African airlines have been changing over the years so as to adapt to the dynamic shifts in the industry. Here are some of the ways in which this has happened.
In the last twenty years Africa’s airlines industry’s earnings have fluctuated greatly. Around two decades ago, Africa had few airlines that would serve an extensive market. A host of new low cost carriers entered the industry as others opted out and declared bankruptcy. Due to the increasing rate for travel, the airlines had to find ways of increasing their revenue and customizing great rates for the African traveler.
Despite the projected growth in traffic, most of the continent carriers fly at 70% capacity against 80% international industry average. According to International Air Transport Association (IATA) in its Industry Economic Performance 2017 report, governments need concerted effort to further liberalise to promote growth of intra-Africa connectivity. In their view, airlines across the world continue to make profits however there is a projected $100 million loss in 2018 due to the failure by governments to open their skies.
In spite of the changes, African airlines have found dynamic ways of breaking even. First of all, many of the airlines have customized affordable rates for the African traveler to act as an incentive to encourage people to travel more. For example in 2014, Kenya Airways launched Jambojet which is an economical flight for the average Kenyan. Since then it has increased their bookings from the middle and upper class citizens. Secondly airlines have increased the number of flights they have during a day to ensure that people can always travel at their convenience.
Finally the booking process has been simplified to make it faster and more convenient for every traveler. With the evolution of the digital financial services industry most of the flights are booked online and the payment processed through mobile and card payments. Fast Jet is one of the companies that have adopted the online booking services and they use Pesapal which is simple, secure and reliable when it comes to the online payment transactions.
On the flip side, it is in times of true adversity that the strength of a company is born. It only gets better with these ones as long as you remain innovative and dynamic. If you are looking to partner with Pesapal for payment services, email us on [email protected].