Ibom Air Raises Alarm Over N7.6m Per Flight Fuel Cost

Nigeria’s domestic aviation sector is facing deepening crisis as airlines struggle with a sharp rise in the cost of aviation fuel, also known as Jet A1.
One of the operators, Ibom Air, has warned that the situation is becoming increasingly unsustainable, raising fears of possible disruptions and capacity cuts across the industry.

The airline disclosed that the cost of fueling a single flight has surged from an average of N2.1m in January to about N7.6m as of April 26.
This represents an increase of more than 350 per cent within just seven weeks.
The disclosure was contained in a statement issued by the airline’s Group Manager, Marketing and Communication, Aniekan Essienette.
Describing the development as alarming, the airline said the spike in fuel cost has placed enormous pressure on operators.
“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,” the statement read.
“From an average of N2.1m per flight in January, as at today, the 26th of April, we are paying approximately N7.6m to fuel every flight. This is a more than 350% increase… in just seven weeks. And our aircraft are some of the most fuel efficient in the domestic market.”

The airline noted that despite the rising costs, operators have been unable to fully pass the burden to passengers due to competitive pressures and a sense of national responsibility.
“A combination of competitive pressures and patriotism have prevented a commensurate increase in our fares, meaning that we… have had to absorb the immense operating losses resulting from this situation,” it said.
It added that operators initially expected the crisis to ease within weeks, but it has persisted for nearly two months with no relief in sight.

The development comes amid widespread disruptions to domestic flight schedules, with passengers already experiencing delays and cancellations.
Industry sources indicated that several airlines may be forced to scale down operations or even suspend services if the situation persists.
“We 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,” the airline stated.
It warned that continued escalation could threaten the survival of airlines.
“If this situation persists much longer, airlines will not be able to continue operating just to pay for fuel and nothing else.”

Ibom Air expressed concern over the high cost of aviation fuel in Nigeria compared to global benchmarks, especially as most of the product is sourced locally.
“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% or more of their aviation fuel from Dangote Refinery,” the statement added.

The airline urged fuel marketers to review pricing in order to sustain airline operations in the country.
“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,” it said.