FAAN records N17.5bn revenue loss in 23 weeks | Dailytrust

FAAN records N17.5bn revenue loss in 23 weeks

Federal Airports Authority of Nigeria (FAAN)
Federal Airports Authority of Nigeria (FAAN)

The Federal Airports Authority of Nigeria (FAAN) said on Wednesday that its aeronautic and non-aeronautic revenues dipped by N17.5bn in 23 weeks due to the impact of the COVID-19 pandemic.

Director of Finance and Accounts of FAAN, Mrs. Nike Aboderin, spoke during a webinar organised by FAAN.

Aboderin who gave a detailed overview of the losses incurred by FAAN, disclosed that only 8.8 percent of its non-aeronautic revenue was recovered between April till date.

She also spoke on the impending increase in the passenger service charge (PSC), saying this has been on the table in the last three years and stakeholders have agreed to the proposed increase.

The PSC payable by each passenger on a ticket would be increased from $50 to $100 for international passengers; $50 to $80 for the West Coast while PSC on domestic flights would be jacked up to N2000 from N1000.

Aboderin said the authority took cognisance of the International Civil Aviation Organisation (ICAO) recommendations before announcing the new charge.

The PSC increase is projected by the International Air Transport Association (IATA) to affect ticket prices by 7.1% for flights within Africa, 3.4% for intercontinental flights and 1.5% for domestic flights.

“Furthermore there will be no funds to carry out any capital expenditure. FAAN is engaging the FGN to exempt her from this deduction,” she added.

“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.

The Managing Director of FAAN, Capt. Hamisu Yadudu said the agency lost over 90 per cent of its revenue.

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