Projections by the International Air Transport Association (IATA) that passenger numbers in many African countries will double in the next two decades points to better prospects for financially-troubled Kenya Airways #ticker:KQ.
The association, which is made up of 275 airlines including the national carrier, says the African aviation market will post a compounded growth rate of 5.9 per cent every year.
Some countries, including Rwanda, Uganda, Ethiopia, Ivory Coast, Tanzania, Malawi, Chad, Gambia and Mozambique will post an annual growth of 7.2 per cent, adding an extra 274 million passengers by 2036.
Kenya Airways is a major carrier on the African continent where it plies multiple routes, connecting the continent to European and Asian destinations.
“All indicators lead to a growing demand for global connectivity. The world needs to prepare for a doubling of passengers in the next 20 years,” IATA’s director general and chief executive Alexandre de Juniac said in a statement.
Africa accounts for about half of KQ’s turnover with most of its flights starting and terminating within the continent. The airline also flies to most of the countries that IATA has listed as exhibiting positive growth prospects.
“It is fantastic news for innovation and prosperity, which is driven by air links. It is also a huge challenge for governments and industry to ensure we can successfully meet this essential demand,” Mr Juniac said.