Airline Declines Fare Increase Despite Surge in Aviation Fuel Price

United Nigeria Airlines (UNA) has said it will not immediately increase airfares despite the sharp rise in the price of Jet A1 aviation fuel over the past week.

The cost of aviation fuel currently ranges between N1,803.19 per litre in Lagos, N1,839.19 in Abuja, and N1,852.19 in Kano.

The price of the product has risen by more than 100 per cent within a week, climbing from about N900 per litre on February 28 following the escalation of tensions involving Israel, the United States, and Iran. As of Monday, the fuel was still selling between N1,500 and N1,600 per litre, depending on the airport and supplier.

Chief Operating Officer of United Nigeria Airlines, Mazi Osita Okonkwo, told The Guardian that the sudden increase in fuel prices — the largest single cost component in airline operations — has placed enormous financial pressure on operators.

However, he noted that raising ticket prices at this time could further reduce passenger traffic, which currently remains below 16 million passengers annually, despite projections for higher demand.

Okonkwo explained that although the airline is struggling to absorb the sharp rise in operating costs, management has not considered increasing fares.

According to him, the rapid rise in aviation fuel prices has worsened the already challenging operating environment for local carriers.

He added that while airlines technically have the option to increase ticket prices, doing so could significantly affect passenger demand in a struggling economy.

“Within one week, the price has doubled by about 100 per cent. If you increase fares, passengers who are already flying less may stop flying altogether because the economy is weak. So increasing airfare is not really an option. There must be some form of intervention,” he said.

Okonkwo added that although any airline could choose to raise fares, the impact on passenger numbers would be a major concern.

“Just two weeks ago, a litre of aviation fuel was selling for about N900. Now it has crossed the N1,800 mark,” he said.

He also responded to criticism from some members of the public who accuse airlines of arbitrary fare increases, urging them to consider the realities of the current operating environment.

Okonkwo stressed the need for urgent intervention to prevent the situation from worsening, noting that solutions could come from government action or improvements in global fuel supply conditions.

“Intervention can come from anywhere. Even stopping the war would be an intervention. We do not want the situation to reach a point of no return,” he said.

Industry data shows that aviation fuel accounts for about 40 to 50 per cent of airlines’ operating costs, with aircraft maintenance forming another major expense.