Global aviation fuel cost and supply challenges

The aviation industry is experiencing significant financial and operational strain driven by volatile fuel markets and evolving regulatory requirements.

In Nigeria, airlines are struggling with severe Jet A1 fuel scarcity and dramatic price increases. Following geopolitical tensions in the Middle East, fuel prices rose from N900 to approximately N2,500 per litre. This has caused daily delivery fluctuations and forced some carriers to reduce passenger luggage capacity to carry extra fuel. The rising costs have also led to mounting debts with vendors and flight delays.

On a broader scale, major carriers in the United States reported a 65.4% increase in fuel expenditure compared to the previous year. Simultaneously, in Europe, the Association of Airlines (ALA) has warned that mandatory Sustainable Aviation Fuel (SAF) requirements and tightening CO2 markets could drive up ticket prices. The ALA noted that SAF can be “up to eight times more expensive than conventional kerosene,” prompting calls for €500 million in emission rights to offset these operational costs.