Nigerian airlines say jet fuel now 40% of costs, threatening flights
Nigerian domestic airlines say aviation fuel (Jet A1) now gulps up to 40% of operating costs, well above the global average of 30%, according to Airline Operators of Nigeria spokesperson Obiora Okonkwo on Channels Television’s Politics Today. He warned the level is increasingly unsustainable, noting that factoring fuel into ticketing math suggests a one‑hour flight could cost ₦500,000 or more.
The cost squeeze leaves carriers with tough choices: absorb losses, raise fares, or reduce flights. Many are already operating below breakeven on domestic routes, especially in the current low‑demand season, pushing some to the edge of financial viability. Airlines say they have so far avoided passing the full cost to passengers due to weak purchasing power, but structural issues—spot‑market buying, inconsistent depot pricing, logistics delays, and lack of fuel hedging—keep expenses volatile.
While the Dangote Petroleum Refinery’s aviation fuel output, launched in 2024, is expected to stabilize supply, operators say its effect on pricing consistency is still unfolding. Will you brace for possible fare hikes or fewer flight options as airlines navigate this fuel cost crunch?