About 7.6 million passengers daily, 23 billion travellers and 426 million tons of cargo during the past decade: These figures, released by the International Air Transport Association (Iata), demonstrate the power and influence of airlines in world tourism, travel and world economies.

This is a confirmation that our industry is closely linked to the health of world economies. Air transport plays a vital role in the economic development of all countries, especially in fast-growing emerging economies across the African continent. Aviation provides connections between countries, creates jobs and supports trade and tourism all over the world.

As a mode of travel, it is one of the most competitive but volatile businesses, constantly plagued by a number of uncertainties, including rising fuel prices, natural disasters, geopolitical developments, customer centricity and many others.

Iata says African carriers are still expected to break-even. New trade routes with Asia are developing and markets within the continent are reflecting the improvement in economic development in many African economies.

Competition has been and will always be fierce as airlines struggle to keep passenger numbers at profitable levels.

That is why even though Iata, whose annual report is often eagerly awaited by the transportation business, says the industry’s overall revenue in 2012 is expected to rise to $618 billion (R5 trillion) from $596bn, costs to go up from $583bn to $609bn and the operating profit of $8.7bn would result in a net profit of $3.5bn, the industry is facing significant challenges.

So what are the challenges facing airlines in 2012?

To name just a few, our major challenges are the euro zone crisis, taxes, rising fuel costs, cost efficiency and the battle to attract customers.

Any failures to shore up the euro and prevent a new shock to the global banking system will hit air transport across the globe, punching holes into the pockets of tourists and crippling any chances of predicted profits.

Also, as the major airlines – burdened by stiff competition for capacity and an overwrought cost structure – struggle to stay aloft, a dogfight is brewing with low-cost competitors as they seek to unravel a tangle of brands interchangeable in the minds of consumers.

That is why to compete with low-cost carriers, big airlines are rescheduling flights to off-peak hours to ensure quicker turnaround times, simplify fleets, and cut out the middleman by doing more of their bookings and check-ins on the internet.

Jet fuel is one of the biggest cost structures for air travel. Jet fuel prices are very highly correlated with oil prices.

So, where does our continued survival lie? The airline business is a tough, competitive industry that has been built upon meeting the needs of customers. All airlines need to do a better job of ensuring that passengers have enjoyable air travel.

We have to balance good customer service with profitability. With the right measurement tools in place, airlines can pinpoint the service improvements that will have the most impact on customer behaviours like loyalty and purchase decisions.

Customers and the consumers are becoming more and more knowledgeable, demanding to have things in their way. In the face of competition airlines have to make our value offering more attractive.

We must find a way to differentiate and achieve a sustainable competitive advantage against other modes of transport.

If we listen to our customers then we can proudly say we pride ourselves in providing a comfortable and enjoyable in-flight experience. Then we can say our amenities, combined with our customer service, truly provides a differentiated and better experience.

So in 2012, it is our goal to make flying the way it used to be – fun, exciting, interesting or simply relaxing.

Inati Ntshanga is CE of SA Express Airways.