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Business & Economy

Domestic airline operators threaten shutdown April 20 over 300% hike in aviation fuel price

Nchetachi Chukwuajah
Last updated: July 23, 2026 10:45 pm
Nchetachi Chukwuajah
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Domestic airline operators threaten to shut down operations on April 20 over a 300 percent increase in aviation fuel price
Domestic airline operators warn of shutdown on April 20 over a 300 percent aviation fuel price hike
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By Nchetachi Chukwuajah 

The Airline Operators of Nigeria (AON) has threatened to suspend domestic operations nationwide from April 20 if the rising cost of aviation fuel is not urgently addressed.

The operators stated this in a letter signed by the President of AON, Abdulmunaf Sarina, on Wednesday, April 14, and addressed to the Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong.

According to them, the surge in the price of aviation fuel, which they said has increased by 300 percent from N900/litre as at February 28, 2026, to N3,300/litre, has become unbearable for operators.

The letter read, “Our letter dated March 30, 2026, on the above subject matter refers. Permit us to further bring to your notice that the price of Jet A1 as sold by marketers has risen significantly from the initial N900/litre as at February 28, 2026, to N3,300/litre as of today.

“This represents an increase of over 300%. This astronomical and artificial increase is not commensurate with the rise in crude oil prices and is well above international market benchmarks, which reflect approximately a 30% increase in crude oil cost.”

The airline operators said they had continued to operate for weeks out of patriotism despite the financial strain, which has become unbearable.

They stressed that revenue generated by airlines was no longer enough to cover the cost of fuel, which represents only one component of operational expenses.

“For the past four weeks, airlines have endured this burden and continued operations out of patriotism and in the spirit of service to the nation. However, the situation has now become unbearable and clearly unsustainable.

“Currently, airline revenues are insufficient to cover the cost of fuel alone, which is only one of many operational expenses incurred daily. The situation continues to deteriorate,” the letter added.

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The group accused fuel marketers of threatening the survival of the aviation sector, warning that the aviation sector and the wider economy may further suffer the implications if the situation persists.

It said, “The actions of fuel marketers are effectively decimating the aviation industry and putting the nation’s economy, safety, and security at risk, as airlines are gradually being forced to suspend operations.

“For the avoidance of doubt, this arbitrary increase has already severely impacted one airline, forcing it to ground all operations since March 13, 2026. This may become inevitable for other airlines if the situation does not change immediately.”

The operators further stressed the critical role of aviation in national development and warned that the continued rise in fuel prices could trigger severe economic consequences.

“Aviation remains a sector of strategic national importance. The continued arbitrary rise in jet fuel prices is both unhealthy and detrimental to national well-being. Airlines are now facing existential threats, with serious consequences for the broader economy,” the letter stated.

AON noted that raising ticket fares to cover fuel costs could reduce passenger demand, while shutting down operations would have broader economic consequences.

The association further appealed to the marketers to review the price of aviation fuel in line with global market realities and warned that airlines may be forced to shut down operations if the situation persists.

“If ticket prices are adjusted to reflect the current cost of aviation fuel, flights will operate with low passenger loads. Conversely, if airlines cease operations, financial institutions will be impacted, millions of livelihoods will be lost, and insecurity may increase.

“We therefore urge you to prevail on marketers to proportionately adjust jet fuel prices in line with international market realities, as airlines can no longer sustain purchases at the current exorbitant rates.

“Accordingly, we hereby give notice that if this trend persists, all airlines in Nigeria will be compelled to suspend operations effective Monday, April 20, 2026. This serves as our final appeal,” it said.

TAGGED:aviation fueldomestic airline operatorsprice hike
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