Unless the Federal Government intervenes in the current high price of Jet A1, also known as aviation fuel, Nigeria's aviation industry faces worsening financial strain, experts have warned.
Impact of High Fuel Costs on Airlines
An aviation expert, Mohammed Badamasi, in an interview with The Guardian yesterday, said domestic airlines are already grappling with severe operational challenges as the soaring price of aviation fuel continues to consume a major portion of their expenses. Badamasi acknowledged the recent reduction in fuel prices announced by Dangote Refinery but maintained that the relief is still inadequate to significantly ease the burden on operators.
He urged airlines to intensify engagement with the Federal Government and fuel investors to secure additional reductions capable of stabilising ticket prices and sustaining passenger traffic. According to him, persistent high airfares could force more Nigerians to opt for other modes of transportation, especially road travel.
Badamasi noted that some airlines have deliberately resisted steep fare increases to retain customers and remain competitive, warning that continuous hikes in ticket prices could reduce passenger volumes and compound the financial difficulties facing the industry. He expressed optimism that the situation may improve once tensions in the Middle East ease and global crude oil prices begin to stabilise.
Airports Also Under Pressure
The Managing Director of Chinua Achebe International Cargo Airport in Anambra State, Martins Nwafor, described the impact of the ongoing US-Iran conflict on global aviation as unprecedented. Nwafor said airports are also facing huge operational pressure due to rising diesel and energy costs required to power critical airport infrastructure and services.
According to him, the increase in ticket prices has created a ripple effect across the aviation value chain, leading to declining passenger traffic and reduced revenues for airports and other aviation service providers. While commending Dangote Refinery for reducing fuel prices, he argued that the cuts are marginal to significantly lower airline operating costs, stressing that aviation fuel currently accounts for nearly 70 per cent of airlines' total expenses.
Calls for More Intervention
Nwafor also questioned the Federal Government's recent 30 per cent debt relief granted to domestic airlines, arguing that the liabilities were statutory funds owed to regulatory and safety agencies and should ordinarily not have accumulated unpaid. He further called for more practical intervention measures to support operators and preserve safety standards across the industry.
