Air Peace Limited has revealed that for every one-hour flight the airline operates, it spends N7 million on fuel.
It added that N7 million is spent to purchase 4,000 litres of aviation fuel and about $4,000 for the Aircraft, Crew, Maintenance, and Insurance (ACMI) leasing obligations.
The airline’s Chief Operating Officer (COO), Mrs Oluwatoyin Olajide, disclosed this at a news conference on Friday in Lagos, as reported by the New Agency of Nigeria (NAN).
Mrs Olajide noted that Air Peace spends over N14 million for operating a one-hour flight, of which the cost of aviation fuel accounts for 60-65%.
Her words,“There are factors that define operating cost and they include aviation fuel which takes between 60 per cent to 65 per cent of the operating cost.
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“One litre of fuel is N1,400. If I have to operate a one-hour flight from here to Abuja, Port Harcourt, and Owerri, I am going to be using about 4,000 litres of fuel.
“So, on average, a one-hour flight costs N7 million on fuel alone. Also, ACMI costs $4,000 for leasing planes, considering the challenges we are currently facing,” Olajide said.
She further disclosed that the significant interest rate of about 30% for borrowing money from institutions within the country and the fact that Nigerian airlines pay four times more than others for spare parts further exacerbate the cost of airline operations in Nigeria.
Air Peace’s COO noted that due to the significant cost of operations airlines face in Nigeria, a one-hour trip within Nigeria should cost not less than N500,000.
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