Aviation fuel price hike puts Nigerian airlines under pressure
Domestic airlines in Nigeria are struggling financially as the price of Jet-A1, or aviation fuel, has surged dramatically. The Airline Operators of Nigeria, represented by Prof Obiora Okonkwo, revealed that fuel prices have nearly doubled in a short period, severely impacting airline operations. Despite these challenges, most airlines have not yet passed the extra costs onto passengers. Industry stakeholders are calling for government intervention to help stabilize the situation.
What we know
- The price of aviation fuel has jumped from about N1,000 to N1,800 per litre in many parts of the country, an increase of roughly 80 per cent.
- Prof Obiora Okonkwo, spokesperson for the Airline Operators of Nigeria, said airlines are absorbing losses to avoid increasing ticket prices for travellers.
- The spike in fuel prices is linked to the ongoing conflict in the Middle East, which has affected global energy prices.
- Okonkwo urged the Federal Government to engage with the Dangote Refinery to help stabilize local aviation fuel supply.
- The Federal Competition and Consumer Protection Commission has sanctioned about five airlines over alleged price fixing, but Okonkwo denied coordinated price setting among airlines.
