Nigerian airlines have accumulated more than ₦60 billion in loans from local banks to finance the purchase of aviation fuel, as persistently high Jet A1 prices continue to put pressure on the industry.
The Airline Operators of Nigeria disclosed the development, highlighting the growing financial burden facing carriers as they struggle to meet the rising cost of operating flights.
According to the operators, the high price of Jet A1 has significantly increased airlines’ operating expenses, forcing some carriers to rely on bank financing to maintain regular operations and keep up with their fuel obligations.
Aviation fuel remains one of the largest operating costs for airlines, and sustained increases in its price have continued to affect the financial stability of carriers operating in Nigeria.
The accumulation of more than ₦60 billion in fuel-related loans underscores the pressure on airlines and the extent to which rising operational costs are affecting the sector.
Airline operators have repeatedly raised concerns about the cost of aviation fuel and other expenses, warning that the situation could continue to undermine the sustainability of air travel if operating costs remain elevated.
The latest disclosure therefore highlights the growing financial challenges confronting Nigerian airlines, with carriers increasingly depending on local bank loans to meet one of their most essential operational expenses.
