Airlines Face Cost Pressure as Jet Fuel Prices Spike 100%

There are indications that airfares may jump in the coming weeks following the hike in the cost of aviation fuel, commonly referred to as Jet A1, a development that is already putting pressure on airline operations and signalling higher ticket costs for passengers.

The spike in JetA1 price is largely due to the crisis in the Middle East, which has slowed the production and movement of crude oil across countries, worsening the operational cost of domestic carriers.

Checks by our correspondent with airlines showed an astronomical increase in the operating cost of airlines, particularly caused by the spike in aviation fuel, which has become the dominant cost driver in recent weeks.

At the time of filing this report, aviation fuel, which was sold between N900 and N995 before the Middle East crisis commenced, has jumped to between N2,500 and N2,700, depending on the airport of delivery, sharply raising the cost burden for operators.

Operators said they were monitoring developments, stressing that an increase in airfares was imminent, with strong indications that the prices of air tickets might double if the current trend persists.

Aviation fuel remains the single highest component of airline operations, accounting for about 30 to 35 per cent of total operational costs, a figure that industry players say is rising rapidly under current market conditions.

Airline sources said the price of the product had remained unstable since February 28, 2026, when the war started in Iran, changing about five times since that time, further complicating planning and pricing decisions.

The spokesperson for United Nigeria Airlines, Chibuike Uloka, challenged the Federal Competition and Consumer Protection Commission to urgently engage domestic airline operators over the sustainability of current ticket pricing amid rising operational costs.

The FCCPC recently accused airlines of price fixing, with special attention on five unnamed airlines. This was, however, dismissed by the airline operators.

Uloka noted that despite aviation fuel prices soaring beyond N2,000 per litre, many carriers had continued to maintain fares at around N195,000, raising concerns about how long such pricing could be sustained under prevailing economic conditions.

He, however, warned that the situation could deteriorate further if fuel prices get to N3,000 per litre, stressing that not all airlines would be able to remain in operation under such pressure, a development that could further shrink capacity and push fares even higher.

He said, “Honestly, this is a very good time for FCCPC to come out and ask operators how they have been able to sustain flight tickets at N195,000 despite the increase in aviation fuel crossing N2000 and above. They should please ask how operators have kept on with operations? These are hard times. But most definitely, the current prices can’t be sustained for long periods.

“If this continues the way it is, because the way we are now, the price is also getting to N3000 per litre, and if it eventually gets to N3000, not all operators will be able to fly. And the ones that will be able to fly will not be Father Christmas. What we are asking now is not even profit, but at least to be able to operate optimally. Aviation has become a daily necessity because people must be able to move from one place to another. But FCCPC must be able to come out now and ask operators how we are faring.”

Pecohub understands that Nigeria has been unable to produce enough crude oil for the Dangote Petroleum Refinery, forcing the indigenous refining company to import crude.