Embraer (NYSE: ERJ/B3: EMBR3) has published a report on undeveloped possibilities to enhance air connections within Africa. The comprehensive study highlights the key role of improving air travel in promoting economic growth and development across the African continent, and was presented today at the Aviadev Conference held in Zanzibar.
According to the International Air Transport Association (IATA), Africa accounts for 18% of the world's population, despite accounting for 18% of the world's population, but with less than 3% of the global GDP and only 2.1% of global passenger and cargo traffic. This disparity is fundamental to the continent's limited area air connections and is a key bottleneck for Africa's economic and aviation development.
Africa's GDP is expected to grow at 3.8% per year over the next 20 years, with revenue passenger kilometres (RPK) growth projected to be 4.4% per year, surpassing growth rates in Europe and North America. Africa has the lowest travel trend, but its growth potential is immeasurable. Development of connectivity within the region is a key driver of this growth.
Current connection challenges:
Currently, 64% of the African internal market is offered on less than seven flights a week, indicating an important opportunity to improve connectivity. Many African origins and discarded (O&D) markets remain underserved or not serviced at all by direct flight, forcing some passengers to connect distant hubs as far away as Europe and the Middle East.
Strategic Opportunities:
Embraer's report identifies 45 in Africa routes that are currently not available for direct flights, which maintain multiple weekly direct flights and supports the region's economic growth. The top 10 routes can use 100-seat aircraft to maintain at least three direct flights per week.
The report also utilizes the intra-Africa stimulus curve developed by Embraer, based on traffic data over the past decade. The data show that stimulus coefficients vary depending on the market size. For example, in a market with 50 passengers before a direct flight opens, demand will increase by 40%. For small markets such as 20 passengers, opening direct flights increases demand by 80%.
Efficient hub operations and increased frequency are also important to improve the quality of connectivity, ensuring passengers are more flexible and convenient.
Aircraft deployment:
Right-sized aircraft such as the Embraer E2 are essential for developing connectivity in fragmented markets. These aircraft offer lower travel costs and increased range, making them ideal for both short and medium-range routes, and are excellent at opening, maintaining and growing new routes.
“This report and the data behind it highlight the important possibilities of new routes across Africa,” said Stephen Hanneman, senior vice president of sales and marketing, head of the Regional Middle East and Africa at Embraer Commercial Airlines.
“Aviadev Africa is dedicated to supporting the development of air connections to sub-Saharan Africa. Embraer's new report illustrates the enormous opportunities already available to enhance connectivity within Africa and ensure a robust and resilient future.
