Airlines are facing mounting pressure as the cost of aviation fuel, known as Jet A1, has surged dramatically—raising concerns that ticket prices could soon increase.
The sharp rise, driven largely by tensions in the Middle East disrupting crude oil supply, has significantly inflated operating expenses for domestic carriers. Industry checks reveal that fuel costs have become the primary driver of airline expenses in recent weeks.
Previously priced between ₦900 and ₦995 per litre, Jet A1 now sells for about ₦2,500 to ₦2,700 depending on location, placing a heavy financial burden on operators.
Airlines say they are closely watching the situation, but warn that fare hikes may be unavoidable. If fuel prices continue climbing, ticket costs could even double.
Fuel already accounts for roughly 30–35% of airline operating costs, a figure that is climbing rapidly. Since late February, when conflict broke out in Iran, prices have fluctuated repeatedly, making planning and pricing increasingly difficult.
Despite fuel prices exceeding ₦2,000 per litre, some airlines have maintained fares around ₦195,000. However, industry stakeholders question how long this can last, warning that further increases—especially toward ₦3,000 per litre—could force some airlines out of operation and reduce flight availability.
Meanwhile, regulators have been urged to engage with airlines over pricing concerns, especially amid allegations of fare manipulation, which operators deny.
Rising global crude oil prices—now around $112 per barrel—are also compounding the issue, pushing up aviation fuel costs and, ultimately, fares.
Experts say the shift is significant: fuel now makes up as much as 45% of airline operating costs, overtaking maintenance as the biggest expense. As a result, passengers should expect airfares to rise by 20–25% in the near term.
