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How Nigerian Airlines, Others Will Lose Over N290 Billion – IATA Reveals

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According to the International Air Association (IATA), Nigerian airlines and others in Africa will lose $700 million, approximately N290.675 in 2022 as a result of the -Ukraine conflict and COVID-19.

How Nigerian Airlines, Others To Lose Over N290 Billion - IATA Reveals

How Nigerian Airlines, Others WIll Lose Over N290 Billion – IATA Reveals

Inflation, interest rates, and exchange rates, according to IATA, will have an impact on the global aviation industry’s growth, and countries should learn from the COVID-19 epidemic.

The IATA cited a number of threats to the aviation industry, including the Ukraine conflict and COVID 19.

It said that the impact of Russia’s invasion of Ukraine on aviation was insignificant in comparison to the humanitarian disaster that was developing.

It stated that while the conflict in Ukraine would not spread beyond its boundaries, increased fuel and a drop in demand owing to low consumer sentiment would be detrimental to the aviation industry.

According to the report, the Russian international market, Ukraine, Belarus, and Moldova accounted for 2.3% of global traffic in 2021, with about 7% of international passenger traffic passing through Russian airspace (2021 data), which is now closed to many operators, primarily on long-haul routes between Asia and Europe or North America.

It disclosed that just under 1per cent of global freight traffic originated in or was transited through and Ukraine, but the greater impact was in the specialised area of heavy-weight cargo where Russia and Ukraine were the market leaders.

It said at $192 billion, fuel was aviation industry’s largest cost item in 2022 (24 per cent of overall costs, up from 19per cent in 2021).

“This is based on an expected average price for Brent crude of $101.2/barrel and $125.5 for jet kerosene. Airlines are expected to consume 321 liters of fuel in 2022 compared with the 359 billion liters consumed in 2019.”

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