Emmanuel OchayiIn the face of mounting challenges, Nigeria’s airline operators are signaling potential fare increases as aviation fuel prices surge above N1300 per litre.
Obiora Okonkwo, spokesperson for local airlines, stated on Friday urging immediate government intervention to avert a crisis in the aviation sector.
“The volatility in foreign exchange rates and the soaring cost of aviation fuel at N1,300 per litre have disrupted operational planning and stability within the aviation sector,” Okonkwo emphasized.
The Central Bank of Nigeria’s move to unify forex markets in June 2023 has led to a significant depreciation of the naira, exacerbating the situation. The currency now stands weakened, with exchange rates exceeding 1,500/$ in the parallel market.
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Okonkwo, also chairing United Nigeria Airlines, pointed out the drastic impact on airlines due to unforeseen fuel price hikes and exchange rate fluctuations. He stressed that these factors have resulted in substantial losses for carriers, affecting their ability to maintain fleets and perform essential checks.
“We are making losses on factors that are beyond our control,” Okonkwo stated, highlighting the burden placed on airlines and passengers alike. “Passenger traffic has shrunk because even those on social engagements like weddings, burials, and other ceremonies may not be inclined to spend money on flight tickets.”
Industry analysts echoed concerns about the broader economic implications of rising fuel costs and potential fare increases. The impact on consumer purchasing power could lead to reduced passenger traffic, affecting airlines’ revenue streams and, consequently, the country’s GDP.
Olumide Ohunayo, another industry expert, emphasized the significant role of aviation in airlines’ operational costs, warning that fuel price surges inevitably translate into higher ticket prices. This could dampen demand for air travel, with individuals opting for cargo services instead.
As airlines grapple with these challenges, urgent government engagement and strategic interventions are needed to safeguard the stability and sustainability of Nigeria’s aviation sector.
