Airlines Increases Fares Over High Cost of Jet Fuel

By Jane Muia / Published June 29, 2022 | 10:43 am

KEY POINTS

Jambojet has increased its fares by eight percent to tame losses due to fuel costs, which has disrupted the airline’s operation cost. However, ticket prices are expected to be reviewed downwards in the coming days depending on the fuel cost.

KEY TAKEAWAYS

The global rise in jet fuel prices is a threat to the aviation industry, given that most of them have not fully recovered from the effects of the covid 19 pandemic despite the lifting of restrictive measures imposed by the majority of countries across the globe.

The cost of jet fuel increased 48 percent in the last five months to a high of 148 shillings per litre from 100 shillings in January. This has added pressure on the airlines, which will be passed to consumers through high ticket prices.

Passengers flying from Nairobi to Eldoret will pay 6,000 to 9,000 shillings per trip on Jambojet, depending on the time that one is flying, as opposed to the standard charges where one would spend between 4,800 shillings and 5,800 shillings between Monday and Thursday.

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Those travelling to Mombasa will have to pay a high of 8,000 shillings per trip. The midday flights on this route will go for 6,000 shillings.

Those heading to Kisumu from Nairobi will pay 6,000 shillings on Jambojet and up to 6,800 shillings on Safarilink.

The global rise in jet fuel prices is a threat to the aviation industry, given that most of them have not fully recovered from the effects of the covid 19 pandemic despite the lifting of restrictive measures imposed by the majority of countries across the globe.

In 2021, African airlines lost 860 billion shillings in net revenue on the back of the covid pandemic. For instance, National Carrier Keya Airways (KQ) sunk further into losses with a net loss of 15.8 billion shillings for the financial year ended December 2021.

This was, however, a loss reduction by 56 percent from a loss of 36.2 billion shillings recorded in 2020 when covid restrictions hit its operations, forcing the carrier to ground its planes for months.