Airlines operating in the Nigerian aviation industry have so far spent the sum of $192bn in this 2022 on aviation fuel alone.
A survey report obtained from the Philips Consulting Limited, titled, ‘Nigeria’s Aviation Industry Customer Satisfactory Survey Report 2022’, indicated that in the first six months of 2022, the price of aviation fuel, otherwise known as ‘JetA1’, rose by 70 per cent.
The report noted that the figure indicated one of the steepest jump in jet-A1 fuel since 2022.
It also said the increased jet fuel price now represented a significant challenge for the airlines in the first six months of 2022.
“Fuel is the industry’s largest cost item with $192bn in 2022. The ongoing war in Ukraine, which keeps prices for Brent Oil high, continues exacerbating the situation. The increased jet fuel price now represents a significant challenge for airlines in the first six months of 2022.
“Jet fuel price rose more than 70percent, indicating one of the steepest jumps in jet fuel price since 2022.
“The rise in jet fuel is driven by the soaring crude oil price following Russia invasion of Ukraine in February 2022 when the Brent crude oil price rose by 11percent”, it indicated.
The report further stated that Airbus was facing challenges in improving its production rate of A320 family to 65 per cent in mid-2023, adding that Boeing had a massive overhang of already built parts in inventory.
“Particularly with the 787, there remains a lack of certainly around production. However, the supply chain bottlenecks cascade throughout the aerospace industry, hitting companies such as single-engine light aircraft manufacturers such as Cirrus-Aircraft”, it stated.
In the report, the firm also lamented high marker exit by both domestic and foreign operators, which it said was traceable to mismanagement of fund, poor safety compliance, limited infrastructure and stifling regulatory policies.
The high cost of aviation fuel has caused airlines at the Port Harcourt International Airport to resort to rationing of flights movement and sometimes delays in flight operations.
Some of the airlines’ officials, during a chat with reporters, had hinted that they will not waste such huge sum on aviation fuel, just to carry few passengers, which will amount to running at a loss.
Source: thetidenewsonline.com