Emirates' Nigerian operations, relaunched four months ago, are exhibiting strong recovery, achieving over 75 percent passenger load factors.
This data was presented at a Lagos Business School breakfast briefing by Bismarck Rewane, Managing Director/CEO of Financial Derivatives Company Limited.
According to the report, “Emirates flights are seeing load factors above 75 percent on the Lagos – Dubai route.”
Just to recap, Emirates resumed its services to Nigeria in October 2024, two years after halting operations due to various issues, including unresolved trapped funds.
Aviation experts attribute the airline's resurgence to the high travel demand during the festive season and the connecting flights to other destinations.
Yinka Afolami, President of the National Association of Nigeria Travel Agencies (NANTA), noted that the rise in load factors is due to both business and leisure travelers' fondness for Dubai, along with the airline's strong links to the USA, UK, and beyond.
Additionally, it’s worth mentioning that last November, Emirates rolled out free transit visas for Nigerian passengers traveling through Dubai, which travel agents say boosted passenger numbers during that period.
This growth in load factors is also seen in other foreign airlines increasing their flight frequencies to Nigeria.
Rewane's presentation at LBS emphasized the increased airline services to Lagos, noting Delta's addition of a daily New York flight supplementing its Atlanta route, although these New York flights are scheduled to conclude in February.
Qatar Airways is providing transatlantic route discounts, while United Airlines directly competes with Delta Airlines on US direct flights. Potential visa restrictions could impact US passenger traffic.
The report further suggested that Nigeria should review airport concession agreements established under the Buhari administration, characterizing such a review as a significant setback for the nation.
The report indicates that the International Air Transport Association (IATA) forecasts improved airline profitability in 2025, attributable to lower fuel expenses and increased global trade. The IATA projection is a $36.6 billion global net profit.
The report further projects profitability across all global regions, driven by rising passenger numbers, a stronger US dollar, and continued strong performance from major airline alliances, with the Star Alliance anticipated to lead passenger flows between emerging and developed markets. African airlines are projected to achieve a 1% profit margin, while Middle Eastern carriers are projected to reach 7.7%.