Airlines in Nigeria spent $192bn in 2022 on aviation fuel alone, a report by Philips Consulting Limited, disclosed.
Titled, ‘Nigeria’s Aviation Industry Customer Satisfactory Survey Report 2022’, the report said that in the first six months of 2022, the jet fuel price rose to 70 per cent.
The report noted that the figure indicated one of the steepest jump in jet fuel since 2022.
It also said that the increased jet fuel price now represented a significant challenge for the airlines in the first six months of 2022.
“Fuel is the industry’s largest cost item with $192bn in 2022. The ongoing war in Ukraine, which keeps prices for Brent Oil high, continues exacerbating the situation. The increased jet fuel price now represents a significant challenge for airlines in the first six months of 2022. Jet fuel price rose more than 70percent indicating one of the steepest jumps in jet fuel price since 2022. The rise in jet fuel is driven by the soaring crude oil price following Russia invasion of Ukraine in February 2022 when the Brent crude oil price rose by 11percent.”
The report said that Airbus was facing challenges in improving its production rate of A320 family to 65 per cent in mid-2023.
It added that Boeing had a massive overhang of already built parts in inventory.
“Particularly with the 787, there remains a lack of certainly around production. However, the supply chain bottlenecks cascade throughout the aerospace industry hitting companies such single-engine light aircraft manufacturers such as Cirrus-Aircraft.”
In the report, PCL lamented high marker exit by both domestic and foreign operators.
“It’s traceable to mismanagement of fund, poor safety compliance, limited infrastructure and stifling regulatory policies.”