Travel/Tourism
Investment Key to Future Growth for Global, African Aviation
The aviation sector’s recovery from COVID-19 has been remarkable, with revenue passenger kilometres (RPKs) and available seat kilometres (ASKs) reaching close to pre-pandemic levels, according to the International Air Transport Association (IATA). In the fourth quarter of 2023, traffic was at 98.2% of pre-pandemic numbers. Additionally, the sector is expected to experience record fleet and maintenance, repair, and overhaul (MRO) growth this year.
Oliver Wyman’s latest Global Fleet and MRO Market Forecast predicts that the number of commercial aircraft worldwide will expand at a compound annual growth rate (CAGR) of 2.5%, reaching more than 36,400 aircraft by the start of 2034. This represents a 28% increase over the current fleet of around 28,400 aircraft. The forecast also indicates that global MRO spending is expected to reach US$104 billion, surpassing the pre-pandemic peak in 2020. That spending will still, however, fall short of demand. By 2034, MRO demand worldwide is projected to reach US$124 billion.
In Africa, the fleet is expected to grow about 25% by 2034, reaching over 1,400 aircraft. The largest growth is projected to occur between 2029 and 2034, with a CAGR of 2.7%. For example, South African Airways has announced plans to expand its fleet to approximately 40 aircraft over the next decade, from just 13 today.
“The growth in Africa reflects an expected expansion of demand. Figures from IATA show that African passenger numbers will nearly double by 2035. This will require airlines to continue to invest in expanding their fleet, as well as looking at new routes to add to their network,” says Paul Calvey, Oliver Wyman Partner and Head of its operations in South Africa.
But while the global and African numbers reflect growth, they fall short of pre-pandemic predictions. Before the pandemic, it was anticipated that the global aircraft fleet would reach 36,000 by 2030. Now, it is unlikely to reach that size before 2036, resulting in a six-year setback in industry growth due to COVID-19. From an African perspective, this slow recovery is particularly understandable. Several African airlines folded as a result of the COVID-19 pandemic, and in 2020 alone, the continent’s aviation sector lost US$7.7 billion in revenue.
This highlights the magnitude of the setback caused by COVID-19. Additionally, the current global fleet size isn’t significantly higher than the 27,492 aircraft that were in service in 2019. To regain its previous trajectory, the aviation sector will require significant investment, much of which will depend on global economic growth.
Investment challenges in the aviation industry
The forecast identifies several challenges that hinder investment in the aviation sector. These include the impact of COVID-19, inflation, and shortages of skilled labour, raw materials, and aviation maintenance technicians (AMTs) and engineers. The industry must modernise and optimise production along the supply chain, while the MRO support network faces similar challenges in keeping aircraft operational.
“While the industry must invest in overcoming those challenges, it’s important to remember that it’s not easy for it to do so at present, according to a number of trends,” says André Martins, Partner and Head of Transportation and Services for India, Middle East, and Africa regions (IMEA) at Oliver Wyman.
He continues that “rapidly rising interest rates have made borrowing far more expensive than it was pre-pandemic. Mounting inflation, meanwhile, has created significant wage pressure across the industry. In the US, for instance, captains’ salaries at mainline airlines increased by 46% between 2020 and 2023, while those flying for US regional airlines saw their wages rise by 86%. Furthermore, this inflationary environment has led to higher costs for aircraft components and other supplies compared to before the pandemic.”
Other cost factors, such as escalating conflicts in the Middle East and attacks on ships in the Red Sea, have led to increased aviation fuel prices. Although prices are lower than in 2022, industry players remain cautious about potential further increases.
Gearing up for global growth
Despite the current challenges, there are indications that conditions may improve, facilitating investment in the aviation sector. While global economic growth is currently at its lowest level since the 1990s, the outlook is becoming more positive. Inflation is expected to ease, and the US economy is projected to experience a soft landing. Although major economies like China still face economic headwinds, the global economy is likely to avoid recession.
This positive outlook will eventually enable central banks to reduce interest rates, making borrowing cheaper and enabling crucial investments in the aviation sector.
“Investment is necessary not only to address labour and supply chain optimisation challenges but also to meet the increasing pressure for environmental sustainability. This includes investing in sustainable aviation fuel (SAF), which can significantly reduce emissions,” Martins says.
Maximising available opportunities
By maximising the available opportunities in Africa, such as collaboration on infrastructure development and investment in African airlines, the industry can not only recover but thrive in the coming years. Investors and policymakers also have a role to play in supporting sustainable growth through policies that incentivize investment in new technologies and skilled labour.
By Modupe Gbadeyanka
Emirates passengers travelling to or through Dubai will enjoy some exclusive offers, including complimentary stays at the iconic JW Marriott Marquis and hundreds of discounts through the popular My Emirates Pass, the airline operator has said.
In a statement, the company stated that from June 22 to July 12, 2026, travellers who purchase an Emirates return ticket in First Class or Business Class are invited to enjoy a two-night stay, while customers booked in Premium Economy Class or Economy Class can enjoy a complimentary one-night stay.
It was disclosed that this special offer is valid for all return tickets to or stopping over in Dubai for more than 24 hours, for customers travelling between June 25 and September 30, 2026.
In addition, passengers can enjoy over 600 offers available in the popular My Emirates Pass, which provides access to spas, restaurants, big-name retailers and much more by simply showing either a physical or digital boarding pass along with a valid ID at participating venues to enjoy the benefits.
These exclusive offers are being offered by Emirates through its Dubai Summer Surprises, which enters its 28th year in 2026.
Further, from July 2 to August 30, residents and visitors can expect an extraordinary live Beat the Heat DXB concert series, cultural events and an array of wellness and fitness activities, as well as big savings and exclusive, limited-time experiences in the city’s malls and lifestyle destinations.
“Whether visitors are seeking relaxation, adventure, entertainment, or a combination of all three, Dubai is the ideal start to any summer vacation.
“We’re inviting passengers to enjoy even more of the city with a complimentary hotel stay to take advantage of the exceptional range of shopping, entertainment, dining and family-friendly experiences that define the Dubai summer experience, when stopping over as part of your journey or visiting Dubai as your final destination,” the Deputy President and Chief Commercial Officer of Emirates, Mr Adnan Kazim, said.
By Modupe Gbadeyanka
The popular Jabi Lake waterfront in Abuja is set to become a major leisure and tourism hub in the country, thanks to Akida Hills, which is making efforts to enable visitors to enjoy the transformation from December 2026.
The Nigerian mixed-use real estate and destination development company has been allocated a 3.36-hectare development site within the approximately 14-hectare waterfront district, where it will deliver a phased mix of recreational, entertainment, and public leisure experiences.
According to the deal, the first phase of the development will introduce the destination’s first operational attractions, including dining and leisure experiences, water-based activities, structured weekly programming, a seasonal lights festival, and the dancing musical fountain as its signature attraction.
Additional experiences and amenities will be introduced in subsequent phases as the destination evolves.
Designed as a central landmark within the waterfront experience, the dancing musical fountain will combine choreographed water displays, synchronised lighting, and music to create a distinctive evening attraction and focal point for visitor engagement.
Upon completion, the development is expected to serve as a major hub for tourism, recreation, entertainment, and community engagement, further strengthening Abuja’s position as a leading leisure and lifestyle destination.
Construction and implementation activities will progress in phases, with additional announcements on attractions, programming, and commercial partnerships expected ahead of the December 2026 launch.
“Jabi Lake represents one of the most significant opportunities to create a world-class waterfront destination in Africa.
“Through this development, we aim to deliver experiences that attract residents, visitors, and tourists year-round while contributing to economic growth, job creation, and Nigeria’s tourism appeal.
“Our vision is to establish Jabi as a defining waterfront destination for the continent – one that demonstrates the transformative power of destination-led development and reimagines how people experience a city,” the founder of Akida Hills, Mr Kayode Bamisile, said.
By Adedapo Adesanya
The Federal Airports Authority of Nigeria (FAAN) is considering extending the deadline for its airport taxi upgrade policy to October, following concerns raised by the Nigeria Union of Private Cab Operators.
The development was disclosed on Monday in Lagos by Mr Henry Agbebire, Director of Public Affairs and Consumer Protection at FAAN, saying that the possible extension followed complaints and concerns from airport cab operators, even as the authority maintained that the policy was designed to improve service standards across Nigerian airports.
“The policy aligns with international best practices and seeks to elevate service quality,” Mr Agbebire said.
He added that passengers deserved “clean, safe, comfortable and professionally maintained vehicles” within airport transport systems.
The FAAN spokesman dismissed claims that the authority had failed to engage operators on the policy, insisting that consultations had been ongoing.
He said FAAN maintained regular discussions with licensed transport providers operating within airport premises, stressing that engagement was conducted directly with corporate entities rather than unions or associations.
“Engagements on operational matters are conducted directly with affected corporate entities,” he said.
Mr Agbebire explained that discussions on the upgrade requirement began in July 2024, giving operators time to comply.
He noted that the original compliance deadline had already been extended twice—from January 2026 to June 2026—citing economic realities and the need to give operators adequate preparation time.
According to him, the policy was not intended to punish operators or restrict their participation in airport transport services.
“Operators have been afforded ample opportunity to prepare for compliance,” he stated.
However, he warned that further extensions beyond the proposed October deadline may not be granted.
Mr Agbebire acknowledged the role of airport cab operators in passenger movement, urging them to support the initiative aimed at improving service delivery.
He added that FAAN remains committed to passenger-focused reforms across Nigeria’s aviation sector.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn