Nigerian airlines struggle as jet fuel prices soar
Airlines in Nigeria are facing mounting financial pressure due to a sharp increase in aviation fuel prices, but ticket prices have remained largely unchanged. Olumide Ohunayo and Muhammad Badamosi highlighted the unsustainable situation for operators, noting that even fare hikes may not cover rising costs. Despite the spike in fuel prices, competition among local carriers is keeping airfares steady. Industry experts are calling for government intervention to help airlines cope with these challenges.
TLDR
- Aviation fuel prices surged by 184% between January and March 30, reaching up to N2,557 per litre at some airports.
- Airfares on major domestic routes remain between N106,286 and N147,000 despite higher operational costs.
- New airlines, Enugu Air and Binani Airlines, recently secured Air Operators’ Certificates.
- Olumide Ohunayo warns that fare increases may not be enough to offset losses, urging government support such as temporary tax relief.
- Muhammad Badamosi notes airlines are hesitant to raise fares further due to fears of losing passengers to alternative transport.
