According to a report by Philips Consulting Limited, the aviation industry in Nigeria has so far spent $192 billion on aviation fuel in 2022.
TechEconomy obtained a study titled “Nigeria’s Aviation Industry Customer Satisfactory Survey Report 2022” that stated that in the first half of 2022, the price of jet fuel increased by 70 percent.
According to the study, the statistics showed the biggest increase in jet fuel since 2022.
Additionally, it stated that the higher cost of jet fuel was a big issue for airlines during the first half 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 prices rose more than 70 percent, indicating one of the steepest jumps in jet fuel prices since 2022. The rise in jet fuel is driven by the soaring crude oil price following Russia’s invasion of Ukraine in February 2022, when the Brent crude oil price rose by 11 percent.”
The report said that Airbus was facing challenges in improving its production rate of the A320 family to 65 percent 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 certainty around production. However, supply chain bottlenecks cascade throughout the aerospace industry, hitting companies such as 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 funds, poor safety compliance, limited infrastructure, and stifling regulatory policies.”
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