The GDP report recently released by the National Bureau of Statistics indicates that air transport under the transportation and storage sector contracted by 38.86% in the third quarter of 2020.
According to the report, the subsector contracted Q-o-Q by 57.38% and 15.23% Y-o-Y.
READ: Non-Performing loans hit 4-year low as Banks recover N496 billion
The transportation and storage sector comprising road transport, rail transport and pipelines, water transport, air transport, and transport services experienced growth of 35.06% in nominal terms (year-on-year), as it sought to gradually recover from the restricted movements of passenger and goods.
According to the report, “In real terms, the transportation and storage sector contracted by -42.98% in Q3 2020. This rate represented a slightly better performance than the preceding quarter when it recorded -49.23%, an increase of 6.25%. Year on Year, growth was 18.24%.”
(READ MORE: IGR: States generate N612.9 billion in H1 2020, dips by 11.7% )
What you should know
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%. Transport activities contributed 1.28% to nominal GDP in Q3 2020, a decline from the 2.03% recorded in the corresponding period of 2019, but higher than 1.13% recorded in the second quarter of 2020.”
READ: Nigerian economy slips into recession as GDP contracts by 3.62% in Q3 2020
READ: Debt burden of the least developed nations rises to $744 billion – World Bank
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% reduction in revenue in the period under review, according to the financial statements of the companies listed on the Nigerian Stock Exchange.
Explore Data on the Nairametrics Research Website