Nigerian Airlines Struggle Amid 180% Fuel Price Surge

Airlines in Nigeria are currently facing a significant challenge as the price of Jet A1 aviation fuel has surged by 184% over the past two months, rising from N900 per liter in January to N2,557 per liter by February 26, 2026. Despite this dramatic increase in fuel costs, airfares have remained stagnant, with prices ranging from N106,286 to N147,000 across major domestic routes.

Sources indicate that competitive pressures among local carriers have prevented fare increases, even as airlines grapple with financial burdens. The Nigeria Civil Aviation Authority oversees operations, and the industry has seen a steady decline in passenger traffic, with only 15.6 million movements expected in 2024, down from 16.2 million in 2022.

Aviation analyst Olumide Ohunayo has warned that even if airlines adjust fares, it may not sufficiently offset the losses incurred due to rising fuel prices, creating an unsustainable operational environment.