Ibom Air to cut capacity over soaring jet fuel

• Carrier spends N7.6 million on fuel per flight from N2.1million

Citing soaring jet fuel prices in Nigeria, Ibom Air on Monday said it may be forced to reduce flight capacity to continue providing services to its customers.

 The airline’s statement, signed by Aniekan Essienette, Group Manager, Marketing and Communication, said the fuel price situation is an unprecedented crisis for Nigeria’s domestic airlines, adding that at Ibom Air, the cost of fueling its aircraft has more than tripled between January and today.

“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 since the beginning of March, a space of just 7 weeks! And our aircraft are some of the most fuel-efficient in the domestic market.

 “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 situation is exacerbated by the fact that a combination of competitive pressures and patriotism has prevented a commensurate increase in our fares, meaning we and our fellow domestic airlines have had to absorb the immense operating losses this has caused.

 “We chose to do this believing that the crisis would pass in a week or two, but it has persisted now for nearly two months, continuously increasing, with no reprieve in sight as of today. While we continue to do everything we can to maintain normal operations, it is clear to us that the current conditions are unsustainable, “it said.

 The airline, however, noted that worldwide fuel price increases are nowhere near those in Nigeria, adding that airlines are reducing flights to manage the situation.

 “We, too, 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 to our customers and our country. We also note that, if this situation persists much longer, airlines will not be able to continue operating just to pay for fuel and nothing else”, it added.

 The airline also called on fuel marketers to seriously reconsider aviation fuel pricing to ensure the airline’s business model continues to work in Nigeria.

Wole Shadare