Jet fuel spike pushes airlines to brink, operators threaten shutdown

Nigeria’s domestic aviation sector is facing a looming crisis as airline operators warn they may suspend flight operations across the country from April 20, 2026, over the soaring cost of aviation fuel.

The Airlines Operators of Nigeria (AON) said the sharp and sustained increase in the price of Jet A1 has placed unbearable pressure on carriers, threatening their survival and the stability of the industry.

In a letter dated April 14, the AON President, Abdulmunaf Sarina, disclosed that the cost of aviation fuel has surged dramatically from about N900 per litre in late February to approximately N3,300 per litre within weeks.

The correspondence, addressed to Clement Isong of the Major Energies Marketers Association of Nigeria (MEMAN), was also copied to key government officials, including President Bola Tinubu, Vice President Kashim Shettima, and Minister of Aviation Festus Keyamo.

According to the association, fuel expenses now account for over 40 per cent of airline operating costs, and the current pricing regime has made it increasingly difficult for operators to remain viable.

The AON noted that airlines have continued to operate under severe financial strain in recent weeks, absorbing losses in an effort to avoid disrupting air travel. However, it warned that the situation has become unsustainable.

Industry sources indicated that at least one airline has already suspended operations since March due to the rising cost of fuel, a development the association described as a sign of deeper challenges confronting the sector.

Operators also argued that passing the increased costs to passengers through higher ticket fares is not a practical solution, as it could significantly reduce demand and worsen revenue losses.

The AON accused fuel marketers of exploiting geopolitical tensions in the Middle East to impose excessive price increases that are not aligned with global trends.

While acknowledging that crude oil prices have risen internationally, the association maintained that the scale of the increase in Jet A1 prices in Nigeria far exceeds global benchmarks and reflects distortions in the domestic market.

It warned that continued escalation could lead to a shutdown of airline operations, with severe consequences for the broader economy.

“The industry is under existential threat,” the group stated, adding that a collapse of airline operations would affect employment, banking exposure to the sector, and national connectivity.

The association stressed that the aviation sector plays a critical role in economic activity, linking major cities, facilitating commerce, and supporting national security logistics.

AON urged MEMAN and relevant authorities to urgently intervene by ensuring that fuel prices are adjusted to reflect international realities and prevent further damage to the industry.

The warning follows an earlier protest by the association at the end of March, when it raised alarm over a rapid increase in fuel prices and called for immediate corrective action.

Despite those appeals, operators say the situation has worsened, leaving them with limited options.