Domestic Airfares to remain elevated in the medium term – Expert
Domestic airfares are projected to remain elevated in the medium term, given the high cost of aviation fuel airlines have had to contend with, Sean Mendis, an international aviation expert has said.
For several weeks now, an Accra-Kumasi one-way ticket has crossed the GHC600 mark, with at least GHC 1,200 required to make an Accra-Kumasi-Accra round trip
On the Accra-Tamale-Accra and Accra-Takoradi-Accra routes, passengers now require close to GHC 1,400 to make a round trip from Accra to the two cities.
Sean Mendis, an international aviation consultant, says the removal of a big chunk of Russian production capacity from the market portends that this could lead to higher airfares in the medium term.
He tells AviationGhana that: “The reality is that fuel accounts for 30-40% of an airline’s operating costs, so with the 30-40% increase as well in the fuel cost, that means a 10-15% increase in the cost for an airline to transport each passenger.
“As a result, airlines have no real option in the medium to long term than to increase their prices accordingly. The issue in Africa is not just the fuel price, but the actual shortage of the physical commodity in some places even for airlines willing to pay.”
Jet fuel price average for 2022 (year to date) is $143.4/bbl, according to data published by the International Air Transport Association (IATA). On the international market, jet fuel price ended last week up 3.4% at $143.0/bbl
In Ghana, which imports all of its aviation fuel despite being an oil-producing nation in Africa, jet fuel is selling for about US$1.2 per liter.
