BREAKING: Nigerian Airlines To Shutdown Operations On Monday Over Cost Of Aviation Fuel

…Says Average Cost Per Seat Is N120,000

Nigerian airlines will shutdown their operations on Monday, 9 May 2022 following the hike in aviation fuel price (JetA1 fuel).

The airlines announced the development in a statement signed by the President of Airline Operators of Nigeria (AON), Abdulmunaf Yunusa and copied to the Minister of Aviation, Hadi Sirika and the Director General of the Nigerian Civil Aviation Authority (NCAA).

The airlines had lamented the impact of aviation fuel on their operations which rose to N600 in February.

This led to the increment of airfares from around N25,000 to N50,000 across all routes.

But the Federal Competition and Consumer Protection Commission faulted the recent increase in airfare, describing the action as illegal and against the anti-competition law.

The airlines while disclosing the development said the Jet A1 fuel price has risen to N700 and now constitutes 95 per cent of their operating cost.

AON said in the aviation sector globally, cost of fuel only constitutes 40 per cent of operating cost of airlines.

AON said, “It is with a great sense of responsibility and patriotism that the Airline Operators of Nigeria (AON) have carried on deploying and subsidizing their services to our highly esteemed Nigerian flying public in the last four months despite the steady and astronomical hike in the price of JetA1 and other operating costs.”

“Overtime, aviation fuel price (JetA1) has risen from N190 per litre to N700 currently. No airline in the world can absorb this kind of sudden shock from such an astronomical rise over a short period. While aviation fuel worldwide is said to cost about 40% of an airline’s operating cost globally, the present hike has shut Nigeria’s operating cost to about 95 per cent.

“In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and Oil Marketers with the view to bringing the cost of JetA1 down which has currently made the unit cost per seat for a one hour flight in Nigeria today to an average of N120,000. The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.

“While AON appreciates the efforts of the current government under the leadership of President Muhammadu Buhari to ensure air transport in Nigeria grows, unfortunately, the cost of aviation fuel has continued to rise unabated thereby creating huge pressure on the sustainability of operations and financial viability of the airlines. This is unsustainable and the airlines can no longer absorb the pressure.

“To this end therefore, the Airline Operators of Nigeria (AON) hereby wishes to regrettably inform the general public that member airlines will discontinue operations nationwide with effect from Monday May 9, 2022 until further notice.

“AON uses this medium to humbly state that we regret any inconveniences this very difficult decision might cause and appeal to travelers to kindly reconsider their travel itinerary and make alternative arrangements.”