in Business & Finance

AFRAA and ECA publish report on financial impact of COVID-19 on African airlines

Posted 3 March 2021 · Add Comment

The Economic Commission for Africa (ECA) and the African Airlines Association (AFRAA) have published a report on the financial impact of COVID-19 pandemic on African airlines and insights for the recovery from the liquidity crisis.

AFRAA’s secretary general,  Abdérahmane Berthé stated: “AFRAA, in collaboration with industry stakeholders and air transport organizations, continues to advocate for direct government support for airlines.  Image: AFRAA

This follows a survey that was jointly conducted by the two organisations to quantify the indebtedness of African airlines from COVID-19 impacts which forms basis for campaigns for the much-needed financial support.


Entitled: “Policy research paper COVID-19 and African airlines overcoming a liquidity crisis,” the report focuses on the indebtedness of airlines to banks, financial institutions, aircraft leasing companies and aircraft manufacturers. It therefore sheds light on the financing options and cost structures of the airlines. The value addition of the paper lies in its overarching perspective, which consists in analysing, through a financing lens, the COVID-19-induced challenges faced by African airlines and also the efforts undertaken to address these challenges.


The report reveals huge differences in the size and structure of the debts of airlines. This suggests that a one-size-fits-all solution may not be appropriate to address their liquidity challenges. Financial support must therefore be tailored to the specific features of airlines.


AFRAA’s Secretary General,  Abdérahmane Berthé said: “AFRAA, in collaboration with industry stakeholders and air transport organiSations, continues to advocate for direct government support for airlines and for them to create a platform to coordinate their efforts towards the survival of the industry, in particular by linking airlines and financial institutions and facilitating access to available funds.” AFRAA has further made appeals to development finance institutions to created facilities to help mitigate the impact of the pandemic on vital sectors of the economies of countries on the continent.


AFRAA estimates that African airlines made a revenue loss of US$10.21 billion in 2020 due to the impacts of the pandemic. “Financial support to the industry is critical for survival. Some of the measures that we are appealing to governments to implement include: providing grants, loans and loan guarantees, issuing equity and also deferring or waiving payments of debts, rents, charges and taxes by airlines.” added Mr. Berthé. 


The report further articulates strategies and plans for the survival, recovery and sustainability of the industry. While the aviation system is multidimensional the report focuses on airlines, many of which are facing insolvency as their operations have ground to a halt as a result of travel restrictions to curb the spread of the pandemic.

Other Stories
Latest News

Airbus reports half-year 2021 results

Airbus has reported consolidated financial results for the half-year (H1) ended 30 June 2021.

African airlines’ international cargo demand in June increased 33.5%

The International Air Transport Association (IATA) has released data for global air cargo markets for June showing a 9.9% improvement on pre-COVID-19 performance (June 2019).

African airlines’ traffic fell 68.2% in June

The International Air Transport Association (IATA) announced passenger demand performance for June 2021 showing a very slight improvement in both international and domestic air travel markets. Demand remains significantly below

A book for airlines CEOs and accountable managers is published

A book which addresses all the leadership challenges in a civil aviation company has been written by Dr Mark j Pierotti`s, commercial department director at Abu Dhabi Aviation.

Boeing reports second-quarter revenue of $17.0 billion

The Boeing Company has reported second-quarter revenue of $17.0 billion, driven by higher commercial airplanes and services volume. GAAP earnings per share of $1.00 and core earnings per share (non-GAAP) of $0.40 primarily reflects

Generator for hybrid-electric aero power and propulsion system arrives at Rolls-Royce

The generator that will be at the heart of the most powerful hybrid-electric aero power and propulsion system in aerospace has arrived for installation at Rolls-Royce specialist testbed.

WDS SK2601090322
See us at
Aviation Africa 2021 BTOCDAS21_BTAviation MENA 2022WDS BT1202090322