Home | Goldstreet Business
Friday, May 27, 2022
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
Gold Business Logo
No Result
View All Result
Home Aviation

Domestic Airlines under strain as Jet Fuel Prices Ascend

May 12, 2022
in Aviation, Business, Top Stories
0
Domestic Airlines under strain as Jet Fuel Prices Ascend
Share on FacebookShare on Twitter

The economic recovery of domestic airline operators after the easing of restrictions on movement is being slowed by a surge in the prices of jet fuel.

Jet A-1, one of the most commonly used fuels for commercial aviation) which was trading at an average $0.6 per litre
on the local market in January this year had shot up to an average of $1.14 per litre by the third quarter of the year.

RELATED POSTS

MTN to raise indigenous equity stake to 30%

How rising inflation is forcing interest rates ever higher

Analysts have blamed the skyrocketing prices on the impact of the Russia-Ukraine war on the global oil market, inflation, and the depreciation of the cedi against the US Dollar.

In order to sustain their operations, domestic airline operators have introduced a fuel surcharge ranging from GHS 22 to GHS 25 (depending on the fuel consumption rate of the aircraft used by the operator) per ticket.

However, passengers who do a round trip are required to pay a fuel surcharge ranging from GHS 44 and GHS 50 per ticket – and the amount is part of the total price build-up of the airfare.

The GNA has gathered that the amount is deducted and given to the jet fuel suppliers to help reduce the burden on the airline operators, whose expenditure on fuel had doubled since the beginning of the year.

The operators indicate that apart from the fuel surcharge introduced in March this year, they have not adjusted their original airfares since the beginning of the year for fear that patronage of their services could plummet if they did so.

In an interview with the GNA, Mr Duncan Sambu, the Chief Operating Officer, PassionAir, said the company now spends twice the amount of money it spent on fuel in the beginning of the year.

He said the situation had disrupted the growth plan of the company, adding that it was compelled to suspend its operations in Ho recently because of the skyrocketing prices of jet fuel.

“Our fare is in cedis. Most of our costs as an airline are in dollars. Even paying the Civil Aviation Authority charges in dollars and we pay based on the current forex rate,” he said.

“…We had to pass some of the cost to the passengers. We had to come up with a fuel surcharge which transfers part of the cost to the passengers which directly goes to the fuel companies,” he added.

Mr Sambu said local airline operators were under serious economic strain and that they would be compelled to adjust their airfares “if it gets to a level we cannot take.”

“We are monitoring the situation and we have a limit we can take. But the income of the passengers has not increased so we are also trying to look at how it is going to affect our passengers and we are also looking at the limit which we can sustain this,” he said.

He appealed to the Government to introduce a subsidy scheme in the short term to cushion the operators until prices of aviation fuel stabilised.

Dr Issaka Yakubu Akparibu, an aviation expert, told the GNA that the rising cost of jet fuel could result in a sharp rise in airfares if the situation on the global market persisted.

He urged the Government to pay critical attention to the plight of the local operators by reducing the taxes on petroleum products.

“Airlines should explore other measures to reduce cost of operations. Sometimes the airlines are compelled to reduce their staff strength but that also means that jobs would be lost,” he said.

Jet fuel prices have shot up in the last weeks following a disruption of the global oil supply chain occasioned by Russia’s invasion of Ukraine.

In New York for instance, the cost of the fuel rose about fourfold to just over $7.50 a gallon before dipping back to $5.30 last month.

The situation has not only led to a rise in airfares but also has implications on the cost of global shipping.

Last month, Amazon announced plans to impose its first “fuel and inflation surcharge” for sellers whose goods it stores and delivers.

Domestic airline operators in Nigeria on Monday, May 9, 2022 aborted their planned suspension of all domestic flights over what they described as “a fourfold increase” in jet fuel prices.

The operators said the price of jet fuel had jumped from 190 to 700 Nigerian naira per litre
(from $0.45 to almost $1.70).

facebookShare on Facebook
TwitterTweet
Source: GNA
Tags: Domestic AirlineJet Fuel
ShareTweetShare

Related Posts

MTN Ghana gets approval to buy back shares

MTN to raise indigenous equity stake to 30%

May 25, 2022
Rise in inflation threatens rate of economic rebound

How rising inflation is forcing interest rates ever higher

May 25, 2022
Inflation likely to stick around for years – World Economic Forum

Inflation likely to stick around for years – World Economic Forum

May 25, 2022
No monkeypox detected in Western Region – Ghana Health Service

No monkeypox detected in Western Region – Ghana Health Service

May 25, 2022
Gold Fields on track with ESG Initiatives

Gold Fields on track with ESG Initiatives

May 25, 2022
Next Post
Economy is heading in right direction; we won’t seek IMF relief – Finance Minister

Economy is heading in right direction; we won’t seek IMF relief – Finance Minister

Interest rates surge further; cost of credit to go up

Interest rates surge further; cost of credit to go up

Discussion about this post

Archives

<
May 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
▼
>
MonTueWedThuFriSatSun
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
 123456
78910111213
14151617181920
21222324252627
28      
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
1234567
891011121314
15161718192021
22232425262728
       
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
     12
3456789
10111213141516
17181920212223
242526272829 
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
    123
45678910
11121314151617
18192021222324
25262728   
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       

RECOMMENDED

MTN Ghana gets approval to buy back shares

MTN to raise indigenous equity stake to 30%

May 25, 2022
Rise in inflation threatens rate of economic rebound

How rising inflation is forcing interest rates ever higher

May 25, 2022

MOST VIEWED

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Energy
  • Health
  • Auto
  • International
  • Subscription Form
  • Staff Webmail
  • About Us
  • Contact Us
Call us: +233 24 432 0902 | info@goldstreetbusiness.com

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2
  • World
  • Business
  • Technology
  • Health

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.