The lingering scarcity of Jet A-1 fuel in Nigeria has forced domestic airlines to ground large jets and shift to smaller, fuel-efficient regional aircraft. The price of aviation fuel has risen nearly four times from under N900 per liter at the end of 2023 to between N2,200 and N3,300 per liter in 2026. This domestic surge reflects a global crisis where jet fuel prices have jumped by over 100 percent to more than $200 per barrel. Soaring input costs have inflated airline overheads, leaving operators with no choice but to raise fares.
Higher ticket prices have triggered consumer backlash.
During off-peak periods, carriers experience very low bookings as travelers push back against expensive airfares.
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That drop in passenger demand has made operating larger aircraft financially unsustainable. Carriers running big mainline jets frequently fly them half-empty, driving up operational costs per flight while burning through heavily priced fuel. According to Charles Grant, Chief Financial Officer of Aero Contractors, the sector is underperforming its potential. Domestic passenger volume has declined since 2022 despite rising travel demand, a situation he attributed to fiscal charges, high operating costs, and regulatory bottlenecks.
“Airlines are deploying a strategy of right-sizing,” said Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria. “Flying a large, 150-seat aircraft half-empty on domestic routes is financial suicide.”
“Fuel represents up to 40 percent of an airline’s operating costs.
Nwuba said moving from a standard narrow-body jet to a modern regional jet cuts hourly fuel burn by 25 to 30 percent. Switching to a turboprop like the ATR 72 for short domestic routes drops fuel burn by up to 70 percent. Smaller aircraft also reduce airport landing fees, navigation charges, and ground handling costs due to lower maximum takeoff weight. Airlines are also focusing on weight reduction through lightweight slimline seats, single-engine taxiing, and flexible fleet management.
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Samuel Caulcrick, former Rector of the Nigerian College of Aviation Technology, told the outlet that fuel is a major variable cost that effectively dictates profit margins. “Fuel burn is directly proportional to the aircraft weight — the higher the weight, the more fuel is burnt on a particular flight,” he said. He noted that lower-cost carriers charge extra for weight through their ticket model, making planes like the B737 and A220-300 more viable for them. But for Nigerian full-service carriers, every extra kilogram triggers a compounded cycle of increased burn. “Fuel is now the primary driver of earnings. Even minor shifts in price can swing airline profitability from black to red,” Caulcrick added.
The commercial logic of downsizing comes down to simple numbers.
A Boeing 777-300 requires 365 to 396 passengers to break even. A Boeing 737-800 needs 162 to 189 travelers. The Embraer ERJ-145 carries an average of 50 passengers. The ATR 72 seats 72 to 78. The CRJ-900 holds 76 to 90. What this has done is force a fleet reshuffling across nearly every carrier operating in the country.
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Air Peace, Nigeria’s largest carrier, has benched roughly half of its 16 mainline Boeing aircraft, including four parked 737-300s, two 737-500s, one 737-800, and a Boeing 777-300. Its regional Embraer fleet stays highly utilized.
Thirteen of those aircraft are actively deployed, with only two E195-E2 models listed as inactive. Arik Air shows a near-total shift. Out of seven Boeing 737s, six are parked. Five of its seven Bombardier aircraft are also grounded. Max Air has parked four of its 10 mainline Boeing planes while relying on a single active Embraer ERJ-135. Ibom Air keeps all seven of its CRJ-900s fully active, though its two larger Airbus A220-300s are currently inactive.
Allied Air, a cargo operator, has parked one of its three Boeing 737-800 freighters. NG Eagle sustains operations with a single Embraer ERJ-145 after parking three of four 737s. Aero Contractors operates two of its three Boeing aircraft. Azman Air has permanently parked its entire fleet of four 737-500s after suspending flight operations entirely. United Nigeria Airlines runs with active Embraer ERJ-145s and ERJ-190s alongside two Bombardier CRJ-900s and a single A320-200. Overland Airways, insulated by its turboprop selection, keeps five of six ATR aircraft active. ValueJet has deployed seven active Bombardier CRJ series jets with only two idle. Xejet Airline, Enugu Air, and Green Africa all maintain largely active regional fleets. Newer players like Binani Airline and Ogun State-owned Gateway Air have skipped large jets entirely, operating Embraer and Bombardier regional aircraft from the start.