News & Events
African airlines under pressure
Date: 13.10.2015
Southern African airlines are battling slackening demand and the evaporation of already slender profit margins, mirroring lacklustre economic growth in many states across the region, said Aasa ceo Chris Zweigenthal in his opening address at the 2015 Airlines Association of Southern Africa annual assembly held on October 9 at Fancourt, George.
As a result, said Chris, their ability to create and support jobs and stimulate economic growth is under threat. “Our industry – specifically in our region – is staring down the barrel of a gun. While airlines in the rest of the world are seeing rebounding growth and healthier 4% average profit margins, most African airlines have been unable to follow suit and remain stuck in an on average 0,8% (USD1,59 per passenger) profit margin band this year.”
Chris said it is clear that this performance is hardly the basis for a sustainable industry. “What is missing is an alignment of governments’ policies and strategies to let airlines safely, efficiently and affordably carry more people and goods on more routes linking more towns and cities, more frequently, across the continent.”
