Ibom Air decries N7.6m fuel cost per flight

By Damilare Adeleye

Management of Ibom Air has raised concerns over the escalating cost of aviation fuel, disclosing that it now spends about N7.6 million to power a single flight.

The airline said the surge in fuel prices is placing significant financial strain on operators, expressing concerns about the sustainability of current operations if the trend persists.

In a statement issued on Monday, the carrier described the situation as unprecedented, highlighting the speed and scale of the increase in fuel expenses within a short timeframe.

“The fuel price situation is an unprecedented crisis for Nigeria’s domestic airlines. At Ibom Air, the cost of fueling our aircraft has more than tripled between January and today. From an average of N2.1m per flight in January, as at today, the 27th of April, we are paying approximately N7.6m to fuel every flight,” the airline stated.

It noted that the spike represents a sharp escalation in operating costs over the past two months, intensifying pressure on already thin margins within the industry.

Ibom Air also questioned the steep rise in domestic aviation fuel prices, particularly against the backdrop of global market trends and the largely local sourcing of the product.

“This is a more than 350 per cent increase since the beginning of March, a space of just seven weeks! And our aircraft are some of the most fuel-efficient in the domestic market.“

At this point, domestic airlines are baffled at why the price of aviation fuel in Nigeria has ballooned to this level, way above the rest of the world, while the fuel marketers obtain 95 per cent or more of their aviation fuel from Dangote Refinery,” the statement further read.

Despite the spike, the airline said operators have been constrained in adjusting ticket prices, citing competition and broader considerations.

“The situation is exacerbated by the fact that a combination of competitive pressures and patriotism has prevented a commensurate increase in our fares, meaning that we and our fellow domestic airlines have had to absorb the immense operating losses resulting from this situation,” it noted.

Ibom Air added that initial expectations of a short-lived disruption have proven inaccurate, with the crisis persisting and worsening over nearly two months.

“We chose to do this believing that the crisis would pass in a week or two, but it has persisted now for nearly two months, continuously increasing, with no reprieve in sight as of today. While we continue to do everything we can to maintain normal operations, it is clear to us that the current conditions are unsustainable.“

We note that, worldwide, where fuel price increases are nowhere near what we are facing in Nigeria, airlines are reducing flights to manage the situation.

“We, too, will have to take whatever ameliorating actions we can in the days ahead, including reducing our capacity if necessary, to be able to continue to provide services to our customers and our country,” the airline said.

The carrier warned that prolonged cost pressures could have wider implications for the sector, potentially disrupting airline operations if unresolved.

“We also note that, if this situation persists much longer, airlines will not be able to continue operating just to pay for fuel and nothing else. We call on the fuel marketers to seriously reconsider the pricing of aviation fuel to make the airline business model continue to work in Nigeria,” it added.

Recall that last week, President Bola Tinubu approved a 30 per cent reduction in charges owed by airlines to Nigeria’s aviation agencies.

The Minister of Aviation, Festus Keyamo, SAN, disclosed the development last Thursday, noting that the decision was aimed at easing the burden of rising operational costs on airline operators.

This came after airline operators in Nigeria had earlier warned of a possible shutdown of operations or an increase in airfares due to the surge in aviation fuel prices.