H1 2026 Review: Airlines battle rising operational costs, FAAN faces policy hurdle
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By Dickson Omobola
The first half of 2026 was a mixed bag for the country’s air transport sector, with airlines grappling with rising operating costs while government agencies, especially the Federal Airports Authority of Nigeria, FAAN, and Nigeria Civil Aviation Authority, NCAA, came under fresh scrutiny.
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While airlines struggled with the sharp increase in the cost of aviation fuel, better known as Jet-A1, and numerous bird strikes, FAAN failed to seamlessly implement its cashless payment policy, which commenced at the Lagos and Abuja airports.
In February, fire also gutted the old terminal of the Murtala Muhammed International Airport, MMIA, Lagos, destroying several items, including critical air-to-ground communication equipment. The inferno brought FAAN under scrutiny, with insurance experts claiming that the MMIA and many other FAAN-managed airports across the country lacked insurance cover.
The first half of the year also tested the NCAA’s regulatory oversight. One incident that drew public attention to the agency was the landing of a private aircraft on a road in the Ogwashi-Uku area of Asaba, the Delta State capital.
Airlines
For domestic carriers, the period was particularly challenging. They battled a surge in the price of aviation fuel and numerous bird strikes that disrupted operations and increased maintenance costs. Akwa-Ibom state-owned airline, Ibom Air, said the cost of fueling its aircraft tripled between January and April from an average of N2.1m per flight in January to N7.6m in April.
Following a reported 300 per cent spike in the price of Jet-A1 in April, the Airline Operators of Nigeria, AON, threatened to shut down operations from Monday, April 20, 2026. During the period, Air Peace reduced its Abuja-London flight frequency, Rano Air also announced the temporary suspension of some of its flight operations.
At the time, AON, in a letter signed by its President, Abdulmunaf Sarina, stated that the price of Jet-A1 sold by marketers had increased from N900 per litre as of February 28, 2026, to N3,300 per litre, forcing some airlines to cut routes, while others temporarily suspended operations.
However, the Major Energies Marketers Association of Nigeria, MEMAN, dismissed the claim.
MEMAN Executive Secretary, Clement Isong, said the association’s internal market survey showed that the quoted price was more than N1,000 higher than the average rate obtainable in the market.
Though he acknowledged the severe pressure on airline operators, Isong attributed the surge in Jet-A1 prices to external shocks, particularly tensions in the Middle East, which disrupted global supply chains and pushed up the cost of refined petroleum products.
Also, within the first six months of the year, no fewer than 11 bird strikes were recorded by the country’s airlines, leading to operational disruptions and financial losses.
United Nigeria Airlines, UNA, and Nigeria’s largest carrier, Air Peace, were among the airlines worst affected. At one point, UNA suffered three bird strikes within 48 hours, leading to significant operational disruptions.
Lamenting the recurring incidents at the 2026 IATA Focus Africa Conference, spokesperson for AON and Chairman of UNA, Professor Obiora Okonkwo, said: “From January to April, we (UNA) have had seven bird strikes. As we speak now, we (UNA) have two aircraft on the ground, AOG. 40 to 50 per cent of the downtime experienced by Nigerian airlines is caused by bird strikes.”
FAAN
On March 1, FAAN commenced the implementation of its cashless payment policy at the Lagos and Abuja airports. However, the rollout was fraught with challenges and was eventually suspended on the directive of President Bola Tinubu.
The policy resulted in long queues and delays for travellers heading to the airports, while other airport users were trapped in hours-long traffic congestion.
On the second day of the rollout, Saturday Vanguard observed that, as motorists sought to obtain the FAAN Go Cashless Card and make payments, vehicles queued from the pedestrian bridge at the NAHCO Bus Stop to the Murtala Muhammed International Airport tollgate in Lagos.
Commercial and private vehicles attempting to exit the airport were also forced to endure long waits as electronic payment points struggled to process transactions promptly.
By the fourth day, although the situation had improved slightly, traffic still stretched from the NIGAV Centre to the airport tollgate.
Announcing the suspension after four difficult days, Minister of Aviation and Aerospace Development, Mr Festus Keyamo, said: “Mr President, out of empathy, directed today that we should suspend the present system because it creates a lot of gridlock and Nigerians are suffering as a result of it.”
NCAA
On Wednesday, June 10, a private aircraft with registration number N989BC, operated by VMO Aero Ltd, landed on a road in the Ogwashi-Uku area of Delta State, sparking national concern.
The aircraft, which reportedly had four crew members on board, later departed the location and returned to Lagos without obtaining the requisite regulatory approval.
The 75-year-old pilot and his 70-year-old co-pilot were suspended pending the outcome of ongoing investigations.
Experts’ insights
Commenting on some of the developments in the first half of 2026, Chief Executive Officer of Belujane Konzult, Mr Chris Aligbe, told Saturday Vanguard: “The first half of 2026 was difficult for everyone, it was not just the airlines. The closure of the Strait of Hormuz impacted on not just the airlines but everyone. The cost of fueling one’s vehicle also increased. I praise some airlines that managed to keep their costs low. Others could not, but they cannot be blamed. They are facing high costs arising from the increase in the price of Jet-A1.”
Meanwhile, President of the Aviation Safety Round Table Initiative, ASRTI/ART, Air Commodore Ademola Onitiju, retd, said the first half of 2026 had not been encouraging, especially as the country’s airlines battled high operating costs occasioned by the rise in the price of Jet-A1.
Speaking to Saturday Vanguard, Onitiju said: “It has not been too good as far as we are concerned. But we made what we call an advisory. The Aviation Round Table sent an advisory to the government and its agencies on how to make life easier for, and encourage, the airlines to remain in business.
“We felt that government could bring down the price of aviation fuel through direct intervention and by engaging the Dangote Refinery because the situation is akin to a national emergency. Government should treat it as such.”
On bird strikes, he said: “They are within FAAN’s responsibility. It is the authority’s duty to ensure that regular fumigation and pest control services are carried out to keep the airspace around aerodromes free of birds and other attractions.
“FAAN has a department responsible for this. It is about exercising adequate control to ensure that birds are kept away from aerodromes and flight paths.
“By ensuring that the surroundings do not encourage birds to thrive, the authority can minimise hazards that affect aircraft operations, profitability and flight schedules. Bird strikes occur all over the world, but they are reduced to the barest minimum where authorities remain vigilant and understand their implications. Bird strikes are not uncommon in the aviation sector, but sustained pest control and wildlife management help keep them to the barest minimum.”
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