The Digest:
Ibom Air has warned that the aviation fuel crisis is fast becoming unsustainable, with the cost of fueling a single flight skyrocketing from an average of N2.1 million in January to approximately N7.6 million as of April 26, a staggering increase of over 350 percent. The airline said domestic airlines are baffled as to why jet fuel prices in Nigeria have ballooned way above the rest of the world, especially as marketers obtain 95% of fuel from Dangote Refinery.
Key Points:
- Ibom Air operates one of the most fuel-efficient fleets in the domestic market.
- Airlines have absorbed immense operating losses, expecting the crisis to pass quickly.
- Fuel price increases have persisted for nearly two months with no end in sight.
- The airline may be forced to reduce capacity or take other actions.
- If the situation persists, airlines may not be able to continue operating.
Ibom Air called on fuel marketers to reconsider pricing to keep the airline business model viable.
Sources: Daily Trust (Abdullateef Aliyu)
