All Nigerian airlines have threatened to suspend operations due to the increase in aviation fuel, popularly known as Jet A1, to N700, which will raise their operational costs.
Under the banner of the Airline Operators of Nigeria (AON), they stated they have been subsidizing their services for the past four months since they can no longer bear the unexpected increase.
Air Peace, Dana Air, United Nigeria Carriers, Arik Air, Azman, Overland Airways, and Aero Contractors are the airlines.
According to them, whereas aviation fuel accounts for roughly 40% of an airline’s operational costs worldwide, the current increase has brought Nigeria’s running costs to almost 95%.
“Despite the steady and astronomical hike in the price of Jet A1 and other operating costs, the Airline Operators of Nigeria (AON) have continued to deploy and subsidise their services to our highly esteemed Nigerian flying public in the last four months with a great sense of responsibility and patriotism,” the statement reads.
“The price of aviation fuel (JetA1) has climbed from N190 per litre to N700 per litre over time. No airline in the world can withstand such a massive price increase in such a short period of time. While aviation fuel is considered to account for roughly 40% of an airline’s operating costs worldwide, the current surge has brought Nigeria’s operating costs to around 95%.
“In response to this, airlines have engaged the Federal Government, the National Assembly, the Nigerian National Petroleum Corporation (NNPC), and oil marketers in an effort to reduce the cost of JetA1, which has driven the unit cost per seat for a one-hour flight in Nigeria to an average of N120,000 today.” The latter cannot be fully passed on to those who are already having significant problems.
“While AON applauds the current government’s efforts to guarantee that air transportation in Nigeria grows under President Muhammadu Buhari’s leadership, the cost of aviation fuel has continued to rise unabated, putting significant pressure on the airlines’ operations and financial viability.” This is unsustainable, and airlines can no longer withstand the strain.
“To this end, the Airline Operators of Nigeria (AON) regretfully informs the general public that member airlines will cease nationwide operations on Monday, May 9, 2022, until further notice.”
“AON uses this platform to humbly express our apologies for any problems this tough choice may cause travelers, and we respectfully request that they reconsider their travel plans and make alternate arrangements.”
