The International Air Transport Association (IATA) has revealed that the aviation industry took a severe hit during the 2020 pandemic and is still reeling from the losses suffered, News About Nigeria reports.
AITA’s Regional Vice-President for Africa and the Middle East, Kamil Alawadhi, disclosed this at the 55th AFRAA Annual General Meeting, stating that the pandemic crippled flight operations globally.
He noted that in 2020, Africa lost approximately $7.7 billion in the aviation sector due to the implementation of governmental restrictions aimed at curbing the spread of COVID-19, resulting in decreased air traffic.
He also estimated that Nigeria lost about N21 billion monthly during the outbreak, adding that, according to analysts, it would take until 2024 for the situation in the aviation sector to improve and return to the level it was in 2019.
He, therefore, cautioned the government against viewing the aviation sector as a cash cow, maintaining that their orientation about the sector must change if it is to harness its growth potential.
He also urged the government to avoid imposing higher fees, levies, carbon taxes, or new taxes on air transport, trade, or tourism, stating that these would only hamper economic development and limit the opportunities for job creation and income generation.
According to him, high costs lead to high prices, which reduce demand and growth in a price-elastic market, ultimately affecting connectivity negatively.
He encouraged governments not to deviate from the policies on charges and infrastructure outlined by the International Civil Aviation Organization, stressing the need for the government to consult with airlines to establish a fair and cost-effective operational environment that will, in turn, promote a more interconnected continent.
