IATA predicts a gloomy picture for Nigeria and other African carriers in 2019

According to the prediction of The International Air Transport Association (IATA) Nigeria and other African air carriers should expect a gloomy picture in 2019 stating that they should be ready for a lost to the tune of $300 million (an estimate of N109,350bn) in the aviation industry in Africa.

IATA is an international association which represents about 290 different airlines representing 82percent of the world’s airline industry with a net profit which is predicted to be $35.5 billion in the year 2019. They recorded $32.3 billion in net profit in the year 2018.

The net profit for carriers indifferent continents as predicted by IATA for 2019 are as follow; North America($16.6bn), Europe ($7.4bn), Asia-Pacific ($10.4bn), Middle East ($800m) and Latin America ($700m).

The total revenue expected in2019 stood at $885bn which is 7.7 percent increment on the $821bn revenue generated in 2018. The number of passengers expected for the year 2019 which increased from 4.34bn to 4.59bn while cargo tones will rise from 63.7m in 2018 to65.9m in 2019.

The forecast for Africa shows a net loss of $3.51m which is -2.1% net margins in revenue which means is a cause for alarm for the Nigerian aviation industry which is the biggest economy in Africa.

In terms of aviation, Africa is the weakest region in the world and this has been the situation in the past four years. Although there is an improvement in performance in the industry, but it is painfully slow as a result of poverty and poor economic development.

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