Nigerian Airlines suspend operations over high fuel prices
Moscow [Russia], May 7: Nigerian air carriers will terminate their operations starting May 9 until further notice due to surging costs of aviation fuel, sources reported, citing a joint statement of the airlines.
According to the quoted statement by Vanguard newspaper, "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.”
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The statement added that despite the government's efforts, aviation fuel prices keep soaring, undermining "the sustainability of operations and financial viability of the airlines."
"Overtime, aviation fuel price (JetA1) has risen from N190 [naira, $0.41] per litre to N700 [naira, $1.69] 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%," the statement further read.
Airline passengers in Nigeria pay for fares in naira, which has weakened sharply due to devaluations. Fuel suppliers however are paid in dollars, a scarce currency in Africa's top economy.
