Why airlines are vulnerable to price volatility, supply interruptions — Expert

Former Managing Director of the Federal Airports Authority of Nigeria (FAAN), Dr Richard Aisuebeogun, has identified fuel price volatility, foreign-exchange fluctuations and disruptions in global supply chains as major factors exposing airlines to operational and financial risks, warning that these challenges could increase airfares, disrupt flight schedules and weaken connectivity.

Aisuebeogun, who spoke in a paper titled “Navigating Global Disruptions and the Road Ahead: Mobility, Energy and Trade Facilitation for a Resilient Future,” presented at the second edition of Transport Summit 2026, organised by JustAlive Communications Limited recently, called for stronger supply-chain management, strategic fuel infrastructure and the development of domestic technical capabilities to improve aviation resilience.

He explained that airlines operate within a cost-intensive environment in which fuel, aircraft leasing, insurance, maintenance and other essential inputs are significantly exposed to international market conditions and foreign-currency obligations.

According to him, fluctuations in energy prices and disruptions in fuel supply can affect airline operating costs, while foreign-exchange volatility increases the cost of maintaining aircraft, acquiring spare parts and financing fleet expansion.

These pressures, he noted, could constrain investment, delay equipment replacement, increase ticket prices, reduce flight frequency and undermine operational reliability.

Explaining further, he stressed that “conflicts in major energy-producing regions and along important international trade routes can increase the cost of fuel, insurance, shipping, and imported transport inputs. For a country whose transport operators depend on petroleum products and imported technical equipment, these changes can quickly affect service delivery”.

Aisuebeogun stressed that energy security was fundamental to the resilience of the transport sector, particularly aviation, where fuel availability and affordability directly influence service delivery.

“Strategic fuel infrastructure is therefore essential for national resilience,” he stated.

Aisuebeogun identified fuel price fluctuations and supply interruptions as significant risks to transport operations, noting that airlines require reliable access to aviation fuel to maintain schedules and sustain commercial operations.

He explained that disruptions in fuel availability or sharp increases in prices could trigger flight delays and cancellations, increase operating expenditure and place additional pressure on airfares.

“Rising energy costs can translate into higher fares and freight charges, which ultimately increase the cost of food, manufactured goods, and other essential consumer commodities”.

“The aviation industry perhaps demonstrates the importance of energy security. Fuel costs often represent a significant proportion of airline operating expenses. Disruptions in fuel supply can lead to: Flight delays or even cancellations; Increased ticket prices; reduced connectivity; economic losses. strategic fuel infrastructure is therefore essential for national resilience,” he said.

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He consequently advocated strategic fuel infrastructure, diversified sourcing arrangements and improved supply-chain risk management to reduce exposure to external disruptions.