Local airlines park big planes amid skyrocketing JetA1 fuel price

A lingering scarcity of Jet A-1 (aviation fuel) and the consistent price hikes have forced Nigerian domestic airlines into a major operational shift, grounding large, fuel-heavy jets to smaller, fuel-efficient regional aircraft.

The economic realities of the sector have deteriorated over the last five years. In Nigeria, the price of aviation fuel skyrocketed nearly four times from under N900 per litre at the end of 2023 to a sharp rise between N2,200 and N3,300 per litre in 2026.

This domestic surge reflects an equally global crisis, where jet fuel prices have jumped by over 100 percent to more than $200 per barrel. Soaring input costs have inflated airline overheads, leaving operators with no choice but to implement airfare increases.

However, these higher ticket prices have triggered an obvious consumer backlash. BusinessDay gathers that during off-peak periods, airlines experience very low bookings as travellers push back against expensive airfares.

This drop in passenger demand has made operating larger aircraft financially unsustainable. Carriers running big mainline jets are frequently forced to fly them half-empty, a scenario that drives up operational costs per flight and burns through heavily priced fuel.

According to Charles Grant, Chief Financial Officer of Aero Contractors, the sector is underperforming its potential, with a declining domestic passenger volume since 2022, despite rising travel demand.

The decline is attributed to various challenges, including fiscal charges, high operating costs, and regulatory bottlenecks. Grant noted that while demand for air travel is high in Nigeria, local airlines are struggling to compete with foreign carriers that have built viable business models around Nigerian traffic.

Compounding the crisis is the fact that older, larger aircraft naturally cost airlines significantly more to maintain, fuel, and operate compared to younger, smaller regional equipment.

Faced with these margins, findings show that domestic airlines have gradually shifted away from ordering or deploying large mainline models such as the Boeing 737, 727, 747, 777, and Airbus A220-300.

Instead, carriers are actively shifting to leaner regional platforms for their domestic and West African operations. Fleet deployments are now dominated by ERJ-145 hopper jets, CRJ-100/200/700/900 series, ATR 72 turboprops, and modern Embraer variants.

The commercial logic driving this downsize comes down to a simple seating and capacity mismatch: a standard Boeing 777-300 demands 365 to 396 passengers to break even, and a Boeing 737-800 requires 162 to 189 travellers. Meanwhile, an Airbus A220-300 seats between 120 and 150, and standard Boeing 737-300/500 models require 108 to 149 passengers.

For the small planes, Embraer ERJ-190 (E190) typically carries between 94 and 114 passengers, Embraer ERJ-145 carries an average of 50 passengers, Embraer ERJ-170 carries between 66 and 76 passengers, ATR 72 has capacity for 72 to 78 passengers; CRJ-900 has capacity for 76 to 90 passengers; CRJ-200 takes an average of 50 passengers; CRJ-700 has between 66 and 78 passenger capacity and CRJ-1000 can take an average of 97 passengers.

“Airlines are deploying a strategy of right-sizing. Fuel represents up to 40 percent of an airline’s operating costs. Flying a large, 150-seat aircraft half-empty on domestic routes is financial suicide,” Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria, told BusinessDay.

He said shifting to smaller, modern aircraft isn’t just about cleaner engines; it’s about matching the aircraft’s capacity to actual market demand so airlines aren’t paying to fly empty seats.

Nwuba explained that the savings from using smaller aircraft are massive, adding that moving from a standard narrow-body jet to a modern regional jet cuts hourly fuel burn by 25 to 30 percent.

“If an airline switches to a turboprop like the ATR 72 for short domestic routes, fuel burn drops by up to 70 percent. Beyond fuel, smaller aircraft have a lower maximum takeoff weight, which drastically reduces airport landing fees, navigation charges, and ground handling costs,” he added.

According to Nwuba, airlines are now focusing on weight reduction by swapping to lightweight slimline seats and digital flight decks, utilising single-engine taxiing on the ground, continuous descent approaches and using flexible fleet management to instantly swap a smaller regional jet onto a route if ticket sales for that day drop.”

Using data from Planespotters.net, a prominent website that tracks aircraft and records information regarding aircraft fleet, type, age and more, BusinessDay gives the breakdown on big planes that have been parked and small planes now gracing the country’s airspace.

Air Peace, Nigeria’s largest carrier, has benched approximately half of its 16 mainline Boeing aircraft. This includes four parked Boeing 737-300s, two 737-500s, one 737-800, and a large Boeing 777-300. Conversely, the airline’s regional Embraer fleet remains highly utilised: 13 of its Embraer aircraft are actively deployed, including seven ERJ-145 hoppers and all of its ERJ-190s, with only two E195-E2 models listed as inactive.

Arik Air’s fleet strategy shows a near-total shift away from large jets. Out of its seven Boeing 737s, six are currently parked, leaving just a single active unit. Additionally, Arik has benched five of its seven Bombardier aircraft—specifically grounding two DHC-8-400 turboprops and three CRJ-900 regional jets.

For Max Air, out of its fleet of 10 mainline Boeing aircraft (consisting of 737s, 777s, and 747s), it has parked four, while relying heavily on its single, highly active Embraer ERJ-135 to maintain operational efficiency.

Ibom Air, known for a modern regional fleet strategy, has kept all seven of its Bombardier CRJ-900s fully active, while its two larger, higher-capacity Airbus A220-300s are currently inactive for now.

The economic strain has hit Allied Air, a dedicated cargo operator as well; the freighter airline has parked one of its three Boeing 737-800 cargo aircraft.

Out of four Boeing 737s on NG Eagle’s fleet, three have been parked, leaving the airline to sustain operations with its single active Embraer ERJ-145 hopper.

Legacy carrier, Aero Contractors, currently operates two out of its three Boeing aircraft, having parked one of its Boeing 737-500s.

Having suspended its flight operations entirely, Azman Air has permanently parked its entire fleet of four Boeing 737-500 aircraft.

United Nigeria Airlines runs with three active Embraer ERJ-145s, one active ERJ-190, and just one parked ERJ-145. It supplements this capacity with two active Bombardier CRJ-900s and a single active Airbus A320-200.