Nigerian airlines have halted plans to ground all domestic flights owing to rising jet fuel prices just hours before the action was set to take effect, according to the airline operators association.
Since it was announced on Friday, the Airline Operators of Nigeria has been under pressure from the government, consumer protection organisations, and customers to postpone the planned shutdown. continue reading
Airlines are complaining about paying for jet fuel in cash at 700 naira ($1.69) per litre, a price that has more than doubled this year, partly as a result of Russia’s invasion of Ukraine, resulting in a 95 percent increase in their operating costs.
Dollar shortages and a weaker local currency have exacerbated the sector’s problems, which are compounded by country-wide issues such as double-digit inflation, poor growth, rising unemployment, and insecurity.
Local airlines have encountered unfavourable global oil market dynamics, according to the aviation ministry, but their efforts have found ‘permanent solution to the puzzling issue of aviation fuel availability and cost.’
Some airlines suspended local flights indefinitely in 2016 due to fuel shortages and huge debts. Though the government has stepped in with financial aid to help the industry.
Nigeria subsidises imported gasoline to keep costs at the pump low. However, as global oil prices have risen, the country has had to bear higher costs in order to avoid strikes, particularly in the run-up to presidential elections next year.
Nigeria’s largest airline, Air Peace, which has flights to Dubai and Johannesburg, warned on Sunday that the suspension would go through unless the association altered its mind.
Due to agreements to lenders and suppliers, Ibom Air dropped out of the flying suspension on Saturday. Dana Air was the next to arrive.
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