Airlines record N150bn losses in two months as debt crisis deepens

Airline operators in Nigeria have raised fresh concerns over mounting financial losses, revealing that the sector has recorded over N150bn in losses within the last two months amid a deepening dispute with ground handling companies over unpaid debts.

 

A member of the Board of Trustees of the Airline Operators of Nigeria (AON), Roland Iyayi, disclosed this while warning that many carriers are nearing collapse due to rising operational pressures and dwindling revenues.

 

“Airlines have bled over N150bn in two months. Where is the money going to come from? It’s gotten to a point where nobody can threaten anybody any longer,” Iyayi said.

 

He cautioned that the survival of ground handling companies is closely tied to that of airlines, stressing that any disruption in airline operations would have far-reaching consequences across the aviation value chain.

 

“If airlines don’t exist, they don’t have a business. Nobody cares about the airlines; everybody wants to collect money,” he added.

 

The warning comes as ground handling firms, under the Aviation Ground Handlers Association of Nigeria (AGHAN), intensify pressure on airlines over about N9bn in outstanding debts, threatening to withdraw services critical to flight operations.

 

Chairman of AGHAN, Olaniyi Adigun, confirmed that the association is considering its next line of action in line with labour laws, following the issuance of a seven-day ultimatum to the airlines.

 

“What we intend to do is to come out with a press conference… we are going to state our next move. Although some of them have started paying, the majority have not. But that does not call off the strike,” Adigun said.

 

He added that the association could escalate its actions if the airlines fail to meet their obligations within the stipulated timeframe.

 

“After the expiration of seven days, if we don’t hear from them, we have our own strategy… we are just following the law,” he stated.

 

Industry stakeholders have warned that a breakdown in relations between airlines and ground handlers could trigger widespread disruption of flight operations nationwide.

 

A senior industry source, who spoke anonymously, urged both parties to prioritise dialogue, noting that the timing of the crisis could worsen Nigeria’s already fragile economic situation.

 

“As a nation, we cannot afford for our airlines to go down now because it’s going to create a lot of problems… dialogue is the only way forward,” the source said.

 

The standoff follows earlier warnings by ground handlers that continued non-payment of debts by domestic airlines has placed severe strain on their operations, raising fears of imminent service withdrawal and possible nationwide flight disruptions.