Nigerian Airlines to Suspend Operations from May 9 over High Cost of Aviation Fuel

The Airline Operators of Nigeria (AON) has served notice of ceasing operations on Monday, May 9, over the high cost of aviation fuel otherwise known as JetA1.

In a statement co-signed by the leading executives of Air Peace, Max Air, Arik Air, United Nigeria Airlines, Aero Contractors, Ibom Air, Azman Air, Overland Airways and Dana Air, the airlines complained of subsidising their services to customers in the last four months due to the “astronomical hike” in the price of aviation fuel from N190 per litre to N700.

“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 AON statement said.

“The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties,” said the operators who recently had to raise base fares fir a one hour flight to N50,000. 

The operators revealed that aviation fuel is about 40% of an airline’s operating cost globally but the recent hike in prices has shot up Nigerian airlines’ operating cost to about 95%.

Read the Statement in full below:

AIRLINE OPERATORS TO SHUT DOWN OPERATIONS AMIDST HIGH COST OF JETA1, SYMPATHISE WITH PASSENGERS 

 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 up Nigeria’s operating cost to about 95%.  

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. 

Signed: Alhaji (Dr.) Abdulmunaf Yunusa Sarina President  Jointly signed by: 1. Alhaji Shehu Wada – Executive Director, Max Air 2. Dr. Obiora Okonkwo – Chairman, United Nigeria Airlines 3. Capt. Mfon Udom – CEO, Ibom Air   4. Capt. Roy Ilegbodu – CEO, Arik Air 5. Capt. Abdullahi Mahmood – CEO, Aero Contractors 6. Alhaji Faisal Abdulmunaf – MD, Azman Air 7. Capt. Edward Boyo – CEO, Overland Airways  8. Mr. Sukh Mann – Deputy CEO, Dana Air 9. Barr. Allen Onyema, Chairman, Air Peace  

CC:  Honourable Minister of Aviation DG, Nigerian Civil Aviation Authority 

Demola Ojo 

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