Domestic airlines in Nigeria are facing mounting financial pressure due to a sharp increase in the price of Jet-A1 aviation fuel, the Airline Operators of Nigeria (AON) has said.....KINDLY READ THE FULL STORY HERE▶

According to the group, aviation fuel, which sold for around N1,000 per litre just two weeks ago, has surged to about N1,800 per litre in several parts of the country—an increase of roughly 80 percent in a short period. Fuel accounts for the largest share of airline operating costs, representing 30–35% of total expenses. The spike has been linked to ongoing conflicts in the Middle East, which have pushed global energy prices higher.

Speaking on Channels Television on Friday, AON spokesperson Prof. Obiora Okonkwo said the rise has placed airlines under severe financial strain. Despite this, most carriers have avoided immediately passing the added costs onto passengers.

“Two weeks ago, Jet-A1 cost about N1,000 per litre. Today, it’s around N1,800, and even higher in some locations—a jump of about 80 percent. That’s a huge spike,” Okonkwo said.

He added that airlines are currently absorbing the losses to shield travelers from higher ticket prices. “We are selling tickets at very non-profitable rates and losing a lot of money. Adjustments may be necessary if prices continue to rise,” he noted, while emphasizing sensitivity to the economic conditions of Nigerians.

Okonkwo also highlighted that global oil market developments, including recent releases from crude oil reserves, could impact fuel prices in the coming weeks. He urged the Federal Government to engage with the Dangote Refinery to stabilize local aviation fuel supply. “Two years ago, we had no refinery in Nigeria. Now, with a refinery, we are hopeful a solution can be found,” he said.

He warned that if prices continue rising, some airlines may struggle to absorb the increasing costs.

On the recent sanctions by the Federal Competition and Consumer Protection Commission against about five airlines for alleged price-fixing, Okonkwo dismissed the claim. “The aviation sector is deregulated. There is no meeting of airlines to agree on fares. Fixing prices would require operating as a cartel, which is not happening,” he explained.

Okonkwo stressed that ticket prices vary based on each airline’s operational costs and that carriers must continually demonstrate financial viability to regulators to maintain their licenses. He urged policymakers to consider the fragile state of the aviation industry when making regulatory decisions.