Our airline now buys N7.6m fuel per flight, Ibom Air laments

The Nigerian aviation sector is facing an unprecedented crisis, with domestic carriers like Ibom Air sounding the alarm over skyrocketing aviation fuel costs. Ibom Air revealed that it now costs approximately N7.6 million to fuel a single flight, a staggering increase from the N2.1 million average in January. This surge, representing over a 350% jump in just seven weeks, has placed immense financial pressure on airlines, threatening the sustainability of flight operations across the country.

“

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 the April, we are paying approximately N7.6m to fuel every flight.

What makes this situation particularly baffling for airlines is the disconnect between domestic fuel prices and global trends. Ibom Air pointed out that a significant portion of aviation fuel is sourced domestically, yet the price in Nigeria has ballooned far beyond international benchmarks. The airline questioned why fuel marketers are obtaining fuel, reportedly 95% or more, from the Dangote Refinery, yet the cost remains exceptionally high. This lack of transparency and the extreme price hikes have left domestic operators "baffled."

“

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.

Compounding the issue is the airlines' inability to fully pass these increased costs onto passengers. Competitive pressures and a sense of "patriotism" have reportedly prevented fare hikes commensurate with the fuel cost surge. Consequently, airlines have been forced to absorb "immense operating losses." Ibom Air noted that initial hopes for a short-lived crisis have faded, as the situation has persisted for nearly two months with no end in sight. The airline explicitly warned that the current operating environment is "unsustainable."

“

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.

From a Nigerian perspective, this crisis highlights critical issues within the energy and aviation sectors. The reliance on imported fuel, even with domestic refining capacity, and the opaque pricing mechanisms are major concerns. While international news might focus on global fuel market fluctuations, the Nigerian context involves specific domestic challenges. The sustainability of the local aviation industry, which is vital for connectivity and economic activity, is at stake. The government's intervention and a clear explanation for these price discrepancies are urgently needed to prevent a collapse of domestic air travel.

“

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.