Date: March 14, 2026 l By: Dalena Reporters
Nigeria’s aviation industry is facing a growing financial crisis as the price of aviation fuel, commonly known as Jet-A1, has surged dramatically to about ₦1,800 per litre, triggering alarm among domestic airline operators and raising fears of higher ticket prices for passengers.
The Airline Operators of Nigeria (AON) have warned that the sharp increase in fuel costs is placing severe financial pressure on airlines already struggling with operational challenges. Industry leaders say the sudden spike has significantly increased the cost of running domestic flights and could threaten the survival of some carriers if the situation continues.
According to aviation stakeholders, the price of Jet-A1 fuel was around ₦1,000 per litre just two weeks ago, meaning the latest increase represents roughly an 80 percent surge within a short period. Fuel is widely regarded as the single largest cost component in airline operations, accounting for about 30 to 35 percent of total operational expenses, making such increases particularly devastating for airline companies.
Speaking on the crisis, Obiora Okonkwo, spokesperson for the Airline Operators of Nigeria, said domestic carriers are currently absorbing the losses to avoid immediately transferring the burden to passengers. However, he admitted the situation is unsustainable.
“We are bleeding. We are taking the blow and selling tickets at very non-profitable prices,” Okonkwo said, noting that airlines are already losing significant amounts of money under the current fuel market conditions.
Industry analysts link the sudden rise in aviation fuel prices partly to global energy market disruptions, including tensions and conflicts in the Middle East, which have pushed up international fuel costs and disrupted supply chains.
Experts warn that if fuel prices remain at the current level, Nigerian airlines may soon have no option but to increase ticket fares in order to remain operational. Even with fare adjustments, some smaller airlines could still face serious financial difficulties.
Beyond the fuel crisis, airline operators also complain about high interest rates, heavy taxation, and foreign exchange pressures, as most aircraft maintenance and leasing costs are paid in foreign currencies while ticket revenue is earned in the Nigerian naira.
To stabilize the sector, aviation leaders are calling on the Nigerian government to intervene by supporting local refining of aviation fuel, possibly through partnerships with domestic refineries. Such measures, they say, could help reduce dependency on imported fuel and stabilize prices for the struggling aviation sector.
For now, airlines say they are hoping the spike in aviation fuel prices will ease in the coming weeks. If it does not, industry observers warn that Nigerian travelers may soon face significantly higher airfares and reduced flight services across the country.