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

Ibom Air has raised fresh concerns about the worsening cost of aviation fuel in the country, revealing that it now spends about N7.6m to fuel a single flight, underscoring the deepening crisis in the country’s aviation sector.

The airline’s disclosure further emphasised the mounting financial pressure on domestic carriers, with operators warning that the surge in fuel prices is fast becoming unsustainable and could disrupt flight operations if left unchecked.

In a statement made public on Monday, Ibom Air described the situation as unprecedented, noting that its fuel costs have risen sharply within a short period.

The statement read, “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 added that the increase represents a significant increase in operational expenses over the past two months.

Ibom Air questioned the sharp rise in local fuel prices, especially given global trends, noting that a significant portion of aviation fuel is sourced domestically.

The statement further stressed, “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 airline explained that, despite rising costs, operators have been unable to fully pass the burden on to passengers due to competitive pressures.

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.

According to the airline, initial expectations that the spike would be short-lived have not materialised, as the crisis has persisted for nearly two months.

Ibom Air, however, warned that the current operating environment is no longer sustainable.

The airline said, “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 Akwa Ibom airline warned that continued escalation could threaten continued operations across the sector.

“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,” the statement added.