Some operators informed Daily Trust yesterday that a one-way flight should have cost between N400,000 and N500,000 given the more than 300% increase in the price of aviation fuel, popularly known as Jet A1.
However, they said that given the status of the economy, there is a limit to how much the operators can pass on to passengers.
According to Daily Trust, the Jet A1 supply and price volatility situation has gotten worse recently, causing significant flight interruptions and forcing airlines to reduce their flying schedule.The operators operating under the auspices of Airline Operators of Nigeria (AON), which had earlier threatened to close last Monday, had stated that they now pay more than 300% more for Jet A1 than they did at N900 per litre at the beginning of the Iranian war.
Although the scarcity of aviation fuel is a worldwide issue, Nigerian airline operators are worried about the price increase, claiming the situation is putting them in danger.
Fuel already accounts for more than 40% of an airline’s operational costs, and as prices have increased, aviation fuel currently accounts for the majority of operating costs.Additionally, depending on the carrier, a one-way ticket from Lagos to Abuja still costs between N130,000 and N162,000 as of the time this post was filed.
“On a normal day, if we want to transfer the cost to passengers, which is impracticable, a one-way ticket shouldn’t cost less than N500,000,” an anonymous AON member told our correspondent.
The highest Business Class fare as of right now was between N200,000 and N250,000, according to checks on the websites of some domestic carriers.
The operator explained, “This means that you cannot break even on any flight with a litre of fuel sold at nearly N3000.”
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