According to reports by the Airline Operators of Nigeria (AON), Nigerian airlines have accumulated more than N60 billion in loans from banks to finance their purchase of aviation fuel, amid persistently high prices of Jet A1.
The huge debt burden reflects the financial pressure facing airlines as fuel remains one of the biggest operating expenses in the aviation sector. With Jet A1 prices staying high, operators have increasingly relied on bank financing tog maintain regular flight operations and meet their fuel obligations.
The situation has also added to the broader challenges confronting Nigeria’s aviation industry, including rising operational costs, foreign exchange pressures and expensive aircraft maintenance. Airlines have had to carefully manage their finances to keep services running despite the difficult business environment.
The AON’s revelation highlights the need for measures that can reduce the cost of aviation fuel and ease financial pressure on local carriers. Industry stakeholders have continued to call for policies that will make airline operations more sustainable and help prevent the mounting debt from affecting the availability and affordability of air travel.
