Monday, March 12, 2018 /08:45
AM / FBNQuest Research
on data provided by the Federal Airports Authority of Nigeria, the National
Bureau of Statistics (NBS) has released its latest report on air passenger
traffic. The report estimates total traffic in Q4 2017 at 3.7 million
passengers, representing an increase of 5% y/y and a decline of -0.6% q/q.
we consider the full year data, the report reveals total traffic of 13.4
million passengers in 2017 representing a -8.0% y/y. Generally, there is a more
positive outlook for the economy. However, purchasing power and consumer
confidence remain subdued. We expect increased patronage as consumption demand
gradually picks up.
For Q4, we noticed passenger traffic on
arrival flights outweighed departure. Passenger traffic on arrivals accounted
for 51% of total domestic air travel and 52% of total international air travel.
According to the report, 72% of total air
passengers in Q4 were domestic travelers. There was an increase in passenger
traffic of 4% q/q for domestic travel.
We note a 26% q/q increase on the Owerri
route in Q4 and an increase of 60% when compared with Q1. Generally, December
attracts increased traffic on this route as most Easterners return to the East
for Christmas festivities via this route.
As for international travel, air passenger
traffic contracted by -11% q/q and grew marginally by 1% y/y. We suspect the
decline mirrors the adjustment to spending patterns by most Nigerian nationals,
local tourism industry has recorded a pick-up in activity as vacations abroad
are now relatively expensive due to fx depreciation.
We understand that the Nigerian Civil
Aviation Authority recently received about 15 new operating permit
applications. This increased interest in securing airline permits may be linked
to a perceived positive outlook for the sector. The national accounts for Q4
2017 show that air transport grew by 5% y/y.
- Lagos, Abuja, Port Harcourt, Owerri and Kano
Airports Served Over 92% of Total Passengers in Q4 2017
- 4,175 Ocean Going Vessels Recorded at Nigerian
Ports in 2017
- 2,489 Road Traffic Crashes Occurred in Q4 2017 -
- Aliko Dangote Assures Timely Completion Of Apapa
Road to Address Reported N20bn Daily Loss
- Average Air Fare Increased by 7.34% YoY in
January 2018 - NBS
- Dangote, Flour Mills on course to complete
repair of Apapa Wharf Access Road