United Nigeria Airlines has said rising operational costs have forced airlines to dip into their reserves and shareholders’ funds to sustain flight operations.

The Managing Director of United Nigeria Airlines, Osita Okonkwo, disclosed this during a courtesy visit by Vanguard Newspapers representatives to the airline’s office in Ikeja, Lagos, on Tuesday.

Okonkwo said the situation had persisted for the past three to four months, following the outbreak of the Middle East war, which has increased the cost of airline operations.

He said airlines had effectively been subsidising passengers because the revenue generated from flights was no longer sufficient to cover the rising cost of operations.

According to him, airlines have had to rely on their financial reserves and additional funds from shareholders to keep operating and ensure Nigerians continue to travel between destinations.

Despite the financial pressure, Okonkwo said United Nigeria Airlines remained committed to the Nigerian market and was focused on the long term.

He expressed optimism that economic conditions would improve, noting that the airline had made significant investments in Nigeria and intended to remain in the industry despite the current challenges.

The airline’s Chief Commercial Officer, Adedayo Olawuyi, also said United Nigeria Airlines was interested in strengthening its relationship with Vanguard and exploring partnerships that could create value for both organisations.