Airlines On The Brink Of Bankruptcy As Aviation Fuel Prices Soar

Nigerian domestic airlines are on the brink of shutting down operations if the sharp rise in aviation fuel prices is not checked immediately.

Industry leaders say the situation has become unsustainable, with some carriers already absorbing heavy losses just to keep flying. NaijaChoice News gathered that the crisis, triggered by the ongoing Middle East tensions since late February, has pushed Jet A1 prices far beyond what operators can bear.

As of Wednesday evening, aviation fuel sold for about N2,690 per litre in Lagos, N2,750 in Asaba, N2,759 in Port Harcourt and N2,990 in Kano. Indications emerged that the price could cross N3,000 per litre by today, according to multiple airport sources.

Captain Ado Sanusi, Managing Director and CEO of Aero Contractors, warned that without urgent intervention, several airlines would have no choice but to halt flights. He noted that carriers have so far refused to pass the full cost to passengers because many travellers are already struggling with high fares caused by naira devaluation and inflation.

Sanusi told NaijaChoice News that global crude oil prices have risen by about 30 per cent since the Iran-related crisis began, yet aviation fuel in Nigeria has jumped by over 50 per cent. Nigerian airlines now pay more for Jet A1 than their counterparts in the United States, he added.

The Aero chief lamented the lack of transparent pricing by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). He insisted the regulator has failed to monitor the market, even though Nigeria now has the Dangote Refinery producing the product locally.

“We cannot operate outside the aviation ecosystem,” Sanusi said. “Government should step in to ensure fair pricing within a reasonable range. With local refining, we should no longer face the old costs of importation, demurrage and logistics.”

An inside source at Air Peace, Nigeria’s largest carrier, confirmed the airline is buying fuel between N2,500 and N3,000 per litre and fears further increases in the coming days. The source described the situation as worrisome for the entire sector.

The Airline Operators of Nigeria (AON) have concluded plans to announce a review of airfares. A senior insider told NaijaChoice News that member airlines can no longer absorb the losses. “Some airlines may go under if nothing changes,” the source said.

Earlier attempts by a few wet-leased operators to raise fares met stiff resistance from passengers, forcing them to slash prices again and operate at a loss. Sanusi admitted that any fare increase now would be difficult because the current period is low season for travel.

A top executive at one of the major aviation fuel marketing companies, who spoke on condition of anonymity, explained that marketers are pricing Jet A1 at replacement cost. They fear the price will climb again before it eventually drops in the next two months as global markets stabilise.

The marketer noted that Dangote Refinery’s current offer is higher than some had expected, pushing many to exhaust old imported stocks first. He added that airlines may have no option but to add roughly N7,000 to each ticket to stay afloat. “Those who fly are not the lower class; they can absorb it,” he said.

Before the recent spike linked to the Middle East conflict, Jet A1 sold for around N900 per litre. As at March 25, 2026, a typical one-hour domestic flight ticket ranged from N195,000 to over N250,000.

NaijaChoice News understands that both operators and passengers are looking to the Federal Government and NMDPRA for quick action. Without transparent regulation and support, the fear is that Nigeria’s aviation sector could see major players exit the market, leaving travellers with fewer options and higher costs in the long run.