Kigali Johannesburg Abidjan Libreville Harare Accra Lagos Brazzaville Dakar Ouagadougou Cotonou Kinshasa Khartoum Douala Ilha Do Sal Bamako Malabo Tunis Conakry Casablanca Luanda Lusaka 0 200 400 600 800 1000 1200 Source: AFRAA / IATA ACIC Index Lusaka has the highest level of charges while Mahe Island has the lowest among the selected airports. Some of the busiest airports in Africa like Johannesburg, Addis, Algiers are among the least expensive. This indicates that lowering the airport charges can have a posi ve effect on traffic. 11
INTRA-AFRICAN CONNECTIVITY Methodology: We calculate the total number of possible Intra-African connec ons between inbound and outbound flights on 20 important African hubs in 2020. The rules selected for the computa on are as follows: Ÿ Single connec ons only to/from the chosen airports, Ÿ Minimum Connec on Time from OAG table, Ÿ Maximum Connec on Window of 6 hours The Covid19 situa on drama cally affected connec vity within Africa with a sharp drop of 97% during the second quarter. Un l the end of 2020, the level of intra-African connec vity was 90% under the level of quarter 1. Intra-African connectivity growth by quarter Q1 (base) Q2 Q3 Q4 0 -0.5 -1 -97% -95% -90% -1.5 Source: AFRAA / OAG Intra-African connectivity index 2020 Airport Index 2020 Johannesburg 12527 Addis Ababa 9744 Nairobi 4548 Algiers 1829 Cairo 1163 Zanzibar 1162 Lome 744 Abuja 648 Casablanca 632 Abidjan 493 Kigali 409 Accra 364 Antananarivo 195 Khartoum 184 Luanda 178 Mauri us 131 Dakar 128 Libreville 125 Entebbe 114 Ouagadougou 107 Lilongwe 100 Source: AFRAA / OAG Johannesburg remains the most connected airport, even if severely affected by the lockdown measures. Mauri us completely ceased opera ons during Quarters 2 and 3, bringing connec vity level to zero. Airports like Madagascar, Lome, and Khartoum saw a quick improvement from the beginning of Quarter 3, benefi ng from less strict restric ons. 12
AFRICAN COUNTRIES CONNECTIVITY AND OPENNESS In 2020, the regional traffic represented only 19% of African carriers' opera ons. Furthermore, the Covid19 situa on depleted the Intra African connec vity that was already low. It is important to facilitate travels within Africa by removing the barriers that prevent travels within the con nent. African airports ranking by passengers Top 10 best and worst connected countries in Africa Ethiopia Kenya Egypt South Africa Morocco Cote D'Ivoire Ghana Nigeria Cameroon Togo Seychelles South Sudan Guinea-Bissau Botswana Burundi Djibou Libya Lesotho Eritrea Eswa ni Source: AFRAA / AfDB Among the 54 countries in the African con nent, 13 have direct flights to more than 20 African countries. Ethiopia and Kenya lead with 30 direct flights and more to other countries within Africa. However, the intra-African connec vity remains poor. African airlines should take the opportunity to develop their Intra-African Network, especially in this period where the EU has limited travels to Europe. Connectivity between African regions Central Africa Eastern Africa Northern Africa Southern Africa Western Africa Central Africa 64% 16% 34% 15% 33% Eastern Africa 45% 16% 21% 7% Northern Africa 69% 4% 41% Southern Africa 57% 3% Western Africa 65% Source: AFRAA / AfDB The table above represents the percentage of direct connec ons exis ng between all the countries within a region or toward another African region in rela on to the total number of possible connec ons. While intra-connec vity is rela vely high within Northern Africa (more than 69%), we can see that connec vity across regions remains poor. The highest rate is between Northern and western Africa with only 41%. Southern Africa is the less connected with other regions, par cularly with the western (only 3%). Visa Openness within Africa 2020. 13
Visa Openness within Africa 2020 No Visa Visa on arrival Visa required Seychelles 53 0 Benin 53 0 Gambia 53 0 Ghana 24 28 1 Senegal 22 31 0 Mauri us 27 21 5 Rwanda 18 35 0 Uganda 18 34 1 Kenya 18 33 2 Nigeria 17 35 1 Cape Verde 16 36 1 Guinea-Bissau 13 40 0 Togo 14 38 1 Mozambique 9 44 0 Mauritania 8 45 0 Tanzania 16 25 12 Ethiopia 2 51 1 Somalia 0 53 0 Comoros 0 53 0 Madagascar 0 52 1 Djibou 0 52 1 Zimbabwe 17 10 26 Guinea 22 0 31 Cote d'Ivoire 22 0 31 Burkina Faso 16 11 26 Sierra Leone 13 17 23 Tunisia 21 0 32 Mali 20 2 31 Malawi 15 11 27 Zambia 14 11 28 Niger 18 0 35 Botswana 17 0 36 Eswa ni 17 0 36 South Africa 17 0 36 Lesotho 16 0 37 Chad 14 1 38 Liberia 14 0 39 Central Africa 14 0 39 Angola 10 7 36 Namibia 13 0 40 Gabon 9 0 44 Congo 5 8 40 Sao Tome and Principe 8 0 45 Cameroon 7 0 46 Morocco 6 0 47 Burundi 6 0 47 Algeria 6 0 47 Congo Democra c 4 3 46 South Sudan 0 5 48 Egypt 0 4 49 Eritrea 1 2 50 Sudan 02 51 Libya 10 52 Equatorial Guinea 10 52 0 10 20 30 40 50 60 Source: AFRAA / AfDB In terms of Visa openness within, more and more countries are opening their borders to other African countries. In 2010, The Gambia joined Seychelles and Benin in the group of totally Visa- free countries. Visa on arrival is adopted by 32 countries across Africa. Unfortunately, in 2020 46% of Africans s ll need a visa to travel to another African country compared to 50% in 2019, which is a small improvement. 14
ANNEX: GLOSSARY ACIC: Aviation Charges Intelligence Center AFDB: African Development Bank AFRAA: African Airlines Association ICAO: International Civil Aviation Organization IATA: International Air Transport Association RPK: Revenue Passenger Kilometers YoY: Year on Year 15
CONTACTS African Airlines Association P.O. Box 20116 00200 GPO Nairobi, Kenya GSM: +254 20 2320144 | +254 20 23 20148 Cell: +254 (0)722 20978 | +254 (0)735 337669 Website: www.afraa.org
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