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.