Business

Airlines May Post $39bn Loss In Q2 – IATA

Published

5 years ago

April 2, 2020

The International Air Transport Association says airlines may burn through $61bn of their cash reserves during the second quarter ending 30 June, 2020 while posting a quarterly net loss of $39bn.
The association said on Tuesday that the new analysis was based on the impact assessment it released last week, under a scenario in which severe travel restrictions last for three months.
According to IATA, in this scenario, full-year demand falls by 38 per cent and full-year passenger revenues drop by $252bn compared to 2019 while the fall in demand will be the deepest in the second quarter, with a 71 per cent drop.
IATA said the impact would be severe as revenues were expected to fall by 68 per cent.
“This is less than the expected 71 per cent fall in demand due to the continuation of cargo operations, albeit at reduced levels of activity. Variable costs are expected to drop sharply—by some 70 per cent in the second quarter—largely in line with the reduction of an expected 65 per cent cut in second quarter capacity. The price of jet fuel has also fallen sharply, although we estimate that fuel hedging will limit the benefit to a 31 per cent decline,” the association said.
“Fixed and semi-fixed costs amount to nearly a half an airline’s cost. We expect semi-fixed costs (including crew costs) to be reduced by a third. Airlines are cutting what they can, while trying to preserve their workforce and businesses for the future recovery. These changes to revenues and costs result in an estimated net loss of $39bn in the second quarter,” it added.
The association explained that on top of unavoidable costs, airlines were faced with refunding sold but unused tickets as a result of massive cancellations resulting from government-imposed restrictions on travel.
It noted that the second quarter liability for these would be a colossal $35bn.
“Cash burn will be severe. We estimate airlines could be burning through $61bn of their cash balances in the second quarter,” the association said.
The Director General, IATA, Alexander de Juniac, said airlines could not cut costs fast enough to stay ahead of the impact of the crisis.
“We are looking at a devastating net loss of $39bn in the second quarter. The impact of that on cash burn will be amplified by a $35bn liability for potential ticket refunds. Without relief, the industry’s cash position could deteriorate by $61bn in the second quarter,” he said.
According to him, several governments are responding positively to the industry’s need for relief measures, adding that among countries providing specific financial or regulatory aid packages to the industry are Colombia, the United States, Singapore, Australia, China, New Zealand and Norway.
He said Brazil, Canada, Colombia and the Netherlands had also recently relaxed regulations to allow airlines to offer passengers travel vouchers in place of refunds.

Business

British Council Splash N2.4m On YSEC Winners

Published

1 day ago

September 8, 2025

The Tide

The British Council has dolled out the sum of B2.4 million to the eighth winners of the Youth Sustainable Enterprises Challenge (YSEC) programme in Rivers State.

The programme was organized by Entrepreneural Development Initiatives Programm (ENDIP) in collaboration with the British Council in Port Harcourt.

The Tide learnt that each of the eight winners will share the sum of #300,000.

Speaking with newsmen, The Director Programmes, British Council, Mr. Chikodi Onyemerele, said the Council in conjunction with the King Council has been making efforts to develop the enterpreneural skills of young Nigerians.

He said the programme was to create opportunity for the participants to develop skills that will be useful to them.

The Director of Programme, who described Nigeria as a vast county with limited resources, also stressed the need for corporate organizations and governments to invest in skills development of young people in the country.

He said by doing this, insecurity and other social vices will be checked in the country, and urged the beneficiaries to make the best use of the opportunities to improve themselves and the society.

Onyemerel, who was the Guest of Honour at the occasion, said the Council has organized similar programmes in Enugu, Abuja, Lagos, Owerri and other parts of the country.

He said the participants will be assisted through mentoring and other support programms to enable them nurture their skills.

In her welcome address, the Executive Director of ENDIP, Mrs. Lilian Ari, said the organization has in the past 25 years stayed true to its vision of developing 10,000 enterprises capable of generating 30,000 jobs in the country by 2030.

“Our mission has been simple but powerful, to give young people the tools, training mentorship, finance and network they need to turn ideas into thriving businesses.

“From vocational skills to business incubation, from micro credit to venture equity we have walked this journey with thousands of young people and today we celebrate the next generation of change makers”, she said.

Mrs. Ari said time has come for the leadership of the Niger Delta to invest in youth development with the view to empowering young people.

“To the Niger Delta Development Commission and the South-South Development Commission, invest in these young people.

“To our state and Local Governments, make youth enterprise a budget priority”, she urged.

She also stressed the need for multinational corporations operating in the region, including oil companies, Banks and others to develop the enterpreneural skills of the youth.

Speaking with newsmen, the Chairman, Joint Association of Persons With Disabilities, Enugu State Chapter, Onyebuchi Mba, said majority of members of the Association in Enugu State have benefited from the programme, adding that it was reason why he was in Port Harcourt to show solidarity with them.

He said ENDIP and the British Council have established a sustainable development ideology that should be appreciated by all concerned.

Also speaking some of the participants and winners expressed excitement over the programme and pledged to make judicious use of the money.

By; John Bibor

Business

NERC Plans Excess Solar Power Addition To National Greed

Published

1 day ago

September 8, 2025

The Tide

The Nigerian Electricity Regulatory Commission (NERC) has said plans are ongoing to implement a net metering arrangement that will enable the export of excess power from solar, back into the national grid for commercial value.

The commission revealed that the value of solar panels imported into Nigeria in the first quarter of 2025 was N125.3bn, saying this reflects the increasing adoption of renewable energy.

NERC in a release obtained on Friday, said Nigeria’s solar energy capacity has experienced significant growth in recent years, with imported panels valued at $200m.

“In 2023, solar panel imports were valued at over $200m, translating to more than four million panels, with a substantial portion allocated to captive power generation. By the first quarter of 2025, the value of imported solar panels had reached approximately N125.29bn.

“This expansion reflects the increasing adoption of renewable energy, particularly in rural and off-grid areas, driven by government initiatives and private sector investments”, the commission said.

According to the NERC release, Nigeria added 63.5 megawatts of solar capacity in 2024, bringing the total installed capacity to 385.7 MW, further accelerating the shift towards decentralised energy solutions.

With this, NERC said some stakeholders approached it with requests to enable the export of excess power to the grid for commercial use.

The commission said it has developed draft regulations on net billing.

“Given this expansion, stakeholders have approached the commission with requests to explore the possibility of implementing a net metering arrangement, enabling the export of excess power back into the grid for commercial value.

“In compliance with its business rules and pursuant to Sections 46 and 48 of the Electricity Act 2023, which govern the commission’s proceedings, consultations, and public hearings, the commission has developed draft regulations on net billing.

“The commission is inviting the general public to provide comments on the draft net billing regulations, which can be accessed on its website, and submissions can be made until September 26, 2025″, it stated.

By: Corlins Walter

Business

NCDMB, Partners Chevron, Intels On NC-HCD Training Programme

Published

1 day ago

September 8, 2025

The Tide

The Nigerian Content Development and Monitoring Board (NCDMB) has said it is partnering Chevron Nigeria Ltd and Intels Nigeria Ltd on Human Capacity Development (NC-HCD) training programme to build manpower for the nation’s maritime sector.

Towards this end, the Board in a statement by its Directorate of Corporate Communications, Friday, said 39 young graduates have underwent preliminary processes for cadetship training on its Human Capacity Development (NC-HCD) programme in Port Harcourt, the Rivers State capital.

The NC-HCD initiative, according to the Board, was patterned after its 60:20:20 Strategic Training Model and provides for sea time experience and Certificate of Competence (CoC) training, practical exposure, and real-time experience across multiple technical domains within the facilities of the of Lagos-based Stoilic Shipping Ltd, a leading member of the International Maritime Professionals Association (IMPA).

The Tide learnt that the NC-HCD training programme was conceived in fulfilment of a policy thrust of the NCDMB to grow indigenous capacity and participation in linkage sectors of the Nigerian economy and enhance employment and government revenues under the 60:20:20 model which envisages job placement for 60 per cent of trainees after successful completion of the 18-month training.

Speaking at the kick-off ceremony of the programme, the Executive Secretary of the Board, Engr. Felix Omatsola Ogbe, described human capital development (HCD) as “a non-negotiable pillar of the oil and gas industry’s development road map”, emphasising that stakeholders could build a sector not just fueled by hydrocarbons but powered by indigenous talent.

“When we embed HCD into the core of our strategic planning, local content ceases to be an aspiration, it becomes our reality.

“This event being the commencement of an 18-month Cadetship Training Programme to be handled by Lagos-based Stoilic Group is more than a routine milestone, but a declaration of our collective commitment to nurturing world-class Nigerian professionals who will shape the future of Nigeria’s oil and gas industry, particularly, the maritime sector.

“The NCDMB has remained steadfast in its conviction that HCD is a critical investment in the sustainability, competitiveness, and domiciliation of in-country value addition activities of the country’s oil and gas value chain”, he said.

The NCDMB’S Scribe, represented by the General Manager, Human Capacity Development, Barr. Esueme Dan Kikile, said the 39 cadets would gain sea time experience and Certificate of Competence (CoC) training, practical exposure and real-time experience across various technical domains.

He commended Chevron Nigeria Ltd. for its unwavering partnership, noting that the international oil company (IOC) has not only consistently complied with Nigerian Content requirements, but also shown leadership in embracing the spirit of national capacity building.

He also acknowledged the critical role of the Oil and Gas Trainers Association of Nigeria (OGTAN) as a major body for human capacity development in the industry.

According to him, the association has been instrumental in aligning training content, delivery standards, and capacity development frameworks with the actual needs of the industry.

“OGTAN has helped to bridge the gap between training and employability, ensuring that trainees do not just learn, but are ready to contribute meaningfully to the economic advancement of the country.

“I commend training providers and mentors, and urge them to give their best, challenge and inspire trainees, and inculcate in them values, discipline and work ethics that would make them stand out in any environment”, the NCDMB boss added.

In his own remarks, the Capacity Building Advisor of Chevron, Mr. Victor Inyere, told the cadets that they have earned their place in the HCD programme through hard work and dedication, and that the opportunity ahead is for them to acquire skills that would shape their careers and position them to contribute to national development.

He commended the NCDMB for its remarkable role in regulation and facilitation of capacity building, assuring the Board that Chevron would remain committed to advancing Nigerian Content.

In their presentation, Stoilic Nigeria Limited, represented by its General Manager, Administration, Mrs. Chimamanda Okafor, said its mission is to transform Nigeria’s maritime sector through innovative solutions, professional growth and strict adherence to safety and environmental standards.

She noted that the company’s cadets achieved 100 per cent pass rate in the Certificate of Competency assessments, and that the company would place cadets on vessels and open doors for them internationally.

“Looking ahead, Stoilic is working on a project to establish a world-recognised maritime university in Nigeria. An institution that would carry strong international partnerships and stand as a marvel in maritime education.

“The present batch of trainees have sea time cadets and CoC cadets. Sea time cadets are graduates who need practical onboard experience before moving on to the next stage of their maritime career, while CoC are those who have completed that phase of training”, She said.

By: Ariwera Ibibo-Howells, Yenagoa