FG acts as airlines threaten shutdown over fuel hike

Aviation Minister Festus Keyamo has appealed to domestic airlines to suspend plans to halt flight operations and hold off on hiking airfares, as the Federal Government convenes an emergency stakeholders’ meeting to find a lasting solution to the aviation fuel crisis.

In a letter addressed to the Airline Operators of Nigeria on Thursday, Keyamo acknowledged a staggering 300 per cent surge in the price of Jet A1 fuel — from N900 per litre on February 28 to N3,300 per litre — describing it as a severe operational challenge confronting member airlines.

The appeal comes amid threats by airline operators to suspend flights as early as next week, citing revenues that can no longer cover even basic fuel costs.

Keyamo urged the carriers to exercise restraint on ticket prices despite mounting cost pressures, warning that any immediate fare increase “would impose significant hardship on the travelling public, potentially depress demand, and limit accessibility to air transport for a broad segment of Nigerians.”

He also cautioned against a shutdown, warning of far-reaching economic consequences.

“Such action would have far-reaching adverse implications for the national economy, disrupt critical mobility and logistics networks, erode public confidence, and undermine the progress recorded under the ongoing reforms within the aviation sector,” the minister wrote.

Keyamo assured the operators that the government was taking immediate steps to address the crisis, disclosing that a high-level emergency stakeholders’ meeting had been scheduled for Wednesday, April 22, in Abuja, bringing together all relevant stakeholders and regulatory authorities to achieve “a prompt, practical, and sustainable resolution.”

The AON had, in its April 14 letter to the ministry, described the fuel price surge as “astronomical and artificial,” warning that the situation posed an existential threat to the industry. The operators cautioned that a shutdown would trigger job losses, disrupt financial institutions, and heighten insecurity, while passing costs to passengers through higher fares risked significantly suppressing demand for air travel.