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Airlines Face Hard Times As Aviation Fuel Price Jumps

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Indications have just emerged that at least three Nigerian domestic airlines may shut down any time from now following the unbearable hike in the price of aviation fuel, otherwise known in aviation circle Jet A1, Nigeria Tribune reports.

This is just as Airline Operators of Nigeria (AOC) has raised the alarm of how the price of the commodity has further increased to N714 per liter in some airports.

The present increase in the price of aviation fuel according to the airlines will further complicate issues regarding domestic airline business in the country.

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The Vice-Chairman of the airlines, Mr Allen Onyema declared this at the ongoing maiden edition of the Federal Airports Authority of Nigeria (FAAN) National Aviation Conference (FNAC) in Abuja with the theme: ‘Advancing the Frontiers of Possibilities for Safe, Secure and Profitable Air Transport’.

Onyema therefore warned that if the federal government fails to intervene in the precarious situation that more airlines may shutdown operations in the coming months.

Equally, other companies in the Nigerian aviation industry including: aviation fuel marketers, airline operators, ground handling companies and catering services among others have lamented the scarcity of foreign exchange and the collapse of naira against major currencies.

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The AON Vice-Chairman though did not reveal the names of the troubled airlines that may soon fold up in the coming months, but information making the rounds is that the affected airlines are facing difficulties in their operations due to aviation fuel prices and other challenges.

While acknowledging the fact that the aviation fuel challenge was not peculiar to Nigeria alone, Onyema emphasised that “ours is made worse because of the slump of naira against major currencies, especially the dollars.”

According to Onyema, in order to address the challenge, though the Federal Government had approved 10,000 metric tonnes of aviation fuel to the airlines, the carriers were yet to access it even as he expressed hope that the airlines may start lifting the 10,000 metric tonnes of aviation fuel from Thursday, June 16th 2022.

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