The Airline Operators of Nigeria have raised serious concerns over the surging operational costs, particularly with aviation fuel prices surpassing 1300 naira, as revealed in a statement by Obiora Okonkwo, the Spokesman of the Airline Operators of Nigeria, on Friday.
Okonkwo emphasized the urgent necessity for government intervention to avert the potential collapse of numerous airlines.
The aviation sector faces disruptions due to fluctuating forex rates and the unprecedented rise in aviation fuel costs to 1300 naira per litre.
Chairing United Nigeria Airlines, Okonkwo highlighted the unexpected spike in aviation fuel prices from 700 naira per litre and the escalation of the exchange rate to 1400 naira per dollar, resulting in substantial losses for airlines.
He pointed out that passengers who booked tickets earlier at lower rates are now being transported at the current elevated costs, contributing to the airlines’ revenue losses.
Moreover, Okonkwo underscored the broader economic impact, stating that many businesses in Nigeria are witnessing reduced returns, leading to a decline in essential passenger numbers during both peak and off-peak seasons.
Consequently, airlines are grappling with maintaining sufficient load factors to support operations amid a decreased number of travelers for tourism and social engagements during the current low season.