Lagos — Stakeholders in Nigeria's aviation sector have called on the federal and state governments to urgently intervene in the sharp rise in aviation fuel prices, which is threatening the successful airlift of Nigerian pilgrims to Saudi Arabia for the 2026 Hajj.
Domestic airlines in the country have begun scaling down their operations amid the ongoing Jet A1 aviation fuel crisis affecting the industry.
Consequently, stakeholders under the aegis of the Concerned Aviation Stakeholders said immediate action is required to save the 2026 Hajj operation from one of the most severe logistical and financial challenges in recent history, driven by the rising cost of aviation fuel.
The President of the group, Alhaji Bukalti Usaman Gamawa, who made the call in a statement on Sunday, noted that the skyrocketing cost of Jet A1 fuel continues to threaten the airlift of thousands of Nigerian pilgrims to the Kingdom of Saudi Arabia.
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"Many of the airlines contracted for the 2026 Hajj operations are expected to lease aircraft to meet capacity demands. With the current fuel price increase on both legs, much of their projected profit margin has already been wiped out.
"In some cases, airlines may end up operating at break-even or even at a loss, effectively flying for free after covering lease and operational expenses. If urgent action is not taken, some airlines may find it financially impossible to commence operations from Nigeria or sustain return operations from Saudi Arabia," he said.
The group's president stated that although the Federal and State Governments no longer provide direct subsidies for Hajj operations in Nigeria, stakeholders believe urgent policy measures, pricing regulation, foreign exchange support, or strategic fuel supply arrangements may be necessary to prevent the operation from collapsing.
Gamawa maintained that without swift intervention, coordination, and emergency action from government, regulators, airlines, and marketers, the 2026 Hajj operation may witness one of the highest fare increases in history or, in the worst-case scenario, operational failure.
"In simple terms, the soaring cost of Jet A1 on both the Nigerian and Saudi sides is the clearest reason why Hajj fares are expected to rise sharply in 2026. When Hajj contracts were negotiated and signed, Jet A1 was selling at approximately ₦1,000 per litre in Nigeria, while the average price on the Saudi side was around $0.68 per litre.
"Airlines structured their fares, logistics, and operational plans around these benchmarks. Today, however, the situation has changed dramatically. Across major departure points such as Abuja, Kano, Lagos, Maiduguri, Yola, Sokoto and Birnin Kebbi, Jet A1 is now being sold for as much as ₦3,000 per litre, representing a 200 per cent increase from the original price used in contract projections."
According to him, this sharp rise has placed airlines in a difficult financial position.
He added: "If airlines are forced to absorb the increased fuel cost, many may operate at a loss. If pilgrims are made to absorb it, Hajj fares will rise sharply. If government intervenes, it may require emergency support mechanisms despite the removal of Hajj subsidies in Nigeria."
Gamawa explained that a single aircraft consumes about 70,000 litres of Jet A1 per flight. At the contract benchmark of ₦1,000 per litre, this amounts to ₦70 million, while at ₦2,500 per litre, it rises to ₦175 million.
"Even if the Nigerian government or local suppliers stabilise Jet A1 prices for the first leg of the Hajj operation from Nigeria to Jeddah or Medina, the second phase -- the return flight from Jeddah to Nigeria -- remains a major unresolved challenge.
"The price of Jet A1 on the Saudi side has reportedly risen from around $0.68 per litre at the time the Hajj contract was signed to approximately $1.40 per litre. That represents more than a 105 per cent increase in dollar terms.
"For airlines, this creates a double burden: Outbound leg -- high fuel cost in Nigeria (if not subsidised or discounted); Inbound leg -- high fuel cost in Saudi Arabia in US dollars.
"Unlike Nigeria, where intervention may come through policy or local refinery arrangements, airlines lifting pilgrims back home from Jeddah must purchase fuel at prevailing international market rates in foreign currency," he added.
Local Airlines Cut Operations as Fuel Crisis Deepens, Overpay N150bn in Three Months
Meanwhile, stakeholders in the sector say that between February and April, Nigerian airlines collectively overpaid well above N150 billion on aviation fuel within just three months.
Recall that last week, airlines under the aegis of the Airline Operators of Nigeria (AON) warned that the soaring price of Jet A1 fuel had reached unsustainable levels, posing a serious threat to the viability of their operations.
According to the operators, the cost of Jet A1 surged by more than 300 per cent in less than two months, rising from about ₦900 per litre as of 28 February to as high as ₦3,300 per litre, sparking widespread concern across the aviation sector.
However, a meeting convened by the Minister of Aviation and Aerospace Development, Festus Keyamo, to resolve the impasse between the AON and fuel marketers ended in a deadlock, with no clear agreement reached on reducing Jet A1 prices.
At the end of the meeting, Keyamo indicated that further consultations would continue within 48 hours to reach an agreement with oil marketers on how to manage the 300 per cent increase in aviation fuel prices.
The minister also noted that, given current fuel prices, airline operators may struggle to sustain existing ticket prices and could be compelled to adjust fares to reflect prevailing market realities.
Meanwhile, as fuel costs continue to rise, local airlines have begun cutting back operations by reducing flight frequencies and scaling down routes.
For instance, Air Peace has reduced some of its routes, while Ibom Air is also undertaking similar adjustments.
Air Peace has reduced the frequency of its Abuja-London flights to three weekly services following ongoing Jet A1 supply constraints, affecting one of its key international routes.
The airline disclosed this in a statement issued by its management on Saturday.
The adjustment reflects growing pressure on flight operations linked to aviation fuel availability both within Nigeria and globally, with wider implications for the aviation sector.
Air Peace said the reduced schedule would remain in place until 1 July 2026, when full flight frequency is expected to resume, subject to improvements in Jet A1 supply.
The airline explained that the decision was necessary to maintain operational stability amid persistent fuel challenges.
"Due to the current Jet A1 (aviation fuel) supply constraints affecting flight operations nationwide and around the world, we wish to inform you that our Abuja-London service has been temporarily adjusted to three weekly flights until 1 July 2026," the statement read in part.
The airline added that the move is aimed at ensuring service continuity while managing the impact of fuel shortages on its operations.
On her part, Ibom Air's Group Marketing Manager, Aniekan Essienette, said the airline was doing everything possible to maintain operations but may be forced to take mitigating actions, including capacity reductions, if necessary.
According to her, airlines in Nigeria are already reducing flights to manage the situation, stressing that global fuel price increases are nowhere near what is being experienced in Nigeria.
"The fuel situation is a very severe crisis for Nigeria's domestic airlines. We are doing everything we can to keep operating, but it is clear that the current conditions are unsustainable.
"We note that worldwide, where fuel price increases are nowhere near what we are facing in Nigeria, airlines are reducing flights to manage the situation. We, too, will have to take whatever mitigating actions we can, including reducing capacity if necessary."
United Nigeria Airlines stated that it would continue operating at full capacity despite the current difficulties.
"We are still operating at full capacity despite the difficulties in sourcing fuel," a spokesman said.
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Speaking on the development, the President of the Aircraft Owners and Pilots Association of Nigeria (AOPAN), Dr Alex Nwuba, said the aviation sector had been forced to absorb, in three months, a financial shock equivalent to what the Federal Government allocates to entire ministries for a full year.
According to Nwuba, Nigeria consumes roughly 14,100 barrels of jet fuel per day, translating to about 2.24 million litres daily, but local prices have diverged sharply from global benchmarks.
"This is the fuel that keeps every domestic airline in the sky, every route open, and every job alive. When fuel prices behave normally, this is manageable. But when prices break away from global reality, the consequences become catastrophic.
"Between February and April, global Platts-based parity moved from about ₦860-₦940 per litre in February to about ₦1,559 per litre in mid-April. This is a significant increase, but it remains within global norms.
"Nigeria, however, moved from ₦900 per litre in February to between ₦3,000 and ₦3,300 per litre in April. That is not a market adjustment; it is a rupture. When multiplied by daily consumption, the scale becomes stark.
"In March, airlines were overpaying roughly ₦500-₦700 per litre, amounting to ₦1.1-₦1.5 billion daily in excess costs.
"By April, the gap widened to ₦1,400-₦1,700 per litre, translating to ₦3.1-₦3.8 billion daily in overpayment. Across February to April, even using conservative estimates, Nigerian airlines have overpaid well above ₦150 billion.
"This is not a theoretical loss. This is money that should have gone to salaries, maintenance, safety, fleet renewal, and expansion. No industry can sustain such pressure," he said.
Also speaking, aviation analyst Kayode Oyero said airline operators should consider greater control over the aviation fuel supply chain as a long-term solution.
Oyero said: "The market dynamics, economic instability, and exploitative tendencies displayed by some fuel marketers in the last two months make it imperative for airline
