Aviation
Airfares Hold Steady Despite 184% Aviation Fuel Surge—Why Airlines Refuse to Raise Prices
Airfares remain stable amid fuel crisis as Nigerian airlines resist fare hikes despite a 184% aviation fuel surge driven by global tensions
Airfares Remain Stable Amid Fuel Crisis as Nigerian airlines continue to hold domestic ticket prices steady despite a sharp 184 per cent surge in aviation fuel costs across the country’s aviation sector as of March 2026.
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Airline operators, speaking on condition of anonymity due to the sensitivity of industry pricing discussions, said intense competition among local carriers has prevented fare increases, even as operational costs rise sharply.
The development comes amid growing concerns over the sustainability of airline operations in Nigeria’s domestic market.
Aviation fuel, which sold at about N900 per litre in January 2026, rose to N1,121 by late February and now averages around N2,557 per litre.
The steep increase has placed significant financial pressure on airlines, with fuel accounting for nearly 40 per cent of operating costs.
Despite this cost surge, domestic ticket prices have largely remained unchanged, with fares on major routes still ranging between N106,286 and N147,000.
The Airfares Remain Stable Amid Fuel Crisis trend has been linked to aggressive pricing competition among Nigeria’s estimated 15 scheduled carriers.
An airline source described the market as highly competitive, noting that pricing pressure has prevented operators from passing increased costs to passengers.
The source said airlines are instead absorbing losses while reassessing their pricing strategies.
The situation has been further complicated by declining passenger traffic in recent years, with domestic and international movements falling from 16.2 million in 2022 to 15.6 million in 2024.
Analysts warn that the continued stability in fares may not be sustainable. Aviation expert Olumide Ohunayo described the cost environment as “unsustainable”, noting that airlines may struggle to recover operational losses even if fares are adjusted upward.
He explained that the rapid rise in aviation fuel prices has created severe pressure across the sector, while calling for government intervention through temporary tax reliefs and policy support.
A retired pilot, Muhammad Badamosi, also noted that airlines are wary of raising fares further due to fears of losing passengers to road transport, which remains a cheaper alternative for many Nigerians amid economic hardship.
He said operators are balancing survival with demand retention, describing the situation as a delicate financial equilibrium.
At several airports, aviation fuel prices remain highest in Sokoto at N2,557 per litre, followed closely by Kano and Port Harcourt, while Lagos records the lowest rate at N2,500 per litre.
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Industry stakeholders continue to monitor the situation closely as the Airfares Remain Stable Amid Fuel Crisis phenomenon raises questions about the long-term viability of Nigeria’s domestic aviation sector under rising global energy pressures.
The Gusau International Airport (GIA) in Zamfara state has passed the International Civil Aviation Organisation’s (ICAO) quality assurance tests and inspections ahead of the commencement of commercial operations next month.
The development comes as the airport prepares to begin scheduled commercial flights between Gusau and the Nnamdi Azikiwe International Airport in Abuja.
According to a statement by the state government on Tuesday, XEJet Limited is expected to operate bi-weekly flights on Mondays and Fridays from the first week of October.
An official of a leading Nigerian aviation agency said the airport’s instrument flight procedures had undergone ICAO’s 17-step quality assurance and approval process, with GIA completing and passing all the stages.
The official, who spoke on condition of anonymity because he was not authorised to speak, said the process was part of Nigeria’s efforts to implement corrective measures recommended by ICAO.
ICAO is a specialised agency of the United Nations responsible for coordinating international air navigation standards and promoting the safe and orderly development of international air transport.
Nigeria’s civil aviation system recorded an effective implementation (EI) score of 75 percent after an ICAO audit in 2023.
The official said ICAO conducted a follow-up inspection, known as the ICAO coordinated validation mission (ICVM), in April 2026, during which Nigeria had a significant safety concern (SSC).
He said the concern was resolved within the prescribed 40-day period, although Nigeria was required to implement associated medium-term corrective action plans.
As part of the corrective measures, the instrument flight procedures at several Nigerian airports were subjected to ICAO’s 17-step quality assurance and approval process.
“Of all the airports assessed, only Gusau International Airport (GIA) completed and passed all the 17 steps,” the senior aviation official said.
“The evidence of GIA’s successful completion of this demanding process formed part of the documentation submitted to ICAO.
“Following the ICVM, Nigeria achieved an impressive EI score of 95.1%.”
On September 21, the Zamfara government signed an air route development partnership agreement with XEJet for scheduled commercial flights between Gusau and Abuja.
The agreement is expected to enhance access to Zamfara and open greater opportunities for investors, businesses and visitors.
Gusau International Airport internet deployment begins ahead of October 1 commercial operations, with free connectivity planned for passengers and staff
The Zamfara State Government has signed an Air Route Development Partnership Agreement with XEJet Limited for scheduled commercial flights between Gusau International Airport and Nnamdi Azikiwe International Airport, Abuja.
The Memorandum of Understanding signed on Monday marked an important step towards improving connectivity and facilitating business, investment, tourism and economic growth in Zamfara State.
A statement by the Governor’s Spokesperson, Sulaiman Bala Idris, disclosed that the Zamfara State Deputy Governor, Malam Mani Mummuni, chaired the signing ceremony.
The statement added that the Secretary to the State Government, Malam Abubakar Mohammed Nakwada, signed on behalf of the State Government.
The statement read in parts: “Zamfara State government has signed an Air Route Development Memorandum of Understanding (MoU) with XEJet Limited for scheduled commercial flights connecting Abuja and Gusau.
“Under the agreement, XEJet will operate bi-weekly flights beginning next month.
“The new air route will enhance access to Zamfara and open greater opportunities for investors, businesses and visitors.”
In his remarks at the ceremony, the Deputy Governor emphasised that the partnership aligns with the state government’s strategic goal of enhancing transportation infrastructure.
He said, “The Gusau International Airport was built entirely from scratch and completed within two years.”
“The main goal of constructing the airport is to make it easier and more efficient for people and goods to move, which should help boost the economy.”
“Governor Lawal has been actively seeking international investors and donor agencies, all of whom are willing to invest in Zamfara.”
“This milestone of initiating a commercial flight will draw potential investors. Improving the state’s accessibility is our top priority, as it will create a more welcoming environment for business growth and investment.”
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