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Airlines in Nigeria plan route cut over rising fuel price

Operators say the increase in price of jetA1 has affected the profitability of the airline business

Domestic airlines have concluded plans to dump less-viable routes as skyrocketing aviation fuel prices cause more flight disruptions amid dwindling revenue and the rising cost of operations.

Some of the less-lucrative routes are Sokoto, Katsina, Yenogoa, Kebbi, Gombe, Yola, Maiduguri, Bauchi, Ilorin, Jos, Ibadan, Calabar, and Akure.

Jet A1 has hit an all-time high of N822/litre in Lagos, N859/litre in Abuja, N852/litre in Port Harcourt, N890/litre, and N892/litre in Yola and Maiduguri respectively.

According to the operators, the increase in the price of jetA1 has affected the profitability of the airline business.

The development came as Nigeria’s oldest airline, Aero Contractors, suspended operations on Wednesday over skyrocketing aviation fuel prices, inflation, and forex scarcity. Domestic operators under the aegis of the Airline Operators of Nigeria had said some carriers might collapse over a tough operating environment.

Speaking to The PUNCH in a telephone interview, industry expert and the Chief Executive Officer of the Centurion Aviation Security and Safety Consult, John Ojikutu said, “The high rise in aviation fuel prices did not start today nor did it start earlier than five years ago.

It started about 12 to 15 years ago. Prices have been irregularly increased almost monthly in spite of what the government called subsidies to fuel marketers. Within a year, it has quadrupled from N200/litre to N800/litre.”

“Those in the NNPC, Federation Account Allocation Committee, and the CBN should explain. The NNPC should explain why four refineries are not working.

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“Operators should have envisaged irregular forex demands in their business plans and that the CBN may not cope always with demands for forex if they are not making contributions in forex earnings into the Federation Account or have domiciliary forex account where such earnings are deposited possibly with interests in local or foreign currency. Without such setup, aviation forex demands will put too much pressure on other social/economic development demands.”

 

Source: punchng.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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