Jet A1 Surge Drives Up Airline Operating Costs
Nigeria’s domestic airlines are facing mounting pressure from the ongoing Jet A1 Surge, with Ibom Air Chief Executive Officer, George Uriesi, revealing a sharp rise in fuel costs on its CRJ operations. The development underscores growing concerns about airline sustainability. Meanwhile, operators continue to navigate intense fare competition despite rising costs.
At the same time, airline operators have been engaging the Minister of Aviation and Aerospace Development, Festus Keyamo, and the Major Energies Marketers Association of Nigeria, over persistent fuel pricing concerns. The Federal Government is now weighing relief measures, including debt waivers and possible reductions in taxes and levies on domestic tickets.
Returning to operational realities, Uriesi disclosed that the average fuel cost per CRJ flight rose from ₦2.35 million in January 2026 to ₦7.55 million by mid-April. This represents a 221.28 percent increase within three and a half months. Therefore, the Jet A1 Surge is rapidly altering the cost base of airline operations in Nigeria.
In February, fuel costs increased slightly to ₦2.47 million, reflecting a 5.11 percent rise from January. However, the trend escalated sharply in March, when costs surged to ₦4.92 million. This marked a steep 99.19 percent increase, signalling a critical phase of the Jet A1 Surge.
The upward movement continued into April, with costs climbing further to ₦7.55 million by mid-month. This represents an additional 53.46 percent increase over March figures. In addition, the sustained rise highlights the speed and intensity of fuel price escalation across the sector.
Uriesi stressed that these increases have occurred without corresponding fare adjustments. However, airlines continue to face downward pricing pressure due to competition. As a result, operators are struggling to cover core operational costs, particularly fuel.
He said:
“It is important that the people in the industry understand exactly what the airlines are going through, because it appears as if it’s a lot of talk. It is not! I’ll share Ibom Air’s numbers on the CRJ as an example…”
“This is the CRJ. One of the most fuel-efficient aircraft in the domestic market. And these changes have taken place without fare increases, with the pressure on fares continuing to be downwards due to competition. So, airlines are basically struggling just to pay for fuel.”
Reflecting on wider industry conditions, Uriesi pointed to visible operational strain across fleets. He suggested that the current environment is forcing difficult decisions for operators managing different aircraft types.
He added:
“I arrived Abuja yesterday and saw two A320s belonging to one of our fellow domestic carriers on the ground. Having operated A320s on wet lease before, I know those aircraft to be fuel guzzlers. I thought to myself, ‘I wonder how these guys are managing, knowing my numbers. So, in a space of just 2 months, the lease conditions must have changed dramatically for these guys’. Resilience is the Nigerian domestic airline.”
Against this backdrop, the earlier engagements between airlines, government, and fuel marketers are beginning to take clearer shape. Following discussions with operators and Major Energies Marketers Association of Nigeria, President Bola Ahmed Tinubu is considering targeted interventions to cushion the impact of the Jet A1 Surge.
These include possible waivers on debts owed to aviation agencies such as the Federal Airports Authority of Nigeria and the Nigerian Civil Aviation Authority. Meanwhile, broader reforms aimed at reducing multiple taxes and levies on domestic tickets are also under review.
Speaking on the outcome, Keyamo said:
“Mr. President mandated us to quickly bring a request to him. The first request that he will consider and grant is a generous discount on the debts the airlines are owing the aviation agencies, NAMA, FAAN, NCAA, and so on and so forth.”
“The percentage of discounts and all that Mr. President will decide, he is so concerned about what is happening. He asked me in particular to express his deep appreciation to the airline operators. He knows the conditions under which we operate.”
He added:
“The second request Mr. President has asked that we should bring for him to consider fully, and grant is that he wants to set up a committee to address the issue of levies, taxes, and fees on domestic tickets once and for all. This request has been on for a long time. So, Mr. President will put the team together, and he’ll give them a deadline to report to him as quickly as possible on the government fees and charges and levies that we can remove from domestic tickets for now to give respite to Nigerians who are also buying their tickets.”
“And of course, he’ll consider a date for the airline operators to meet him one-on-one for the other more robust discussions regarding access to capital and all of that.”
Responding on behalf of operators, Air Peace Chairman, Allen Onyema, urged stronger intervention.
He said:
“In Nigeria, we acquire at 30 to 35 per cent. This is killing. That’s why airlines owe FAAN, owe NCAA, owe everybody, because we are the sacrificial lambs. It’s not a lucrative business. So, we ask Mr. President to please fund the Bank of Industry.”
“That is the only bank that is still doing single-digit or at least 10 per cent interest to airlines. But they don’t have funds now. Mr. President should please help us to fund the Bank of Industry very well because that is another way of helping us in the long run and permanently.”
The Jet A1 Surge continues to test the resilience of Nigerian airlines. Consequently, both market pressures and policy responses will shape the industry’s near-term outlook.
