Aviation subsector, others struggle as recession bites

The aviation subsector under the transportation and storage sector contracted by 38.86 per cent in the third quarter of 2020, according to the latest GDP report released by the National Bureau of Statistics.

In the latest report, the subsector contracted Q-o-Q by 57.38 per cent and 15.23 per cent Y-o-Y.

According to the report, “In real terms, the transportation and storage sector contracted by -42.98 per cent in Q3 2020, representing a slightly better performance than the preceding quarter when it recorded -49.23 per cent, an increase of 6.25 per cent.  Year on Year, growth was 18.24 per cent.”

All activities under transport and the storage industry recorded negative growth rates, except for post and courier services.

Part of the report read, “All activities under the transport and storage industry recorded negative growth rates except post and courier services. Quarter on quarter, growth stood at 29.69 per cent. Transport activities contributed 1.28 per cent to nominal GDP in Q3 2020, a decline from the 2.03 per cent recorded in the corresponding period of 2019, but higher than 1.13 per cent recorded in the second quarter of 2020.”

The subsector suffered, owing to the COVID-19 pandemic pay cuts and job losses.

Several pilots were sacked and as well some Ground handling companies also took a beating, as Skyway Aviation Handling Company Plc and the Nigerian Aviation Handling Company Plc saw their combined revenue for nine months ended September 30, dip by N2.7bn to N10.1bn from N12.8bn in the same period of 2019 – representing 21.2 per cent reduction in revenue in the period under review, according to the financial statements of the companies listed on the Nigerian Stock Exchange.