N2,230/litre: Nigerian Airlines Under Pressure as Fuel Debts Trigger Delays, Flight Cancellations
- Some airlines are facing flight disruptions after accumulating debts to aviation fuel marketers, leaving passengers stranded at airports
- Jet A1 is reportedly selling for about N2,130 per litre in Lagos and Abuja, while prices elsewhere range from N2,180 to N2,230 per litre
- Airlines say rising fuel and foreign exchange-linked costs are squeezing their finances, prompting calls for government intervention
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Recent flight disruptions that left passengers stranded, particularly in Abuja, have been linked to unpaid debts owed by some airlines to aviation fuel marketers.
Passengers booked on Air Peace flights last Friday were among those affected after the airline delayed boarding for several hours and cancelled some flights at the Nnamdi Azikiwe International Airport, Abuja.
Source: UGC
Lagos, Maiduguri and Asaba-bound passengers were reportedly caught up in the disruption. While passengers travelling to Lagos eventually departed that night, those heading to Asaba and Maiduguri spent the night at the airport, triggering protests within the terminal.
Airlines struggle with rising Jet A1 costs
Sources in the aviation fuel market said Jet A1 was available but noted that some airlines had been unable to obtain fresh supplies because of outstanding debts.
One marketer said some carriers owed millions of naira and could not expect uninterrupted fuel supplies without settling their existing obligations.
An airline source also disclosed that Jet A1 was selling for about N2,130 per litre in Lagos and Abuja, while prices at airports outside the two major aviation hubs ranged between N2,180 and N2,230 per litre, depending on location.
The source said the issue was not necessarily fuel scarcity but the increasing cost of aviation fuel, which has significantly raised airlines' operating expenses.
The source said:
“Airlines may have faced disruptions because a number of them were not supplied the product because they have refused to clear outstanding. They are owing in the millions.
“The truth is some are owing, and they won’t expect continuous delivery while they are yet to pay what they are owing.”
Dollar costs put local airlines under pressure
According to the airline source, indigenous carriers face additional pressure because most of their income is earned in naira, while many of their major expenses are either dollar-denominated or influenced by foreign exchange rates.
Rising fuel and other operating costs have reportedly made it increasingly difficult for some local airlines to remain financially stable.
Source: UGC
The source said some operators have been forced to seek funds from other parts of their businesses to meet fuel obligations, warning the situation could worsen if costs keep rising.
He urged the Federal Government to intervene in the aviation sector to ease the financial burden on domestic airlines and prevent more operators from collapsing.
Source: Legit.ng
