Domestic airline operators in Nigeria have expressed concern over the high increase in the price of aviation fuel, saying that the development is placing severe financial pressure on the industry and could soon lead to higher ticket fares for passengers.
The Airline Operators of Nigeria (AON) disclosed that the price of Jet-A1, the fuel used by aircraft, has surged from about ₦1,000 per litre to nearly ₦1,800 per litre within two weeks, representing an increase of roughly 80 per cent.
Speaking on Channels Television, the spokesperson for the airline operators, Obiora Okonkwo, said the sudden rise in aviation fuel costs has left domestic carriers struggling to stay afloat.
According to him, aviation fuel accounts for between 30 and 35 per cent of airline operating expenses, making it the single most expensive component of airline operations.
“Two weeks ago we were buying Jet-A1 at about ₦1,000 per litre. Today it is about ₦1,800, and even higher in some locations. That is about an 80 per cent spike, which is extremely difficult for airlines to absorb,” Okonkwo said.
He explained that many airlines have chosen not to immediately pass the increased cost to passengers, despite the heavy financial losses they are currently facing.
“At the moment, we are absorbing the shock and bleeding financially. Airlines are selling tickets at prices that are not profitable because we understand the difficult economic situation Nigerians are going through,” he added.
Okonkwo attributed the surge in fuel prices partly to the ongoing tensions and conflict in the Middle East, which has triggered an increase in global oil prices and disrupted energy supply chains.
He warned that if the situation continues for a prolonged period, airlines may have no choice but to review their ticket prices upward to remain in business.
“We hope the situation will not last long. But if it persists, adjustments in ticket prices may become inevitable,” he said.
The airline operators also expressed optimism that increased domestic refining capacity in Nigeria could help stabilise aviation fuel prices.
Okonkwo noted that the emergence of the Dangote Refinery offers hope that local production of aviation fuel could eventually reduce dependence on imports and stabilise supply.
“In the past, the country had no refinery producing aviation fuel, which made the situation worse. Now there is hope that local refining will help address the challenge,” he explained.
He further cautioned that prolonged high fuel prices could threaten the survival of some domestic airlines, noting that the aviation sector remains highly vulnerable to economic shocks.
Meanwhile, Okonkwo dismissed allegations by the Federal Competition and Consumer Protection Commission (FCCPC) that some airlines were involved in price-fixing.
He insisted that airline ticket pricing in Nigeria operates under a deregulated system, where each operator determines fares based on its operational costs.
“There is no meeting where airlines gather to fix ticket prices. Each airline has different aircraft, costs and operational structures, so pricing is determined individually,” he said.
Industry stakeholders are now urging regulators and the Federal Government to consider urgent interventions to prevent further strain on the aviation sector and protect both operators and passengers from the impact of rising fuel costs.
