The Airline Operators of Nigeria (AON) has raised the alarm over a sharp increase in the price of aviation fuel, warning that domestic carriers are facing severe financial strain.
According to AON, the cost of Jet-A1 fuel has jumped from around N1,000 per litre two weeks ago to approximately N1,800 per litre in many locations, representing an 80 per cent surge within a very short period. Aviation fuel accounts for roughly 30 to 35 per cent of airline operational costs, making it the single largest expenditure for carriers.
Professor Obiora Okonkwo, AON spokesperson, said the price spike — linked to the ongoing conflict in the Middle East — has placed enormous pressure on airlines, most of which have chosen not to pass the additional costs onto passengers immediately.
Speaking on Channels TV, the Chairman of United Nigeria Airlines described the situation as financially painful. “Two weeks ago, we were getting Jet-A1 at about N1,000 a litre, which today is about N1,800, and even more in some stations. That’s an 80 per cent increase. We are selling tickets at very non-profitable prices. We are losing a lot of money,” he said.
He expressed hope that the recent release of reserve crude oil and engagement with Dangote refineries would stabilize the market. However, he warned that if fuel prices remain high, some airlines might no longer be able to absorb the losses.
On the Federal Competition and Consumer Protection Commission’s (FCCPC) recent sanctions against five airlines over alleged price collusion, the AON chairman dismissed concerns, saying the sector is deregulated and each airline sets its fares based on operational costs. He stressed that accusations of collusion were unfounded and urged regulators to understand the fragile nature of the aviation industry.
“We are very sensitive to the economic situation of Nigerians and our travellers. The FCCPC should understand that this sector is vulnerable, and regulatory actions should not harm operators or the industry’s reputation,” he added.
The spike in aviation fuel prices highlights the financial challenges facing Nigerian airlines as they navigate rising global fuel costs while trying to maintain affordable ticket prices for passengers.
