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Airlines will close 2018 with Sh10bn loss, IATA predicts

Airline's sustained failure to fill their planes will continue eating into revenues. FILE PHOTO | NMG
Airline's sustained failure to fill their planes will continue eating into revenues. FILE PHOTO | NMG 

African airlines are likely to close next year with a $100 million (Sh10.3 billion) net loss as sluggish economies across the continent continue to impact the industry, the International Air Transport Association (IATA) has said.

The association, which is made up of 275 airlines including Kenya Airways #ticker:KQ, has also said that, while passenger numbers among African carriers are growing, their sustained failure to fill their planes will continue eating into revenues.

Following this economic slowdown, and coupled with poor infrastructure, high taxes and protectionist policies by some governments, IATA projects that African airlines will in 2018 remain at a similar net loss position as 2017.

IATA’s projection does not bode well for carriers such as Kenya Airways and South African Airlines which are struggling to bounce back from the brink of insolvency to profitability.

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