The spike in JetA1 price is largely due to the crisis in the Middle East, which has slowed the production and movement of crude oil across countries, worsening the operational cost of domestic carriers.
Checks with airlines showed an astronomical increase in the operating cost of airlines, particularly caused by the spike in aviation fuel, which has become the dominant cost driver in recent weeks.
At the time of filing this report, aviation fuel, which was sold between N900 and N995 before the Middle East crisis commenced, has jumped to between N2,500 and N2,700, depending on the airport of delivery, sharply raising the cost burden for operators.
Airlines under pressure after jet fuel surges 100%
