Airlines face low demand during South Africa’s typical peak season

Posted on 8 November 2020

The global COVID-19 pandemic has heavily impacted travel industries across the world. Despite South Africa’s borders reopening on October 1, many airlines are struggling with low demand in what is usually peak travel season for the country.

Some airlines are facing low demand in peak season. Image: Unsplash

Restrictive international travel regulations have made it difficult for travellers to explore the world, leading to many aircrafts operating with far fewer passengers.

Many key travellers come from countries currently under the red list and are banned from entering the country for leisure purposes.

As of October 19, the updated list features 22 countries on the red list, down from the previous 60. These are:

  • Argentina,
  • Bangladesh,
  • Belgium,
  • Brazil,
  • Canada,
  • Chile,
  • Colombia,
  • France,
  • Germany,
  • India,
  • Indonesia,
  • Iran,
  • Iraq,
  • Italy,
  • Mexico,
  • Netherlands,
  • Peru,
  • Philippines,
  • Russia,
  • Spain,
  • United Kingdom and
  • USA.

Some airlines have been forced to cancel flights altogether, or combine flights to make flying economically viable.

Speaking to Tourism Update, chairperson of the Board of Airline Representatives South Africa (Barsa) Carla da Silva said that airlines are reporting dismal load factors to and from South Africa, at an average of 20-40%.

‘As you can imagine, this is a very difficult time for airlines as they try to navigate the correct balance between supply and demand. Airlines usually rely on all sectors of the market to fill their aircraft but the current regulations allow only business travellers to enter South Africa if originating from high-risk countries,’ she said.

‘This reduction in demand is compounded by a reduction in business traffic – as corporations have become accustomed to conducting business on a virtual platform – a short-term decrease in demand for long-haul travel destinations, and a slow return in consumer confidence for flying. The second wave of infections in Europe is also impacting the situation.’

EgyptAir regional GM South Africa, Hossam Zaky confirmed to Tourism Update that the airline plans to operate only three flights to South Africa in November, due to low demand.

‘Our load factor is very low in November and does not exceed 18% and 28% for our flights on November 12 and 13. December is supposed to be high season for South Africa but, despite this, our flights during this month are still almost empty,’ he said.

Barsa also announced during an address to Parliament’s Portfolio Committee on Tourism that some airlines are threatening to leave South Africa in favour of neighbouring countries as new hubs.

‘The biggest risk for South Africa is losing its strategic hub status, as the country currently plays the role of the gateway to Africa and Southern African Development Community countries,’ said Barsa.

 






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