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Africa’s Freight Demand Rises 15.9% on Asian Investment Flows

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By Dipo Olowookere

A new report released last week by the International Air Transport Association (IATA) has shown that African carriers saw increase in freight demand by 15.9 percent in February 2018 compared to the same month last year – the largest increase of any region.

The report disclosed that capacity increased by 3.9 percent and was helped by very strong growth on the trade lanes to and from Asia driven by ongoing foreign investment flows into Africa.

IATA said while the surge in demand on the route looks to have stabilized, volumes still increased by nearly 24 percent in year-on-year terms in January.

Globally, the report revealed that air freight markets for February 2018 recorded 6.8 percent increase in demand measured in freight tonne kilometres (FTKs) compared to the same period last year.

Adjusting for the potential Lunar New Year distortions by combining growth in January 2018 and February 2018, demand increased by 7.7 percent. This was the strongest start to a year since 2015.

Freight capacity, measured in available freight tonne kilometres (AFTKs), grew by 5.6 percent year-on-year in February 2018.

Furthermore, demand growth outstripped capacity growth for the 19th month in a row, which is positive for airline yields and the industry’s financial performance.

The continued growth in air cargo demand is consistent with ongoing robust global trade flows. There are, however, signs that the best of the upturn for air freight has passed. Demand drivers for air cargo are moving away from the highly supportive levels seen last year.

In recent months the Purchasing Managers’ Index (PMI) for manufacturing and export orders has softened in a number of key exporting nations including Germany, China and the US. And the seasonally- adjusted demand for air cargo which rose at a double-digit annualized rate for much of 2017 is now trending at 3 percent.

“Demand for air cargo continues to be strong, with 6.8 percent growth in February. The positive outlook for the rest of 2018, however, faces some potentially strong headwinds, including escalation of protectionist measures into a full-blown trade war.

“Prosperity grows when borders are open to people and to trade, and we are all held back when they are not,” said Alexandre de Juniac, IATA’s Director General and CEO.

The report also said North American airlines’ freight volumes expanded 7.3 percent in February 2018 compared to the same period a year earlier, and capacity increased by 4.1 percent.

Seasonally-adjusted volumes are broadly trending sideways. The weakening of the US dollar over the past year has helped boost demand for air exports.

Data from the US Census Bureau shows a 10.2 percent year-on-year increase in air export volumes from the US in January 2018, compared to a slower rise in imports of 6.7 percent.

In the same vein, European airlines posted a 5.7 percent increase in freight volumes in February 2018. This was almost half the rate of the previous month and the slowest of all regions.

Capacity increased 3.8 percent. Seasonally-adjusted volumes have been volatile in 2018 with the jump in demand in January largely reversed in month-on-month terms in February.

The strength of the Euro and the risks from protectionist measures may impact the European freight market which has benefitted from strong export orders, particularly in Germany, in recent years.

Also, Asia-Pacific airlines saw demand in freight volumes grow 6.5 percent in February 2018 and capacity increase by 7.2 percent, compared to the same period in 2017.

The upward-trend in seasonally-adjusted volumes has returned, with volumes currently trending upwards at an annualized pace of between 6.0 percent and 7.0 percent.

As the largest freight-flying region, carrying close to 37 percent of global air freight, the risks from protectionist measures impacting the region are disproportionately high.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Travel/Tourism

US to Nigerian Travellers: Visa Overstays Not Good for Fellow Citizens

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Nigerian Travellers US Visa Overstays

By Adedapo Adesanya

The United States (US) has warned that visa overstays by Nigerian travellers could deny future opportunities for other aspiring applicants.

The United States embassy had earlier in February stated that compliance would help protect visa access for students and business travellers.

In a reminder statement posted on its official X handle on Monday, the US Mission in Nigeria advised that strengthening compliance helps protect visa access for students, business travellers, and families who travel responsibly.

“#Reminder: Visa overstays by Nigerian travellers can affect opportunities for their fellow citizens. Strengthening compliance helps protect access for students, business travellers, and families who travel responsibly. If you are aware of visa fraud, please report it to [email protected] or [email protected],” the statement read.

Last August, the Mission also announced that all non-immigrant visa applicants must now provide details of their social media accounts from the past five years.

In a statement, the embassy said applicants are required to disclose usernames or handles from every platform used within the period when completing the DS-160 visa application form.

“Visa applicants are required to list all social media usernames or handles of every platform they have used from the last 5 years on the DS-160 visa application form. Applicants certify that the information in their visa application is true and correct before they sign and submit,” the statement read.

The mission warned that omitting such information could result in visa denial and render applicants ineligible for future visas.

The DS-160 is the standard online form required for most US non-immigrant visas, including temporary business (B-1), tourism (B-2), student visas (F and M), and work-related categories such as the H-1B.

It insisted the new rules were designed to enhance security, they come amid repeated US criticism of governments accused of clamping down on free speech online.

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Tinubu Okays 30% Debt Relief to Airlines, Orders Fuel Price Talks

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Tinubu 2026 budget

By Adedapo Adesanya

President Bola Tinubu has approved a 30 per cent relief ​on debts owed by local ‌airlines to aviation agencies and ordered talks involving fuel marketers, airlines, and ​regulators to reach a ​fair jet fuel price.

He had earlier agreed in principle ​to write off part of domestic ‌airlines’ debts to aviation agencies following successful talks with the Airline Operators of Nigeria (AON).

The group demanded a total waiver of debts owed to aviation agencies to cushion the effect of a 300 per cent increase in aviation fuel prices during a crucial high-level meeting with the Minister of Aviation and Aerospace Development, Mr Festus Keyamo and other critical stakeholders in Abuja.

Recall that the airlines had called off their impending strike due to commence on Monday over the rising cost of operations, particularly for fuel, triggered by the current Middle East crisis.

In an update on Thursday, Mr Keyamo said President Tinubu had approved the 30 per cent write‑off ​and tasked stakeholders, including fuel marketers, government representatives, airlines, and ​regulators, to reach a ​fair jet fuel price by Sunday.

Also, the federal government agreed to set up a committee to ​review taxes, levies and fees charged ​on domestic air tickets, to recommend cuts to ease ‌pressure ⁠on airlines and passengers.

Engagements among representatives from government, ​airlines, fuel marketers, and regulators will continue to agree on what the minister described as “fair and reasonable” pricing for jet fuel, ​with any ​outcome ⁠to be made public.

The cost of fuel has generally risen in the last two months due to the escalating war with Iran by the US and Israel, which has triggered one of the most severe energy shocks in decades. Oil prices are currently above $100 per barrel as markets react to escalating tensions and the risk of prolonged disruption.

At the centre of the crisis is the Strait of Hormuz, a chokepoint through which roughly one-fifth of global oil supply flows. With shipping constrained, the effects are cascading across the global economy, raising fuel costs, fueling inflation, and increasing the risk of economic slowdown across many economies. This is forcing airlines to raise fares, curb ⁠growth ​plans and rethink forecasts.

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Nigeria Achieves 91.4% Safety Rating in ICAO Assessment

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aviation safety rating

By Adedapo Adesanya

Nigeria has received a 91.4 per cent aviation safety rating following the latest assessment by the International Civil Aviation Organisation (ICAO) Coordinated Validation Mission (ICVM), marking one of its strongest performances in recent years.

This was disclosed by the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, who announced the development on Wednesday at his office in Abuja, describing it as one of the highest safety ratings Nigeria has achieved under ICAO evaluations since 1960.

He explained that the outcome follows a comprehensive audit in which all aviation agencies and airlines operating in the country were assessed and certified safe based on the findings of the ICAO visiting team.

Speaking further, Mr Keyamo attributed the success to President Tinubu’s deliberate policy and support for the aviation industry.

The ICVM team concluded its on-site safety oversight audit in Nigeria on Wednesday after beginning its review last week.

The exercise was carried out as a follow-up to the ICAO Universal Safety Oversight Audit Programme (USOAP), conducted between August and September 2023.

Mr Keyamo had on Wednesday disclosed key federal government interventions aimed at reducing the financial pressure on airlines following rising concerns over the cost of Jet A1 fuel and the threat of service disruptions in the aviation sector.

Mr Keyamo stated that President Bola Tinubu had approved a generous discount on certain outstanding fees owed to the government by airline operators after they threatened to shut down over a 300 per cent surge in jet fuel price

He explained that the decision is part of efforts to provide immediate relief to the sector and prevent a breakdown in air transport services.

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