Given the recent spike in aviation fuel prices above N1300, airlines have indicated that they might have to review their fares upward.
Obiora Okonkwo, the spokesman for local airlines, revealed this in a statement on Friday and demanded prompt government intervention to stop local airlines from collapsing.
Okonkwo, who also chairs United Nigeria Airlines, explained that the unexpected increase in fuel prices from N700 per litre and the rise in the exchange rate to 1,400/$ had caused major losses for airlines.
“We are experiencing losses due to uncontrollable circumstances. We are not only faced with the problem of scarcity of dollars; even the aviation ecosystem is feeling the heat. Handling companies have increased the cost of their services; airports have increased their charges; and those that service the aircraft have also increased the cost of their services. The monies for these payments are coming from the passengers, who are already exhausted financially,” he said.
According to him, this has made it difficult for the airlines to keep up sufficient load factors to sustain their operations during the current low season because fewer people are travelling for leisure and social events.
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“Passenger traffic has decreased because even individuals attending social events like weddings, funerals, and other ceremonies might not want to pay for airline tickets; instead, they would prefer to give credit alerts to those organising the events.
“Our desire to stay in this industry is waning. We have reached the oxygen supply point. A few airlines are going into a coma. The quality of our equipment is declining,” he lamented.