IATA – Tech | Business | Economy https://techeconomy.ng Tech | Business | Economy Tue, 09 Jun 2026 06:44:18 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0 https://techeconomy.ng/wp-content/uploads/2025/06/cropped-256Px-32x32.png IATA – Tech | Business | Economy https://techeconomy.ng 32 32 Africa’s Hub Airlines Gain Traffic Diversions, but Fuel Costs Threaten Profitability https://techeconomy.ng/africas-hub-airlines-gain-traffic-diversions-but-fuel-costs-threaten-profitability/ https://techeconomy.ng/africas-hub-airlines-gain-traffic-diversions-but-fuel-costs-threaten-profitability/#respond Tue, 09 Jun 2026 06:44:18 +0000 https://techeconomy.ng/?p=183077 Africa’s hub carriers are seeing the strongest growth in traffic as it re-routes to avoid the Middle East, says the International Air Transport Association.

The IATA latest financial outlook for the global airline industry notes, however, that the region’s profitability is expected to weaken as a result of cost-side vulnerabilities, particularly regarding the supply and price of fuel.

Combined with typically lower aircraft utilization and weaker balance sheets, these factors will cap the revenue upside from shifting traffic flows, resulting in a lower expected net profit margin in 2026.

Any gains are likely to be concentrated among the limited number of hub carriers with established connectivity linking Africa to Europe and Asia. Smaller and more fragmented operators are expected to bear the brunt of the challenging operating environment.

Structural constraints continue. Weak infrastructure, fragmented airspace, and limited cross-border coordination reduce network efficiency and raise operating costs. In addition, limited financial capacity and access to capital restrict fleet expansion and network development.

Regional Roundup: Africa

  Net Profit Net Margin Profit per Passenger Demand (RPK) Capacity (ASK)
2026 (f) $0.1b 0.2% $0.40 10.0% 7.7%
2025 (e) $0.3b 1.6% $2.10 9.8% 8.7%

Global space

The IATA’s report shows a halving of profitability as a result of war-related Middle East disruptions and high fuel prices.

The regional landscape, however, is highly differentiated. At the geographic center of the Middle East war, airlines in the Middle East are expected to collectively fall into the red with weak demand and operational disruptions. All other regions are expected to deliver profits, but at reduced levels from previous projections. Highlights include:

  • Airlines are expected to achieve a combined total net profit of $23.0 billion in 2026, which is roughly half the previously projected $41 billion. It is also roughly half the $45 billion net profit estimate for 2025.
  • The net profit margin is expected to be 2.0% in 2026, roughly half the previously projected 3.9%. It is also less than half the 4.2% estimate for the 2025 net profit margin.
  • Net profit per passenger transported is expected to be $4.50, half the $9.10 achieved in 2025.
  • Operating profit in 2026 is expected to be $48.0 billion (down from $76.4 billion in 2025) for a net operating margin of 4.1% (down from 7.2% in 2025).
  • Return on invested capital (ROIC) is expected to be 4.3% (down from 6.6% in 2025). This is below the 8.5% estimated weighted average cost of capital. The gap highlights again the structural weakness of the airline industry where profitability shocks quickly erode capital efficiency.
  • Total industry revenues are expected to reach $1.165 trillion in 2026 (up 9.4% on the $1.065 trillion in 2025).
  • The passenger load factor is forecast to continue to set record highs with airlines expected to fill 84.0% of all seats over the year. That is an improvement on 83.5% in 2025.
  • Passenger numbers are expected to reach 5.1 billion in 2026 (up 2.4% on 2025).
  • Cargo volumes are expected to reach 71.7 million tonnes in 2026 (up 0.2% on 2025).
Willie Walsh IATA
Willie Walsh, director general, IATA

“War-related disruptions in the Middle East and rising fuel costs have shifted the outlook for airlines to the worse. Globally, airlines are expected to see profitability halve compared to 2025. Profits will shrink from $45 billion in 2025 to $23 billion this year. And margins will shrink from 4.2% to 2.0%. All airline bottom lines are suffering from the rapid 70% rise in jet fuel prices. Some of the additional cost is being recuperated by adjusting prices and improving efficiency, but it will not be sufficient to maintain profitability at the previous year’s level. Smaller carriers that started the year with weak balance sheets are certainly struggling. At the regional level, all are in the black but with sharply reduced financial performance, with the exception of the Middle East. The Gulf carriers face operational uncertainty following a near complete shutdown of airspace at the outbreak of the war. These carriers are doing an amazing job maintaining connectivity, but major financial impacts are unavoidable,” said Willie Walsh, IATA’s Director General.

Even in the best of times, the airline industry as a whole suffers from low margins and returns below the cost of capital. The oil price shock has tested airline financial resilience as net margins have been squeezed to 2.0% globally.

“Airlines are bearing the brunt of the fuel price shock. While air fares are rising, airlines are still absorbing part of the hike in their bottom lines. Net profit per passenger is expected to fall to $4.50, half of what it was last year. Under the circumstances, that shows resilience. But it won’t even buy you a hot dog at most of the FIFA World Cup venues and it does not leave much of buffer should other costs or taxes start rising,” said Walsh.

Outlook Drivers

Overall revenues are expected to grow by 9.4% to $1.165 trillion. Revenue per available tonne kilometer (ATK) is expected to grow by 8.8%.

Outside of the extraordinary period of the COVID recovery, an increase of this magnitude only occurred recently in 2008, when the jet fuel price rose by 40% year-on-year, and in 2010, following the 2009 global financial crisis and subsequent jump in the price of jet fuel.

Despite significant improvements, revenue growth is expected to lag operating expense growth of 13% to $1.117 trillion, halving industry-wide net profitability to $23.0 billion in 2026.

Major macro-economic factors impacting airlines are expected to deteriorate in 2026 with GDP growth reducing to 2.5% (from 3.4% in 2025), inflation rising to 5.0% (from 4.1% in 2025), and world trade growth falling to 1.9% (from 4.6% in 2025).

Revenue

  • Passenger ticket revenues are expected to reach $839 billion in 2026 (+9.2% on $768 billion in 2025). Considering this outpaces expected demand growth of 2.1% (measured in RPK or revenue passenger kilometers), air fares are rising in efforts to recoup some of the costs of the oil price shock. Passenger ticket yields are expected to grow by 7% and load factors are expected to set a new record high of 84.0%.
  • Ancillary and other revenues are projected to rise by 12.6%, reaching $165 billion. Rapid growth of ancillary revenue is largely reflecting airline strategies to maximize customer revenues in the face of the oil price shock. For the first time since 2019, ancillary revenues will be a larger revenue contributor than air cargo.
  • Cargo revenue is forecast to reach $162 billion in 2026 (up 7.2% on $151 billion in 2025). With cargo growth measured in cargo tonne kilometers (CTK) expected to expand by just 0.7% in 2026 (and just 0.2% in terms actual cargo uplifted), revenue growth is primarily driven by airlines recouping the higher costs from the fuel price shock. Cargo yields are expected to grow by 6.5% in 2026 (after three consecutive years of decline).

Costs

Fuel costs are expected to rise by nearly 40% from $252 billion in 2025 to $350 billion in 2026. This is based on an expected average price of crude oil at $95/barrel (Brent) for the year (up 37% from $69 in 2025).

Jet fuel prices are expected to average $152/barrel for the year (up almost 70% on $90 in 2025). The crack spread (premium for jet fuel over Brent crude oil) is expected to average $57/barrel, an historic high.

Globally, airlines have hedged roughly one third of their expected fuel consumption for 2026, which helps smooth short-term cost volatility but does not eliminate exposure to sustained price increases.

Furthermore, many airlines hedge against movement in crude oil prices, as this market is more liquid, which leaves them exposed to increases in the crack spread.

Total fuel consumption in 2026 is expected to remain unchanged from 2025, at 104 billion gallons. The rise in the price of jet fuel is therefore solely responsible for lifting the share of jet fuel in total operating expenses to 31.4% in 2026, up from 25.4% in 2025.

Airlines also bear the cost of compliance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), estimated to be between $1.2-1.6 billion, to offset CO2 emissions in the 28.8 Mt-81.5 Mt range.

The additional cost of airline purchases of Sustainable Aviation Fuel (SAF) is expected to reach $4.3 billion in 2026 for an anticipated volume of 2.4 million tonnes of SAF being available (0.8% of total fuel consumption).

This is slightly lower than previous estimates as the spread between jet fuel and SAF has dropped due to the appreciation of conventional fuel prices.

Non-fuel costs are forecast to be $767 billion (+4.0% on $737 billion in 2025), of which labor costs are the largest component ($271 billion, +4.0% on 2025). The total labor force directly employed by airlines has reached 3.33 million (1.0% growth from 2025).

Productivity per employee (measured in ATK/employee) has declined slightly (-0.4%) as airlines prioritize operational resilience in the face of disruptions, particularly in light of a larger share of newly recruited staff post-pandemic.

The shortage of renewal aircraft also generates additional costs. Aircraft lease rates have risen to record levels, reflecting limited asset availability and strong demand from airlines seeking to expand or renew fleets. The older fleets that airlines are operating require more maintenance, raising costs in this area.

A weaker US dollar further impacts the outlook. Last year, the US dollar depreciated by around 10% against most of its trading partners’ currencies, and this year it is likely to weaken by around 5% for the year (having lost approximately 2.5% by the end of April).

At the margin, this is supportive of the global business cycle as well as of non-US dollar-based airlines.

All invoices, notably fuel, and all debt denominated in US dollars become cheaper for airlines operating in currencies that have appreciated against the dollar.

Risks and Constraints

Supply chain challenges continue. Despite a gradual recovery in deliveries, supply conditions remain structurally constrained.

Aircraft production is increasing but not at a sufficient pace to close the gap created during the pandemic.

Deliveries remain below pre-COVID peak levels and are therefore still unable to shrink the accumulated shortfall.

At the same time, demand for new aircraft remains strong, with orders continuing to exceed deliveries. As a result, the backlog reached 18,100 in May 2026, up from 17,000 in 2024 – representing over 50% of the active fleet.

Airlines have so far been able to absorb a significant share of the missing capacity through a combination of operational and commercial adjustments. Airlines have extended the life of existing aircraft, increased daily utilization and operated at higher load factors, allowing them partially to offset the impact of delayed deliveries.

The shortage not only raises costs but also caps growth. Notably, the lack of new aircraft halted gains in fuel efficiency in 2024 and 2025 for the first time in history, eliminating the airline industry’s regular progress on reducing CO2 emissions. In the current environment, with additional geopolitical disruptions affecting global supply chains, the risk is that this imbalance becomes entrenched.

Elections bring uncertainty to the macro-economic outlook. More than 40 countries are expected to hold (or have already held) national elections in 2026, representing over 1.5 billion people worldwide and making it another pivotal year for democracy across the globe.

Among the most closely watched elections are the US midterm elections in November, Brazil’s general election in October and Israel’s legislative election in October.

Election outcomes will determine responses to inflation, trade tensions, as well as fiscal and monetary policy and more, as the energy crisis is reshaping government priorities across the world.

Stagflation, the combination of slow growth and high inflation, would test industry resilience, in particular the capability of travelers to pay higher fares for an extended period of time.

IATA polling gives cause for near-term confidence with 49% of respondents indicating they expect to pay more for travel over the next 12 months than they did over the past 12 months (with 43% saying they expected to spend about the same).

While 83% indicated that they were more cost conscious, a similar number (86%) also said that they expect the price for transport to rise and fall reflecting developments in the oil price.

Infrastructure constraints continue to impact the industry with rising costs and limits on growth. With insufficient infrastructure capacity available to meet demand, the war in the Middle East has become a particular concern for airport slot allocation rules.

Rules enabling flexibility to avoid penalizing airlines are needed when airspace or airport closures/restrictions have limited the ability to use allocated airport slots.

Similarly, economic regulators must ensure that any reduction in demand due to the war and its impacts are met with efficiency gains instead of rate increases.

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IATA: Africa Air Travel Demand Up 4.8% in Feb 2026 https://techeconomy.ng/iata-africa-air-travel-demand-up-4-8-in-feb-2026/ https://techeconomy.ng/iata-africa-air-travel-demand-up-4-8-in-feb-2026/#respond Tue, 31 Mar 2026 10:27:50 +0000 https://techeconomy.ng/?p=178757 The International Air Transport Association (IATA) reports that Africa’s passenger air travel demand rose 4.8% in February 2026.

Quick Read:

  • Total demand, measured in revenue passenger kilometers (RPK), was up 6.1% compared to February 2025. Total capacity, measured in available seat kilometers (ASK), increased 5.6% year-on-year. The load factor was 81.4% (+0.3 ppt compared to February 2025), the highest February figure on record.
  • International demand rose 5.9% compared to February 2025. Capacity was up 5.3% year-on-year, and the load factor was 80.5% (+0.5 ppt compared to February 2025).
  • Domestic demand increased 6.3% compared to February 2025. Capacity increased 6.2% year-on-year. The load factor was 82.8% (+0.1 ppt compared to February 2025).

“With an RPK expansion of 6.1%, February was a strong month, showing that the fundamentals for demand growth were in place for a positive year. However, without knowing the length and intensity of the war in the Middle East, it is impossible to quantify the full impact that it will have on airline prospects. But some things are already clear. Fuel costs have risen sharply. With tight capacity and thin margins, air fares are already rising. Capacity deployment is also adjusting, particularly for traffic to, from, or through the Middle East, or in areas where fuel supply is an issue. Capacity growth scheduled for March, for example, has eased to 3.3% from earlier predictions of more than 5%,” said Willie Walsh, IATA’s director general.

Air passenger market in detail 

IATA - Africa airline passengers February 2026

Regional Breakdown – International Passenger Markets 

International RPK growth reached 5.9% in February compared to a year ago, with growth particularly strong in Latin America.

Asia traffic benefited from the Lunar New Year travel demand. Traffic between Europe and Asia was especially robust (+14%), particularly between Asia and Spain and Italy.

Asia-Pacific airlines achieved an 8.6% year-on-year increase in demand. Capacity increased 7.3% year-on-year, and the load factor was 86.6% (+1.0 ppt compared to February 2025).

European carriers had a 5.0% year-on-year increase in demand. Capacity increased 4.5% year-on-year, and the load factor was 75.6% (+0.4 ppt compared to February 2025).

North American carriers saw a 5.0% year-on-year increase in demand. Capacity increased 2.4% year-on-year, and the load factor was 80.9% (+2.0 ppt compared to February 2025).

Middle Eastern carriers saw a 0.9% year-on-year increase in demand. Capacity increased 3.8% year-on-year, and the load factor was 79.6% (-2.2 ppt compared to February 2025).

Latin American airlines saw a 13.5% year-on-year increase in demand. Capacity climbed 9.3% year-on-year. The load factor was 85.0% (+3.1 ppt compared to February 2025).

African airlines saw a 4.8% year-on-year increase in demand. Capacity was up 6.6% year-on-year. The load factor was 74.5% (-1.3 ppt compared to February 2025).

Domestic Passenger Markets 

Domestic RPK rose by a robust 6.3%, driven by strong demand in Brazil and China. The capacity increase (+6.2%) was close to matching demand and the load factor was basically steady at 82.8%.

Air passenger market in detail - February 2026

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5.7% Air Passenger Demand Growth in November 2025 – IATA https://techeconomy.ng/5-7-air-passenger-demand-growth-in-november-2025-iata/ https://techeconomy.ng/5-7-air-passenger-demand-growth-in-november-2025-iata/#respond Mon, 12 Jan 2026 05:15:02 +0000 https://techeconomy.ng/?p=174004 The International Air Transport Association (IATA) has released data for November 2025 global passenger demand.

Key highlights of the report are as following:

  • Total demand, measured in revenue passenger kilometers (RPK), was up 5.7% compared to November 2024. Total capacity, measured in available seat kilometers (ASK), increased 5.4% year-on-year. The load factor was 83.7% (+0.3 ppt compared to November 2024), a record high for November.
  • International demand rose 7.7% compared to November 2024. Capacity was up 7.1% year-on-year, and the load factor was 84.0% (+0.4 ppt compared to November 2024).
  • Domestic demand increased 2.7% compared to November 2024. Capacity was up 2.7% year-on-year. The load factor was 83.2% (unchanged compared to November 2024).

“November 2025 saw continued strong demand for air travel with year-on-year growth of 5.7%. Load factors reached a new record of 83.7% for the month as airlines continued to satisfy growing passenger demand amid continuing capacity constraints stemming from challenges in the aerospace supply chain. The new year’s resolution for the manufacturing sector must be to increase production to meet the needs of their airline customers. The backlog of more than 17,000 aircraft orders that we reached in 2025 must be reduced in 2026,” said Willie Walsh, IATA’s Director General.

Air passenger market in detail – November 2025      
  World   November 2025 (year-on-year, %)
  share, %1   RPK ASK PLF (%-pt) PLF (level)
TOTAL MARKET 100.0   5.7 5.4 0.3 83.7
Africa 2.2   12.6 9.1 2.3 75.1
Asia Pacific 33.5   7.8 6.8 0.7 85.4
Europe 26.7   6.1 5.4 0.5 86.0
Latin America and Caribbean 5.3   3.9 3.9 -0.1 84.2
Middle East 9.4   9.5 9.2 0.2 81.5
North America 22.9   0.1 1.4 -1.1 80.3
1 % of industry RPK in 2024            

Regional Breakdown – International Passenger Markets 

International RPK growth was a healthy 7.7% in November year-on-year. The international load factor, at 84.0%, was also a November record high. Compared to October, growth was slightly down in all regions except Africa.

Asia-Pacific airlines achieved a 9.3% year-on-year increase in demand. Capacity increased 8.7% year-on-year, and the load factor was 85.8% (+0.5 ppt compared to November 2024). Geopolitical tensions led to traffic between China and Japan slowing to single-digit growth for the first time in 2025.

European carriers had a 6.8% year-on-year increase in demand. Capacity increased 6.1% year-on-year, and the load factor was 85.6% (+0.5 ppt compared to November 2024).

North American carriers saw a 4.0% year-on-year increase in demand. Capacity increased 4.2% year-on-year, and the load factor was 81.0% (-0.1 ppt compared to November 2024). Looking at total traffic, North America has seen 10 consecutive months of year-on-year decline in load factor.

Middle Eastern carriers saw a 9.6% year-on-year increase in demand. Capacity increased 9.2% year-on-year, and the load factor was 81.4% (+0.3 ppt compared to November 2024).

Latin American airlines saw a 4.4% year-on-year increase in demand. Capacity climbed 4.7% year-on-year. The load factor was 83.9% (-0.2 ppt compared to November 2024).

African airlines were the stand-out performer, with an 11.2% year-on-year increase in demand. Capacity was up 8.5% year-on-year. The load factor was 74.3% (+1.8 ppt compared to November 2024).

Domestic Passenger Markets 

Domestic RPK rose 2.7% over November 2024 and load factor was steady at 83.2% on the back of a 2.7% capacity expansion. Brazil and India were the fastest-growing markets. Domestic U.S. traffic was the only major market to see a fall in demand, perhaps due to the government shutdown.

  World   November 2025 (year-on-year, %)
  share, %1   RPK ASK PLF (%-pt) PLF (level)
Domestic 38.2 2.7 2.7 0.0 83.2
Dom. Australia 0.8 2.1 5.7 -3.0 82.6
Dom. Brazil 1.1 8.3 7.4 0.7 85.9
Dom. China P.R. 11.3 6.3 5.2 0.9 82.9
Dom. India 1.7 7.7 8.7 -0.9 88.5
Dom. Japan 1.0 3.6 0.3 2.8 87.1
Dom. United States 14.4 -1.8 0.2 -1.6 79.6
1 % of industry RPK in 2024            
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IATA: Over 90% of $1.2 Billion in Airline Funds Trapped in Africa https://techeconomy.ng/iata-over-90-of-1-2-billion-in-airline-funds-trapped-in-africa/ https://techeconomy.ng/iata-over-90-of-1-2-billion-in-airline-funds-trapped-in-africa/#respond Fri, 12 Dec 2025 08:49:12 +0000 https://techeconomy.ng/?p=172554 A marginal improvement of $100 million has been made since last reported in April 2025. Out of total blocked funds reported, 93% are trapped in Africa and Middle East (AME).

IATA called on governments to lift all restrictions on currency repatriation and allow airlines to access their revenues in U.S. dollars from ticket sales, cargo sales and other activities, as guaranteed in bilateral air service agreements and treaty obligations.

Restrictions include burdensome or inconsistent procedures to obtain repatriation approval, delays in obtaining approval, shortage or lack of foreign exchange or other limitations imposed by governments or central banks.

“Airlines need reliable access to their revenues in U.S. dollars to keep operations running, pay their bills, and maintain vital air connectivity. Governments have committed to unfettered repatriation of funds in bilateral agreements. With low margins and significant dollar denominated costs, airlines depend on governments fulfilling that commitment. It is also in the interest of governments to foster the economic catalyst that airlines provide by connecting their economies globally. That’s why we urge governments to facilitate the efficient repatriation of airline funds and prioritize this in foreign exchange allocations, even when currency is in short supply,” said Willie Walsh, IATA’s director general.

Ten countries are responsible for 89% of blocked funds

Ten countries across Africa, the Middle East, and South Asia account for 89% of the total blocked funds, amounting to USD 1.08 billion.

airlines funds trapped in 2025
*XAF Zone (Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, Gabon)

Country Highlights

For the first time, Algeria sits at the top of the list of blocked funds countries. Significant increases have been reported due to a new approval requirement by the Ministry of Trade, adding to the already burdensome documentation requirements. IATA urges the government of Algeria to remove unnecessary processes and requirements for airlines.

While blocked funds in XAF Zone have slightly decreased since last reported in April 2025 from USD 191 million, airlines continue to face repatriation challenges despite submission of required documentation. We call on the BEAC to streamline the internal three-step validation process and improve processing times to continue clearing the backlog.

AME region accounts for 93% of total blocked funds across 26 countries, at USD 1.12 billion as of end October 2025.

“Political and economic instability are key drivers of currency restrictions across Africa and the Middle East, resulting in large sums of blocked funds. We recognize that allocation of foreign exchange is a difficult policy decision, but the long-term benefits for the economy and jobs outweigh short-term financial relief,” added Walsh.

Transparency

To provide greater transparency on the issue of blocked funds, IATA launched a web page to track progress quarterly, provide background information, and highlight developments.

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Nigeria Handles 195,700 Tonnes of Air Cargo, Strengthening Global Trade Links https://techeconomy.ng/nigeria-handles-195700-tonnes-of-air-cargo-strengthening-global-trade-links/ https://techeconomy.ng/nigeria-handles-195700-tonnes-of-air-cargo-strengthening-global-trade-links/#respond Sat, 04 Oct 2025 08:00:00 +0000 https://techeconomy.ng/?p=168708 Nigeria’s aviation industry is not only moving people; it is powering commerce. According to the latest Value of Air Transport to Nigeria report by Oxford Economics for IATA, the country’s airports handled 195,700 tonnes of air cargo in 2023, underscoring the sector’s pivotal role in trade, supply chains, and economic growth.

Air Cargo: The Silent Engine of the Economy

According to the report, while passenger flights often capture headlines, cargo operations are the silent engine that keeps businesses running. From perishable agricultural exports to critical medical supplies and high-value electronics, air cargo connects Nigeria to global markets with speed and reliability.

“Cargo carried by air represents only a fraction of Nigeria’s overall trade volume, but it accounts for goods of significant value,” the report noted. This means while ships carry bulk cargo, aviation moves the products that demand precision, speed, and security.

Trade and E-Commerce Boom

With Nigeria’s growing digital economy, air freight is also becoming essential for e commerce.

Logistics companies and airlines are increasingly partnering to meet rising consumer demand for fast deliveries. Analysts say this trend will only intensify as more Nigerians shop online and SMEs export to regional and global markets.

Regional Connectivity and Beyond

Nigeria’s geographic position offers natural advantages as a logistics hub for West and Central Africa.

Its 24 commercial airports and growing airline base provide the infrastructure needed to expand cargo operations further.

With investment in specialized cargo terminals, cold storage, and digital tracking systems, Nigeria could capture a larger share of Africa’s booming trade flows.

Unlocking More Value

Stakeholders believe targeted policies can unlock even greater value from air cargo. Lowering tariffs on aviation equipment, expanding free trade zones, and harmonizing customs processes across borders are seen as game-changers.

As the report concludes: “Air cargo is more than freight, it is an enabler of trade, jobs, and development. For Nigeria, each tonne of goods shipped by air strengthens its role as Africa’s economic powerhouse.”

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IATA: Air Passenger Demand Grows 4.6% in August https://techeconomy.ng/iata-air-passenger-demand-grows-4-6-in-august/ https://techeconomy.ng/iata-air-passenger-demand-grows-4-6-in-august/#respond Wed, 01 Oct 2025 23:04:00 +0000 https://techeconomy.ng/?p=168593 Global air travel demand continued its upward climb in August 2025, with the International Air Transport Association (IATA) reporting a 4.6% year-on-year increase in passenger traffic, pushing the month’s load factor to a record-high 86%.

The International Air Transport Association (IATA) released data for August 2025 global passenger demand with the following highlights:

•    Total capacity, measured in available seat kilometers (ASK), was up 4.5% year-on-year. The August load factor was 86.0% (+0.1 ppt compared to August 2024), a record high for the month.

•    International demand rose 6.6% compared to August 2024. Capacity was up 6.5% year-on-year, and the load factor was 85.8% (+0.1 ppt compared to August 2024).

•    Domestic demand increased 1.5% compared to August 2024. Capacity was up 1.3% year-on-year. The load factor was 86.3% (+0.1 ppt compared to August 2024).

“August year-on-year demand growth of 4.6% confirms that the 2025 peak northern summer travel season reached a new record high. Moreover, planes were operating with more seats filled than ever with a record load factor of 86%. Despite economic uncertainties and geopolitical tensions, the global growth trend shows no signs of abating, as October schedules are showing airlines planning 3.4% more capacity. Airlines are doing their best to meet travel demand by maximizing efficiency, making it even more critical for the aerospace manufacturing sector to sort out its supply chain challenges,” said Willie Walsh, IATA’s director general.

Air passenger market in detail – August 2025

Passenger Demand Grows 4.6% in August
Source: IATA

Regional Breakdown – International Passenger Markets

International RPK growth reached 6.6% in August year-on-year, and load factor reached a historic high. International traffic was by far the dominant driver of growth, accounting for 87% of the net increase in global RPK in August.

Asia-Pacific airlines achieved a 9.8% year-on-year increase in demand. Capacity increased 9.5% year-on-year, and the load factor was 85.1% (+0.2 ppt compared to August 2024). Growth was driven by strong demand from China and Japan (+11.8% and +12% respectively).

European carriers had a 5.3% year-on-year increase in demand. Capacity increased 5.3% year-on-year, and the load factor was flat (0.0 ppt compared to August 2024).

North American carriers saw a 1.8% year-on-year increase in demand. Capacity increased 2.6% year-on-year, and the load factor was 87.5% (-0.6 ppt compared to August 2024). This was the fourth consecutive month of YoY declines in international PLF for North America.

Middle Eastern carriers saw an 8.2% year-on-year increase in demand. Capacity rose by 6.9% year-on-year, and the load factor was 83.9% (+1.0 ppt compared to August 2024).

Latin American airlines saw a 9.0% year-on-year increase in demand. Capacity climbed 9.3% year-on-year. The load factor was 84.7% (-0.2 ppt compared to August 2024).

African airlines saw a 7.1% year-on-year increase in demand. Capacity was up 5.3% year-on-year. The load factor was 79.7% (+1.3 ppt compared to August 2024).

Domestic Passenger Markets

Domestic RPK rose 1.5% over August 2024 and contributed only 13% of the global increase in August RPK, down from 25% a year ago.

US domestic load factor fell YoY for the eighth consecutive month. The sharp expansion in Brazil was helped by government efforts to promote tourism.

Passenger Demand Grows 4.6% in August
Source: IATA
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No One is Above the Law: A Call for Accountability in the KWAM 1 Airport Incident https://techeconomy.ng/a-call-for-accountability-in-the-kwam-1-airport-incident/ https://techeconomy.ng/a-call-for-accountability-in-the-kwam-1-airport-incident/#respond Fri, 08 Aug 2025 21:02:19 +0000 https://techeconomy.ng/?p=164686 As the first Nigerian Professor of Cybersecurity and Information Technology Management and the first professor of African descent to receive the Royal Chartered Manager designation, I feel it is essential to address the recent incident involving King Wasiu Ayinde Marshal (KWAM 1) at the Nnamdi Azikiwe International Airport.

This situation has captured national interest and highlights important issues regarding aviation safety, the rule of law, and the accountability of public figures.

Summary of the Incident

KWAM 1 was directly involved in a confrontational incident with ValueJet staff regarding a flask that was suspected to contain alcohol, which he claimed contained medically prescribed water.

Ignoring multiple warnings, he defiantly poured the liquid onto an airline officer, preventing the aircraft from taxiing.

The Aviation Minister, Festus Keyamo, condemned the incident, stating it was ‘akin to a hostage situation.’

In response, the Nigerian Civil Aviation Authority (NCAA) took decisive action by suspending the pilot and co-pilot, while also placing KWAM 1 on a temporary no-fly list pending a thorough investigation.

Why the Incident Must Be Thoroughly Investigated

  1. Aviation Safety and National Security
    Preventing an aircraft from taxiing represents a significant violation of international aviation safety regulations. Such interference jeopardises the safety of passengers and crew aboard the aircraft and poses a severe risk to ground personnel and other aircraft nearby. The potential consequences of such actions are dire and could result in catastrophic incidents, including loss of life. Additionally, these disruptions can lead to widespread repercussions, such as delays in airport operations, cascading flight cancellations, and profound impacts on air traffic management systems. Ensuring strict adherence to safety protocols is essential to maintaining a secure and efficient aviation environment.
  2. Rule of Law and Equal Accountability
    Justice must be administered impartially and without bias to all involved parties. In this case, while the pilots faced suspension from their duties, it is critical to also consider the actions of KWAM 1. If the allegations against KWAM 1 are substantiated, they could be classified as grave offences, including obstruction of justice, physical assault, and endangerment of public safety. Each action carries significant legal implications and must be addressed with the same rigour and seriousness as the pilots’ situation. For the judicial system’s integrity, all individuals must be held accountable for their actions, regardless of their status or position.
  3. Precedent and Public Conduct
    As a prominent public figure, KWAM 1’s behaviour is a significant societal expectation and accountability benchmark. If he is not held responsible for his actions, it may validate similar misconduct by others and create a troubling environment where such behaviour becomes normalised. This lack of accountability could have far-reaching implications, potentially eroding public trust in aviation authorities and diminishing the credibility of institutions designed to ensure safety and integrity within the industry. Overall, the repercussions of overlooking KWAM 1’s actions extend beyond his personal conduct and could foster a culture of impunity that threatens the very foundations of public confidence in aviation.
  4. Institutional Integrity
    The participation of the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA), along with the Minister of Aviation’s oversight, highlights this situation’s significant institutional importance. Their involvement indicates a serious commitment to addressing any underlying issues that may have arisen. Conducting a thorough and transparent investigation will ensure accountability and enhance the credibility and trustworthiness of these agencies in the eyes of the public and stakeholders. By demonstrating their dedication to a fair process, they can reaffirm their roles as responsible regulators in the aviation sector.

Global Precedents and Lessons

Across the globe, incidents involving public figures or passengers disrupting aviation operations have been met with decisive action in the national interest.

In the United States, the Federal Aviation Administration (FAA) enforces a zero-tolerance policy, imposing fines up to $37,000 per violation and referring severe cases to the FBI for prosecution. This approach led to a significant reduction in unruly passenger incidents.

The United Kingdom launched the ‘One Too Many’ campaign, combining public awareness with on-the-spot fines and criminal prosecution for serious offences. Notably, a British celebrity faced fines and a flight ban for refusing crew instructions, reinforcing that fame does not exempt one from accountability.

In the Global North, countries such as Singapore and Australia have implemented civil penalty systems designed to enforce aviation safety standards effectively.

These systems allow for immediate fines and administrative notices, which can escalate to criminal charges if necessary.

This approach ensures swift consequences for violations, reinforcing the commitment to maintaining high safety standards in aviation.

International organizations, including the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO), strongly advocate for the ratification of the Montreal Protocol of 2014. This protocol aims to enhance the jurisdictional authority of member states, ensuring that international aviation regulations are not only harmonized but also consistently enforced across different regions.

The promotion of this protocol by various organizations aims to create a cohesive framework for aviation governance. This initiative is essential for enhancing safety standards, protecting the environment, and improving operational efficiency within the global aviation system.

These global precedents underscore the importance of impartial investigations and proportionate consequences.

Nigeria must align with these best practices to affirm that no individual, regardless of status, is above the law. The KWAM 1 incident presents an opportunity to reinforce national commitment to aviation safety and public accountability.

Why Prosecution May Be Necessary

Should investigations confirm that KWAM 1 engaged in physical assault against airport personnel, obstructed the movement of aircraft, and violated critical aviation safety regulations, this could lead to a significant and precedent-setting prosecution under Nigeria’s aviation and criminal laws.

Such actions not only endanger the safety of airport operations but also contravene established legal frameworks designed to protect personnel and passengers.

The repercussions of these findings could fundamentally alter the legal landscape related to aviation security and accountability in Nigeria.

This issue extends far beyond mere accountability; it is a formidable declaration emphasising that the integrity of airport operations must be vigorously safeguarded. We must convey an unequivocal message: no individual is exempt from the law, regardless of their position or influence. We must champion justice and prioritise the safety of all who travel in the skies.

Adhering to these core principles is essential for safeguarding passengers and crew members while fostering public trust in our aviation systems. We must dedicate ourselves to maintaining a commitment encompassing all facets of airport operations, ensuring they are conducted with a strong emphasis on fairness, security, and transparency.

Doing so creates a reliable atmosphere where safety is paramount and consistently prioritised. This approach not only enhances the travel experience but also reinforces our duty to protect everyone involved in air travel and instils confidence in the overall integrity of our aviation infrastructure.

Conclusion

We must confront the seriousness of the recent incident head-on, as it carries significant implications for our national interest. An exhaustive and impartial investigation is not just necessary; it is imperative. If warranted, swift and appropriate legal action must be taken.

This commitment will demonstrate Nigeria’s unyielding dedication to safety, justice, and responsible conduct in public life. Additionally, public figures must be held to the highest standards, as their actions profoundly shape societal norms and expectations.

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IATA Values Kenya Aviation Sector at $3.3 billion https://techeconomy.ng/iata-values-kenya-aviation-sector-at-3-3-billion/ https://techeconomy.ng/iata-values-kenya-aviation-sector-at-3-3-billion/#comments Thu, 15 May 2025 10:26:50 +0000 https://techeconomy.ng/?p=158735 The International Air Transport Association (IATA) released the Value of Air Transport study for Kenya, quantifying the substantial benefits that aviation (including aviation-related tourism) generates in terms of jobs and economic activity.  

Highlights from 2023 data show that aviation supports and facilitates:
•    USD 3.3 billion of economic activity (total impact including wider supply chain, employee spending, and tourism activities), equal to 3.1% of Gross Domestic Product (GDP)

•    460,000 jobs (total impact including wider supply chain, employee spending, and tourism activities), 5,700 of which are directly employed by airlines

•    380,000 tonnes of air cargo, making it is the 35th largest air cargo market in the world

“Kenya’s aviation sector is a vital economic driver, contributing USD 3.3 billion to GDP and supporting 460,000 jobs. With Africa’s aviation market projected to grow at 3.7% over the next 20 years, the potential for these substantial economic and social benefits to grow are enormous. This will, however, require efficient, cost-competitive infrastructure, a skilled workforce, and achieving net zero carbon emissions by 2050,” said Willie Walsh, IATA’s director general.

Key priorities for Kenya

IATA outlined three key priorities for Kenya:

•    Infrastructure: As Kenya expands its airport infrastructure, IATA encourages continued collaboration with airline stakeholders and alignment with global standards and best practices. Efficient, cost-effective infrastructure is vital to strengthening Kenya’s position as a leading East African hub for trade and tourism.

•    Passenger and Cargo Facilitation:  The implementation of Kenya’s electronic Travel Authorization (eTA) system has the potential to significantly enhance the country’s appeal as a destination for both leisure and business travel, as the system continues to be refined. Kenya’s competitiveness as a hub for both passenger and cargo activity can be strengthened with a comprehensive strategy for digitalization of facilitation processes.

•    Training:  A skilled aviation workforce is critical to growing aviation’s benefits in Kenya. Key areas for capacity-building include technical operations, ground operations, maintenance, digital transformation and sustainability. IATA’s regional training centre, with Kenya Airways as its training partner, will contribute to building Kenya’s aviation workforce of the future.

Download the full study here.

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African Airlines Record 3.3% YoY Rise in Passenger Demand in Mar ’25 https://techeconomy.ng/african-airlines-record-3-3-yoy-rise-in-passenger-demand-in-mar-25/ https://techeconomy.ng/african-airlines-record-3-3-yoy-rise-in-passenger-demand-in-mar-25/#respond Sun, 04 May 2025 23:13:09 +0000 https://techeconomy.ng/?p=158001 The International Air Transport Association (IATA) released data for March 2025 global passenger demand for air travel with the following highlights:

  • Total demand, measured in revenue passenger kilometers (RPK), was up 3.3% compared to March 2024. Total capacity, measured in available seat kilometers (ASK), was up 5.3% year-on-year. The March load factor was 80.7% (-1.6 ppt compared to March 2024).
  • International demand rose 4.9% compared to March 2024. Capacity was up 7.0% year-on-year, and the load factor was 79.9% (-1.7 ppt compared to March 2024).
  • Domestic demand increased 0.9% compared to March 2024. Capacity was up 2.5% year-on-year. The load factor was 82.0% (-1.3 ppt compared to March 2024).

Africa accounted for 2.2% of the total world passenger air travel market in March 2025.04.30

Key highlights

During March 2025, African airlines saw

  • a 3.3% year-on-year increase in demand – on par with the global picture.
  • A 3.5% y-o-y expansion of capacity (whereas the global market saw a greater, 5.3% capacity increase)
  • Load factors falling by -0.2 percentage points y-o-y to a 70.1%  passenger load factor, i.e. less than three quarters of available seats were taken up by the market.  (this was lower than the 80.7% global average load factor).

“Passenger demand grew by 3.3% year-on-year in March, a slight strengthening from the 2.7% growth reported for February. A capacity expansion of 5.3%, however, outpaced the demand expansion leading to a load factor decline from record highs to 80.7% systemwide.

There remains a lot of speculation around the potential impacts of tariffs and other economic headwinds on travel.

While the small decline in demand in North America needs to be watched carefully, March numbers continued to show a global pattern of growth for air travel.

That means the challenges associated with accommodating more people who need to travel—specifically alleviating supply chain problems and ensuring sufficient airport and air traffic management capacity—remain urgent,” said Willie Walsh, IATA’s director general.

African Airlines - March 2025
Source: IATA

Regional Breakdown – International Passenger Markets 

International RPK growth slowed to 4.9% in March year-on-year from the 5.9% reported for February and from the 12.5% reported in January.

This slowdown since January reflects in large part the final normalization of year-on-year demand comparisons post-COVID. Asia-Pacific was the strongest performer among regions with 9.9% growth.

Load factors fell in every region, for a -1.7 ppt overall decline.

Asia-Pacific airlines reported a 9.9% year-on-year increase in demand. Capacity increased 11.6% year-on-year, and the load factor was 84.1% (-1.3 ppt compared to March 2024).

European carriers had a 4.9% year-on-year increase in demand. Capacity increased 6.9% year-on-year, and the load factor was 78.2% (-1.5 ppt compared to March 2024).

 Middle Eastern carriers saw a -1.0% year-on-year decline in demand. Capacity increased 2.8% year-on-year, and the load factor was 74.6% (-2.9 ppt compared to March 2024).

The decline in demand is likely related to the timing of Ramadan which impacts travel patterns.

North American carriers saw a -0.1% year-on-year fall in demand. Capacity increased 2.0% year-on-year, and the load factor was 83.0% (-1.8 ppt compared to March 2024). While demand had a second consecutive month of year-on-year contraction, it is important to note that this is an improvement on the -1.5% decline airlines saw a 7.7% year-on-year increase in demand. Capacity climbed 12.1% year-on-year. The load factor was 80.9% (-3.3 ppt compared to March 2024).

African airlines airlines saw a 3.3% year-on-year increase in demand. Capacity was up 3.5% year-on-year. The load factor was 70.1% (-0.2 ppt compared to March 2024)

Domestic Passenger Markets 

Domestic air travel posted a marginal 0.9% gain, weighed down by declines in the US and Australian markets. Brazil and India reported the strongest growth at 8.9% and 11.0% respectively. Meanwhile, Australia (-1.2%) and the US (-1.7%) reported declines.

The load factor fell -1.3 ppt as domestic capacity expanded 2.5%.

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IATA: Aviation Security Leaders Call for Digital Identity https://techeconomy.ng/aviation-security-leaders-call-for-digital-identity/ https://techeconomy.ng/aviation-security-leaders-call-for-digital-identity/#comments Wed, 19 Mar 2025 13:27:57 +0000 https://techeconomy.ng/?p=155176 The International Air Transport Association (IATA) is calling for the rapid adoption of digital identity technologies to enhance aviation security and operational efficiency.

Leading government and industry stakeholders in aviation security participating in the Sydney Leaders Week Conference supported this position, emphasizing the need for collaboration in implementing Verifiable Credentials (VC) and Decentralized Identifiers (DIDs).

Sydney Leaders Week, hosted by Qantas, is being attended by industry experts and government representatives from Australia, Canada, China, New Zealand, the UK, and the US.

It is widely accepted that digital identity can bring the following benefits to aviation security:

  • Stronger Document Integrity: Reducing fraud and unauthorized access.​
  • Global Trust: Enabling secure, cross-border, interoperable identity verification.
  • Operational Efficiency: Streamlining document verification for a smoother passenger experience, strengthening regulatory oversight, and optimizing resource allocation.

“Global cooperation keeps flying secure. Adopting Verifiable Credentials and Decentralized Identifiers standards is a natural next step in reinforcing security, trust, and efficiency. Every aviation stakeholder wants flying to be even more secure—which crosses geopolitical divides. The technology is ready and proven. We now need to take the momentum of this meeting and work towards obtaining a recommendation at the upcoming ICAO assembly later this year,” said Nick Careen, IATA’s senior vice president, Operations, Safety and Security.

Strengthening Security Through Digital Transformation

Aviation security leaders at the conference also identified key actions for governments to drive the industry’s digital transformation:

  • Fast-Track Technology Integration: Incorporate VC and DID technologies into national and international security frameworks, aligning with ICAO Annex 17 and Aircraft Operator Security Programs (AOSP).
  • Prioritize Aviation Digital ID Use Cases: Integrate aviation digital identity solutions into national digital strategies to enhance global cooperation.
  • Invest in Capacity Building: Allocate resources to equip industry stakeholders with the necessary knowledge and infrastructure for seamless implementation.​
  • Increase Stakeholder Engagement: Promote awareness and industry-wide adoption of digital identity solutions through targeted education and outreach.

Industry is Working to Support Governments in Adopting Digital Identity

As part of this effort, IATA’s One ID initiative promotes globally interoperable digital identity standards, enabling passengers to verify their travel documents before departure and move through the airport using biometric recognition instead of physical documents.

One ID works in harmony with ICAO’s Digital Travel Credential ensuring security and efficiency while maintaining privacy and compliance with global regulations.

IATA is also advancing its Aviation Security Trust Framework, which sees regulatory alignment, cross-sector collaboration and infrastructure as critical components to realize the benefits of digital identity in global aviation.

For more information on the Aviation Security Trust Framework and digital identity initiatives, download the white paper from IATA’s website.

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