Questioning US Passenger Compensation Rule, Strengthening Aviation’s Contribution to African Development; More Industry News

Questioning US Passenger Compensation Rule, Strengthening Aviation’s Contribution to African Development & More Industry News
Welcome back! This week we take a closer look at how passenger demand rebounded sharply in the first quarter of 2023 and the upcoming Focus Africa Conference. We also have another great career opportunity. Let’s get to it.

Feature of the Week: African Aviation Set to Soar

Africa comprises 54 nations and some 1.5 billion people. That equates to approximately 28% of the world’s countries and close to 20% of the world’s population. Yet African aviation represents just 2.1% of total air traffic.

Infrastructure constraints, high costs, lack of connectivity, regulatory impediments, slow adoption of global standards and skills shortages affect the customer experience and are all contributory factors to African airlines’ viability and sustainability.

The continent’s carriers suffered cumulative losses of $3.5 billion for 2020–2022. Moreover, IATA estimates further losses of $213 million in 2023.

“The potential for growth is clear. And the economic boost that a more successful African aviation sector will deliver has been witnessed in many economies already.” -Willie Walsh, IATA’s Director General

More on Focus Africa
IATA’s Focus Africa Conference will concentrate on priorities to strengthen aviation’s contribution to Africa’s economic and social development and improve connectivity, safety and reliability.

Focus Africa will bring together airline CEOs along with aviation leaders, decision makers and influencers from Africa, the Middle East and globally to collaboratively drive the advancement of aviation in Africa.

Find out more about the speakers and sessions or register now.

Focus Africa is taking place in Addis Ababa, Ethiopia, on 20-21 June 2023, with Ethiopian Airlines as the host airline.

US Proposed Passenger Compensation Rule Will Raise Costs but Not Solve Delays

IATA criticized the decision by the US Department of Transportation (DOT) and the Biden Administration to raise the cost of air travel by mandating airlines provide financial compensation to travelers for flight delays and cancellations, in addition to their current care offerings.

According to the announcement, the rule will be issued later this year.

“Airlines work hard to get their passengers to their destinations on time and do their best to minimize the impacts of any delays. Airlines already have financial incentives to get their passengers to their destination as planned. Managing delays and cancellations is very costly for airlines. And passengers can take their loyalty to other carriers if they are not satisfied with service levels. The added layer of expense that this regulation will impose will not create a new incentive, but it will have to be recouped – which is likely to have an impact on ticket prices,” said Willie Walsh, IATA’s Director General.

Learn more about how aviation involves a number of different partners , each of whom has a vital role in ensuring the smooth operation of the air transport system.

Career Opportunity of the Week: Senior Data Architect

Reporting to the Chief Data Officer (CDO), the Senior Data Architect will be responsible for designing, building, and maintaining the data architecture for IATA. The ideal candidate should have a strong understanding of data architecture, data modeling, data warehousing, and data governance.

This position is based in Geneva, Switzerland.

Click here to learn more about the day-to-day responsibilities and other details.

Not quite the right fit but still interested in other excellent opportunities? Visit our career site to start your new journey.

News in Brief

✈ ‘A Pleasure to Host’: IATA RVP Peter Cerdá on Aviation Day in Colombia
✈ Joint IATA–UPU webinar: Stakeholders’ Compliance and Readiness for Mail Transport Under PLACI Regimes
✈ IATA’s Modern Airline Retailing Initiative: Accelerating Toward 100% Offers and Orders

Chart of the Week: Passenger Demand Rebounds Sharply In First Quarter Of 2023

Global passenger traffic ended the first quarter of 2023 on a strong note , with revenue passenger-kilometers (RPKs) increasing by 58.3% year-on-year.

This growth recovered global RPKs to 85.9% of pre-pandemic levels, signaling a significant improvement from the previous year.

Although the recovery in passenger traffic has been broad-based, the Asia-Pacific region was a major force behind the recent developments in industry RPKs. The reopening of China’s air travel markets has played a pivotal role in driving the region’s significant rebound, supported by the continued easing of travel restrictions.

Learn more about the #WeeklyChart and how passenger demand rebounded sharply in the first quarter of 2023.

Jet Fuel Price Monitor (12 May)