African companies in the eye of the storm

The evaporation of international air traffic to the African continent over several months will leave its mark. All in all, even with the upturn in the second half of 2020, the region is unlikely to have attracted more than a handful of flights. 45 million passengers over the yearagainst 155 million in 2019. Worse still, a return to this level in 2019 is unlikely before the end of the year. 2023according to the International Air Transport Association (IATA). At issue: the restrictions on entry to the European Union for non-essential travel, which persist for nationals from all over the continent, with the exception of Rwanda.

La resumption of domestic flightsThe emerging economic crisis is not sufficiently robust to spare a sector that is vital to the continent's economy: air transport is Africa's most important economic sector. the heart of the travel industry's value-added chain and tourism. These two sectors contribute 169 billion dollars to the continent's economy and account for 7.1 % of its GDP, while providing a livelihood for nearly 25 million people. Last spring, IATA sounded the alarm, estimating that African airlines would lose 4.2 billion dollars by 2020.

ensure that we survive this global crisis and emerge stronger from it

Africa's leading and most successful airline, Ethiopian AirlinesThe company itself said it had been badly affected. Its chairman, Tewolde Gebremariam, had revealed losses of 550 million dollars between January and April 2020 and had decided to fight against adversity by adapting the company to the needs of the health crisis: " we will focus on the transport of goodsThis is a segment that is doing well because there is an urgent need for medical supplies throughout the world. We are trying to converting our passenger aircraft into cargo planesTo do this, we are in the process of removing the seats from the cabins to use them for freight transport, to ensure that the cabins are as comfortable as possible, and to reduce the number of passengers. surviving this global crisis and emerge strongers", he declared last spring.

No fewer than 25 aircraft from the Ethiopian Airlines fleet were converted to cargo in the following months to carry the huge need for health equipment delivered to Africa. The evolution of the crisis has proved the company's CEO right, since in January, bucking the international trend, cargo demand from African airlines rose by 22.4 % compared with the same period in 2019, driven by Africa-Asia trade.

That doesn't stop the picture from remaining bleak: according to the most recent figures compiled by the International Civil Aviation Organization (ICAO), revenue losses for African airlines amounted to 14 billion over the year. According to AFRAA, the Association of African Airlines, support from African countries of nearly 2.5 billion dollars is needed to make up for the losses. But only 311 million euros have been pledged by the governments of Rwanda, Senegal, Côte d'Ivoire, Burkina Faso and several other international organisations to help turn the sector around.

Four companies bankrupt, merger in sight

In the meantime, the damage has been done: four African companies, including the emblematic South African Airways and Namibia's national carrier, Namibia Airlines, have made bankruptcyand two others are in receivership. The losses of Kenya Airways, which was already loss-making, tripled to 329.6 million dollars and the airline was forced to look for new partners as Air France-KLM terminated the joint venture between the two airlines in September.

Even Ethiopian Airlines, which provided a large part of the continent's logistical transport and many repatriation flights during the health crisis, is suffering. Located at at the heart of the East African hub of Addis Ababayet she feels still sufficiently robust to dare think about taking over South African Airways. This could pave the way for a concentration of the sector as a result of the crisis.

For the time being, African airlines are focusing on how to overcome the health crisis. Kenya Airways and Ethiopian Airlines are currently testing a new Covid digital passport developed by the African Centres for Disease Control and Detection to help passengers and airport staff authenticate test certificates before departure. This "Trusted Travel Pass could soon be deployed in all the member countries of the African Union with a view to standardising air travel protocols across the continent. And to give a new lease of life to air transport on the continent.