FG Summons Airline Stakeholders to Emergency Meeting Over Fuel Price Surge

FG Summons Airline Stakeholders to Emergency Meeting Over Fuel Price Surge
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The Federal Government has appealed to domestic carriers to suspend plans to halt flight operations following the sharp spike in the price of Jet A1 fuel, warning of far-reaching economic consequences if services are disrupted.

 

Minister of Aviation and Aerospace Development, Festus Keyamo, made the appeal in a letter addressed to the Airline Operators of Nigeria (AON), urging them to also reconsider any immediate increase in airfares.

 

The intervention comes amid growing concerns over threats by airlines to suspend operations next week as the cost of aviation fuel continues to surge.

 

“I write in reference to your correspondence… concerning the operational challenges currently confronting your member airlines, especially the sudden hike in Jet A1 fuel from N900 per litre as at three months ago to N3,300 per litre as at today, representing a 300% increase,” Keyamo stated.

 

Despite the pressures, the minister commended operators for maintaining services under difficult conditions.

 

“At the outset, I wish to commend the resilience, professionalism, and steadfast commitment of your members in sustaining air transport services under evidently difficult conditions,” he added.

 

Keyamo reaffirmed the Federal Government’s commitment to supporting the aviation sector, describing it as critical to national development.

 

“Let me reiterate that the administration of President Bola Tinubu accords the aviation sector the highest strategic importance… essential to trade facilitation, national security, employment generation, and overall economic integration,” he said.

 

He further urged airlines to show restraint in raising ticket prices, noting that higher fares could worsen the burden on passengers and reduce travel demand.

 

“Any immediate upward adjustment in ticket prices would impose significant hardship on the travelling public, potentially depress demand, and limit accessibility to air transport,” the minister warned.

 

On the threat of a shutdown, Keyamo cautioned that suspending operations would negatively impact the economy.

 

“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 ongoing reforms,” he said.

 

The minister assured stakeholders that the Federal Government is actively working to address the crisis.

 

“I wish to formally assure you that the concerns raised by your members have received the full attention of the Federal Government and we shall take immediate steps to address the issues,” he said.

 

He also disclosed that an emergency stakeholders’ meeting has been scheduled in Abuja next week to find a sustainable solution.

 

“A high-level emergency stakeholders’ meeting has been scheduled… bringing together all relevant stakeholders and regulatory authorities with a view to achieving a prompt, practical, and sustainable resolution,” Keyamo added.

 

Earlier, the Airline Operators of Nigeria described the fuel price surge as “astronomical and artificial,” warning that revenues could no longer cover fuel costs and that the situation poses an existential threat to the industry.

 

The group cautioned that a shutdown could trigger job losses, disrupt financial systems, and worsen insecurity, while noting that transferring the costs to passengers through higher fares could significantly suppress demand.

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