Ibom Air, Airpeace, others in dire strait as Jet A1 crisis heaps more pressure

Agency Report

Nigeria’s aviation industry is once again under intense pressure as the global surge in aviation fuel prices continues to ripple across domestic operations, threatening airline profitability, passenger traffic, and overall sector stability.

Domestic operators had recently had some spats with Jet A1—commonly referred to as aviation fuel suppliers before President Bola Tinubu intervened with a 30 percent debt relief.

However, with Jet A1 accounting for the largest chunk of airline operating costs, the recent spike has triggered a chain reaction with leading domestic carrier Ibom Air on Monday sounding alarm of imminent chaos.

Giving an update on the fuel situation, which has risen sharply, driven by geopolitical tensions, supply chain disruptions, and rising crude oil costs, the airline affirmed that the fuel price situation is an unprecedented crisis for Nigeria’s domestic airlines.

It disclosed that “At Ibom Air, the cost of fueling our aircraft has more than tripled between January and today. From an average of N2.1m per flight in January, as at today, the 26th of April, we are paying approximately N7.6m to fuel every flight.

“This is a more than 350% increase since the beginning of March, a space of just 7 weeks! And our aircraft are some of the most fuel efficient in the domestic market.

At this point, domestic airlines are baffled at why the price of aviation fuel in Nigeria has ballooned to this level, way above the rest of the world, while the fuel marketers obtain 95% or more of their aviation fuel from Dangote Refinery.”

According to the airline management: “The situation is exacerbated by the fact that the combination of competitive pressures and patriotism have prevented a commensurate increase in our fares, meaning that we and our fellow domestic airlines have had to absorb the immense operating losses resulting from this situation.”

“We chose to do this believing that the crisis would pass in a week or two, but it has persisted now for nearly two months, continuously increasing, with no reprieve in sight as at today. While we continue to do everything we can to maintain normal operations, it is clear to us that the current conditions are unsustainable.”

“We note that, worldwide, where fuel price increases are nowhere near what we are facing in Nigeria, airlines are reducing flights to manage the situation. We, too, will have to take whatever ameliorating actions we can in the days ahead, including reducing our capacity, if necessary, to be able to continue to provide services to our customers and our country.”

“We also note that, if this situation persists much longer, airlines will not be able to continue operating just to pay for fuel and nothing else.

We call on the fuel marketers to seriously reconsider the pricing of aviation fuel to make the airline business model continue to work in Nigeria.” The management told aviation correspondents via an electronic document.

Industry data indicates that Jet A1 prices in Nigeria have climbed to about ₦3,300 per litre, one of the highest in Africa.

This is significantly above global averages and has placed domestic carriers at a competitive disadvantage.

While international airlines may have hedging mechanisms and stronger financial buffers, Nigerian operators face a harsher reality—limited access to foreign exchange, high operational costs, and a fragile market environment.

Airlines are increasingly compelled to pass these costs on to passengers, resulting in higher airfares across major routes such as Lagos–Abuja, Lagos–Port Harcourt, and Abuja–Kano.