Nigeria: Airport authorities Lost N18.9 Billion 6 months Revenue to Covid-19
Nigeria’s Federal Airports Authority of Nigeria (FAAN) claimed it lost N18.9 billion revenue in six months due to Coronavirus lockdown, lamenting that the impact of the virus would be felt in the aviation industry till 2024, as projected by Airport Council International (ACI).
This was disclosed by the Managing Director and Chief Executive of FAAN, Captain Rabiu Yadudu who regretted that COVID-19 had the most devastating effect in the aviation industry globally. Yadudu, according to reports from allafrica.com, revealed that FAAN suffered 90 per cent revenue loss in the last six months and would suffer the impact for the next few years.
“FAAN which depends greatly on the Internally Generated Revenue (IGR) has suffered over 90 per cent revenue loss in the last six months and will suffer this reduction in revenue for the next few years up to when the global travel returns to the pre-COVID level.
“To make matters worse, the Airport Council Internal (ACI) has forecast that recovery to pre-COVID-19 (2019 level) could take up to the end of 2023 or 2024,” he said.
Yadudu further explained that even during the lock down, his agency kept the airports open and was involved in evacuation, flight arrangements across the airports, which made the Authority incur cost on maintenance and utilities despite the total decline in traffic as well as revenue.
“In spite of the drastic drop in revenue, as at date, FAAN has managed to ensure that all her local airports have commenced domestic operations having met the requirements by Presidential Task Force (PTF) on COVID-19, NCAA and other regulatory bodies and have been issued clearance to reopen,” he said.
On the announced increase on the Passenger Service Charge (PSC) from $50 to $100 for international passengers, $80 from the initial $50 for flights into West African States and N2, 000 per passenger from N1, 000 for domestic flights, Yadudu emphasised that FAAN had considered all International Civil Aviation Organisation (ICAO) recommendations before announcing the increase in charges.
He also said that while airlines in over a decade had adjusted airfares for travellers, the current charges had remained unchanged in more than 10 years and appealed to all stakeholders to cooperate with its plans.