The Nigerian aviation sector is teetering on the edge of a total shutdown. The Airline Operators of Nigeria (AON) has issued a final warning to the federal government and energy marketers, stating they may ground all domestic flights by next week.
The group claims that Jet A1 (aviation fuel) prices have been “artificially inflated” by private-sector marketers, creating an “existential threat” to the industry.
This standoff highlights the severe domestic fallout from the U.S.-Israel-Iran conflict, as local price spikes far outpace the 30% rise seen in global crude benchmarks.
The Airline Operators of Nigeria, which represents mostly domestic carriers, said that the “astronomical and artificial increase of 300%” imposed by the nation’s private-sector fuel marketers was jeopardizing their operations.
This compared with a 30% rise in the price of oil since the US and Israel attacked Iran on Feb. 28 and was well above the increase in the international market rate for jet fuel in that time, it said.
“The airlines are now facing existential threats.,” it said. “If we price tickets to reflect current fuel costs, we will be flying empty planes,” the group wrote in the letter to the Major Energies Marketers Association of Nigeria.
MEMAN Chief Executive Officer Clement Isong disputed the airlines’ claim that jet fuel prices had risen to 3,300 naira per litre ($2.46) versus 900 naira before the war.
He said the spot price on April 14 was 1,832 naira and added that airlines have the option of hedging such operating risks by signing long-term contracts that ensure jet fuel supply at a pre-established price.
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