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Business News of Thursday, 18 June 2020


Coronavirus: Domestic passenger flight figures rises to 2,800 per week – GACL

Data from the Ghana Airport Company Limited (GACL) has revealed domestic passenger flights from Accra to Kumasi and Tamale rose from nearly 1,850 travelers per week to almost 2,800 passengers per week.

According to the information available to GhanaWeb, the spike was as a result of the resumption of domestic flight operations on May 1, 2020, to the two major destinations from Accra to Kumasi to Tamale in the wake of relaxing the coronavirus induced ban on air travel.

Aviation Minister, Kofi Adda, speaking in an earlier interview with GhanaWeb indicated the average domestic flight figures for passengers, some three weeks ago, averaged 300 per day.

Despite the increase, some domestic flight operators have lamented the current passenger traffic was rather low as compared to the period before Ghana recorded its first COVID-19 case on March 12, 2020, where they relished carrying up to 2,200 passengers per day.

Presently, Ghana’s domestic flight space is dominated by two main operators, Africa World Airlines (AWA) and Passion Air, which carries 70 and 30 percent of passengers respectively.

The Aviation Ministry, prior to the resumption of domestic flight operations announced the introduction of physical distancing on board flights as one of the stringent measures the curb coronavirus infections.

But some domestic flight operators said the move was rather impacting on the revenue profitability where they are witnessing a reduction in aircraft capacity from a maximum of 78 to 38 passengers per flight.

Meanwhile, the Ghana Civil Aviation Authority (GCAA) has revealed that it has lost nearly 95 percent of its revenue income due to the novel Coronavirus inflicted ban on foreign travel.

In the face of government’s resolve to repatriate some stranded Ghanaians citizens abroad due to the closure of land and air borders, the GCAA says the move will not be enough to meet its budget expenditure.

Global losses on aviation industry

The International Air Transport Association (IATA) releasing its latest financial outlook for the global air transport industry has said airlines are expected to lose US$84.3 billion in 2020 for a net profit margin of -20.1%.

According to the aviation body, revenues are expected to fall some 50% to US$419 billion from US$838 billion in 2019. In 2021, losses are expected to be cut to US$15.8 billion as revenues rise to US$598 billion.

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