Akwa Ibom State-owned airline, Ibom Air, has 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. The performance shows that gross revenue was N96 billion, up by 43 per cent from N67 billion in 2023, while profit before tax (PBT) recorded N16.6 billion, a great recovery a from a N3 billion loss in 2023. Profit after tax(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 were announced at Ibom Air’s fifth annual general meeting (AGM) held in Ikot Ekpene, Akwa-Ibom. 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.
At the AGM, the airline announced some board changes. Founding Board Chairman, Imoabasi Jacob retired, and was replaced by pioneer Chief Executive Officer (CEO), Captain Mfon Udom, who has vacated the chief executive chair. Udom was replaced by George Uriesi. As is traditional in modern business management, it is expected that the airline will soon appoint a deputy CEO as part of the business continuity plan.
According to analysts, this spectacular financial performance 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.
When Akwa Ibom State government first mooted the idea of the airline in 2019, many were skeptical that it would fly. Aviation business is tough to run. Many an airline in Nigeria has collapsed in the last 30 years. 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 per cent Schedule Reliability and 83 per cent On-Time Performance for the first quarter of 2025 – the best performance 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 reorganisation) said 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.
