As the aviation and travel industries continue their recovery from the impacts of the global pandemic, FlySafair, a prominent low-cost airline, recently held a media round table to discuss key developments and trends shaping the industry’s trajectory. Hosted by Chief Marketing Officer, Kirby Gordon, the event shed light on crucial insights and future plans for FlySafair.
Global Recovery and Local Resilience: The aviation and travel sectors faced unprecedented challenges during the pandemic, with recovery becoming evident three years on. By the close of 2023, the global aviation market had rebounded to 97% of 2019 levels, with tourism reaching nearly 90% of pre-pandemic levels worldwide. In Africa, aviation mirrored global trends, achieving a 93% recovery by the end of 2023.
In South Africa, the recovery is on an upward trajectory, with Airports Company South Africa (ACSA) reporting an 87% recovery in passenger numbers across its network and flight numbers reaching 93% of 2019 levels. Tourism in the country has also demonstrated robust recovery, with international visitors surpassing the million mark for the first time since the pandemic.
Kirby Gordon emphasized the resilience of the industry but noted the importance of addressing emerging trends and developments.
Key Trends Unveiled: During the round table, Gordon unveiled six prominent industry trends that demand attention:
- Health of Aviation Infrastructure in South Africa: The air transport sector significantly contributes to South Africa’s economy, creating jobs and contributing to GDP. However, issues related to airport infrastructure maintenance persist, impacting airlines and consumers alike. FlySafair has taken steps to address gaps, but challenges remain, especially when mishaps fall under ACSA’s remit.
- Rise of the Travel Agent: Contrary to the dominance of direct spend with airlines, there has been a notable increase in consumer spend with travel agents. Factors such as the complexities of travel highlighted by the pandemic, increased living costs, and the growth of loyalty schemes contribute to this shift.
- Fuel Supply and Demand Dynamics: Jet fuel shortages and price fluctuations, influenced by global events like the Russia-Ukraine war, have impacted ticket prices. South Africa’s dependence on imported jet fuel has kept running costs high for airlines, affecting industry pricing dynamics.
- High Season Consumer Trends: The December-January holiday season marked a turning point for local travel recovery, with increased consumer spending on air travel and restaurants. Domestic air passengers approached 97% of pre-pandemic levels, reflecting a prioritization of leisure activities despite increased costs.
- The Future of Aviation Technology: Technological advancements, particularly in Artificial Intelligence (AI), are transforming the aviation industry. Generative AI applications are helping airlines better serve customers, improve costs, and enhance safety and reliability.
- The Future of Sustainable Aviation: Amid concerns about the industry’s environmental impact, there is a growing focus on sustainable aviation fuel (SAF) and alternate fuel technologies. While SAF remains a challenge due to limited availability in South Africa, airlines are actively working to minimize emissions through efficient flying.
FlySafair’s Future Plans: Gordon concluded the event by outlining FlySafair’s plans for the future. After a year of rapid regional and local expansion in 2023, the airline aims to focus on identifying strategic routes and refining its fleet in 2024. While there are no immediate plans to add new routes, FlySafair will launch its Cape Town to Kruger route in early April. The airline, now the largest in South Africa, will also swap out older aircraft for new ones to maintain efficiency and service quality.
As FlySafair navigates the evolving aviation landscape, Gordon expressed optimism for the industry’s continued recovery and growth.