By ETIM ETM
Akwa Ibom State-owned airline, Ibom Air, has just posted an impressive financial performance for the 2024 financial year, reinforcing its track record as the nation’s most preferred carrier and a well-run government business. Gross revenue was N96 billion, up by 43% from N67 billion in 2023, while PBT recorded N16.6 billion, a huge climb from a N3 billion loss in 2023. Net profit (PAT) in 2024 was N6.8 billion in 2024, against an N8.7 net loss in 2023. The loss in 2023 was mainly due to the sharp depreciation of the Naira that year. The financials was announced at Ibom Air’s fifth AGM held last week at the Sheraton Hotel, Ikot Ekpene – another state government-owned business. Although it’s not a publicly quoted company, the airline chose to make its financial performance public to showcase its strong corporate governance and motivate other state-owned businesses.
I commend the airline for this spectacular performance which clearly shows that a government-owned business could be profitable if the right things are done. Ibom Air is the first and so far the only airline to be owned and operated by any state government in Nigeria, and in Africa, for that matter. Nigeria Airways, which was owned by the federal government, ceased operations in 2003 after operating for 45 years. It was mired in corruption and inefficient and unethical business practices. All attempts by the federal government to re-establish a national carrier through different business models have been unsuccessful. By establishing an airline and turning it into a profitable venture in just five years, Akwa Ibom State government has therefore performed a feat uncommon in the continent. Motivated by the success of Ibom Air, other states like Lagos, Ebonyi and Delta have recently spoken of plans to float their own airlines. But so far, the ideas have not taken off. It’s easier said than done.
I was very skeptical when Akwa Ibom State government first announced the idea of the airline in 2019. As we all know, the business is tough to run. Many an airline in Nigeria has collapsed in the last 30 years. I therefore thought that the plan was wrong headed. But the government was smart to come up with a smart model. It partnered with a group of aviation professional, with the government taking up more than 98% stake in the business and offering a guarantee to the initial bank loan with which the first set of aircraft was acquired; while the professionals, led by Captain Mfon Udom, a retired pilot, was to manage the business in the most profitable manner. Equally notable is government’s commitment to provide the most conducive environment and facilities for the growth of the business. The airline now finances the operations of the airport, while the government, the lone shareholder, provides the infrastructure and facilities.
But very importantly, the government has kept to its pledge not to interfere in the management of the business. ‘’I have never sent anybody to Ibom Air to employ and I have never called the airline to delay a flight for me’’, said then-governor Udom Emmanuel, in whose administration the airline was established, on the secret behind its success. This is one condition that many a governor will find it hard to keep. But Gov. Umo Eno has continued in the same pattern of not only insulating the airline from political interferences, but also supporting it as its only shareholder. Its fleet has grown to nine, seven CRJ Bombardier jets and two Airbus jets, while passenger volume is growing in leaps and bounds.
In terms of service performance, Ibom Air delivered a consolidated 79 percent Schedule Reliability and 83 per cent On-Time Performance for the first quarter of 2025 – the best performance in the industry. The recent public spat between Senator Adams Oshiomhole and Airpeace airline underscores the poor service quality in the industry. But Ibom Air is committed to a superior service offering. In a recent communication with staff, Chief Operating Officer, George Uriesi (recently promoted CEO in a major management reorganization) says the airline is aiming to reach a 90 per cent On-Time departure performance, noting that its load capacity has also been growing steadily even during the lull season.
The airline is the preferred carrier for business travelers on the busy Abuja-Lagos route to which it has deployed its brand new Airbus planes. I am a regular Ibom Air flyer, and, having been a customer-facing professional in another service industry for many years, I am always amazed at the high quality of customer service and professionalism that I experience at every service point at the airline.
At the AGM last week, the airline announced some board changes. Founding Board Chairman, Imoabasi Jacob retired, and was replaced by pioneer CEO Captain Mfon Udom, who has vacated the chief executive chair. Udom was replaced by Uriesi, the pioneer CEO. As is traditional in modern business management, I expect that the airline will soon appoint a Deputy CEO as part of the business continuity plan. I commend all these men and all the staffs at the airline for their hard work, professionalism and dedication in the last six years.
ETIM ETIM is a veteran journalist and PR professional with over 35 years of cognate experience.
He is the publisher and editor-in-chief of Policy & Politics (www.policyandpolitics.com.ng), an online newspaper dedicated to insightful analysis of Nigerian news and world’s report. He is also a columnist with BusinessDay and The Cable and is a regular contributor to other newspapers.
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