What’s the problem?
Fuel consumption expense is a major challenge for the airline industry. According to the International Air Transport Association, the global airline industry’s fuel bill is estimated to have totalled $188 billion in 2019 (accounting for around 23.7% of operating expenses at an average price of $65.0/barrel Brent).
For this reason, most airlines attempt to improve their operational efficiency in order to stay competitive and increase revenue.
One way to improve operational efficiency is to increase the accuracy of fuel consumption forecasting but presently, forecasting process for Airlines in emerging markets like Nigeria are conducted through Excel spreadsheets.
However, this is extremely difficult, time-consuming, and disorganized process. Furthermore, excel’s accuracy is unsatisfactory since the capabilities are inadequate in terms of statistical and mathematical modeling.
The challenge and solution
Not having enough fuel at an airport is extremely costly and may result in disrupting flights but ordering excessive fuel than what an airline needs results in high inventory and storage costs.
By using Voyance OMNI with historical monthly consumption, an airline can build a forecasting model to forecast fuel consumption.
Request for OMNI demo today at https://voyancehq.com or reach out to firstname.lastname@example.org for an onboarding call.