Fuel From N2.1m In January, Airlines Now Spend N7.6m On Every Flight As Aviation Crisis Deepens

Fuel From N2.1m In January, Airlines Now Spend N7.6m On Every Flight As Aviation Crisis Deepens

Nigeria’s domestic aviation sector is facing a deepening crisis as airlines struggle to cope with an unprecedented surge in the cost of aviation fuel, also known as Jet A1, with operators warning that the situation is fast becoming unsustainable.

A recent disclosure by Ibom Air has brought the severity of the crisis into sharp focus, revealing that the cost of fueling a single flight has jumped dramatically within a short period. According to the airline, what cost an average of N2.1 million per flight in January has skyrocketed to about N7.6 million as of late April, representing more than a 350 per cent increase in just a few weeks.

The airline described the development as “unprecedented,” noting that the sharp rise in fuel prices has significantly inflated operational costs across the industry. Despite operating fuel-efficient aircraft, the carrier said the surge has placed immense financial pressure on its operations and those of other domestic airlines.

Industry-wide, the spike in Jet A1 prices has been attributed to a mix of global and local factors. Reports indicate that aviation fuel prices in Nigeria have climbed to around N3,300 per litre when logistics and distribution costs are included—nearly triple earlier levels—amid global energy disruptions and supply constraints.

Ironically, the crisis persists despite the presence of local refining capacity, with a significant portion of aviation fuel sourced domestically. Airlines have questioned why prices remain elevated in Nigeria compared to global trends, especially as much of the supply is linked to the Dangote Refinery, which is also exporting large volumes to international markets where prices are more competitive.

Operators say the situation is further complicated by their inability to fully transfer the increased costs to passengers. Competitive market pressures and concerns about affordability have forced airlines to absorb a substantial portion of the rising expenses, resulting in mounting operational losses.

The implications for the sector are already becoming evident. Airlines have warned of possible capacity reductions, route cuts, and, in extreme cases, suspension of operations if the trend continues. Globally, airlines typically respond to such fuel shocks by increasing fares or scaling back services, and Nigerian carriers appear to be heading in the same direction.

In response to the growing crisis, the Federal Government under President Bola Tinubu has intervened with measures aimed at stabilising the industry. These include approving a 30 per cent debt relief package for airlines and initiating urgent negotiations between operators, fuel marketers, and regulators to arrive at a more sustainable pricing framework.

However, industry stakeholders warn that unless there is an immediate and significant reduction in aviation fuel prices, the long-term viability of Nigeria’s domestic aviation sector could be at risk. Airlines caution that continued escalation may leave operators with no choice but to scale down operations drastically or exit the market entirely.

As the crisis persists, the rising cost of Jet A1 is not only threatening airline profitability but also posing broader risks to connectivity, economic activity, and passenger mobility across the country.