• Thursday, March 28, 2024
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BusinessDay

Flight disruptions loom as fuel scarcity returns

Air fares to rise further as foreign airlines FX rate hit N634/$

Air passengers may experience flight delays and cancellations this festive season owing to the re-emergence of aviation fuel scarcity across several states in Nigeria.

The Airline Operators of Nigeria (AON) has notified the public of the “impending disruptions in scheduled flight operations due to the scarcity of aviation fuel, otherwise known as JET-A1, which reared its ugly head again in the past few days”.

“This unintended development is a pain on airline operators and a stain on the industry especially at this time of mass movement of people for the Christmas and New Year festivities,” Obiora Okonkwo, spokesman of AON, said in a statement on Tuesday. “While we do our utmost best to manage the situation and ensure safe flight operations, we plead the understanding of the traveling public in the circumstance.”

Okonkwo called on the concerned authorities including product importers and marketers to do their best to resolve the fuel scarcity so as to ease the stress it would bring on the travelling public.

“As airline operators, we remain committed to doing all that is necessary to ensure seamless services and safe air travels in our dear country,” he added.

The country had previously battled with a months-long aviation fuel crisis, which began in late February and threatened the ability of airlines to continue operations. Then the price of JetA1 jumped from N200 per litre in December 2021 to over N400 per litre in February and N800 per litre in the third quarter.

Allen Onyema, vice president of AON and chairman of Air Peace, had earlier in the year warned that if nothing was done concerning the cost of aviation fuel, the fuel crisis would force airlines to suspend operations.

Read also: Nigerian airlines warn of flight disruptions as fuel scarcity returns

“Aviation fuel prices may take airlines out, not only in Nigeria but everywhere in the world. Some airlines outside Nigeria have shut down because of the rising cost of aviation fuel. If these things are not addressed in Nigeria, it can affect the bottom line of all airlines in Nigeria,” he said at the time.

He said when airline operators decided to charge N50,000 as base fare, they looked at cost per seat and discovered that airlines would still not make profit if they charged N60,000 because multiple taxation was eroding airlines’ revenues.

One year ago, the economic base fare for tickets was between N25,000 and N30,000 but the airlines increased economy tickets to N50,000 and N60,000 in February.

The operators later increased base fare from N50,000 to over N80,000. Currently, the cost of a one-way ticket for a one-hour flight costs between N75,000 and N130,000, depending on the destination and the number of airlines operating the route.