Airline Operators Disclose Condition That Could Lead To Slash In Price Of Domestic Flights

There are indicators that domestic aircraft carriers may lower passenger ticket rates following the impending delivery of aviation fuel or Jet A1 fuel by Dangote Refinery.

Naija News reports that over the years, domestic airlines were compelled to maintain operations by increasing ticket rates due to the consistent rise in jet fuel prices.

However, a report from Vanguard has stated that operators are now looking forward to a potential Jet A1 price collapse, which might result in cheaper travel tickets.

While the cost of Jet A1 has remained the same, Aero Contractors Managing Director Captain Ado Sanusi said that airlines would welcome a price cut.

Sanusi said: “As operators, we have no idea of the refinery where marketers buy Jet A1, but what we look at is the price. If the price drops, whether it is from Dangote Refinery or refineries outside the country, we will appreciate it.

“The price has been steady and that is what we use in making our projections. The cost of jet fuel has been between an average price of N1,200 and N1,400 per litre.”

Speaking on the possibility of a price decline due to the impending supply, Sanusi explained that it all depends on the price at which the Dangote Refinery sells Jet A1.

He asserted that ticket prices will be lower if Dangote sells for less than the market rate.

Additionally, he stated that this depends on the type of crude oil Dangote purchases and the price of refining it.

“What we think will bring down the price of Jet A1 is the freight cost. If Port Harcourt, Warri and Dangote refineries could give us enough jet A1 for some time and we have steady prices, it will definitely have an impact on price. However, that won’t be possible in a few days. It has to be consistent for a few weeks and even months.”

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