Aviation Fuel: Airlines to Cut Down Flight Operations to Servicing Profitable Routes
Chinedu Eze Nigerian airlines may cut down on their flight operations, servicing only profitable routes as the price of aviation fuel in Nigeria, known as Jet A1, has consistently remained
Nigerian airlines are considering cutting back on flight operations, focusing only on the most profitable routes due to the soaring cost of aviation fuel. Known as Jet A1, the price of aviation fuel has remained high since February, and airlines are struggling to cope with the scarcity of the product at many airports. Some airlines are leaving passengers' luggage behind to carry more fuel, while others are incurring losses and incurring debts with fuel vendors.
Airlines are relying on loans and commercial bank loans at high interest rates, further straining their finances. Despite Dangote Refinery refining and supplying Jet A1, the pricing remains unsustainable. The airlines have also pointed out the lack of pricing transparency, alleging that middle-tier marketers sell the product at significant markups compared to the primary refinery rates.
Despite the challenges, some airlines, like Aero Contractors, have maintained stable operations through a sustained buy and pay procedure with oil marketers and by operating only on viable routes.
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