Airline operators in Nigeria have warned that the price of aviation fuel, known as Jet A1, has surged by over 300%, making it extremely difficult for carriers to remain profitable. This sharp increase has led to flight disruptions, reduced schedules, and warnings that the industry is on the brink of collapse.
One-Way Ticket Prices Could Exceed N500,000
According to industry insiders, the current cost of Jet A1 should logically push one-way ticket fares to between N400,000 and N500,000. However, airlines acknowledge that passing the full cost to passengers is impractical given the economic situation in Nigeria. Despite the fuel price hike, ticket prices on popular routes like Lagos–Abuja remain between N130,000 and N162,000, far below what operators consider sustainable.
Operators Warn of Unsustainable Costs
The Airline Operators of Nigeria (AON) had earlier threatened to suspend operations as fuel prices rose from about N900 per litre to nearly N3,000. While the fuel supply issue is global, Nigerian airlines say the steep increase is pushing the industry to the edge. Fuel now accounts for over 40% of operating expenses, making it the single largest cost component.
An anonymous airline executive explained that a realistic fare should exceed N500,000 per trip if airlines were to fully reflect current fuel costs. He stated that even business class tickets, which sell for about N200,000 to N250,000, are insufficient to cover expenses.
Ibom Air Highlights Sharp Cost Increase
Ibom Air revealed that the cost of fueling a single flight has jumped from N2.1 million in January to about N7.6 million as of April 26, an increase of more than 350% in just seven weeks. For a Lagos–Abuja ticket priced at N124,100, even with an 80% passenger load, the flight would barely break even after other operational charges.
The airline’s Group Manager for Marketing and Communication, Aniekan Essienette, stressed that this surge occurred despite operating one of the most fuel-efficient fleets in Nigeria. Ibom Air warned it may be forced to cut capacity to stay afloat and urged fuel marketers to review pricing to prevent the industry from becoming unsustainable.
