The Airline Operators of Nigeria (AON) said fares would become more affordable if government taxes and levies were reduced and aviation infrastructure improved. The body maintained that, despite public perception, Nigeria still ranks among the countries with the lowest domestic air fares globally.
Speaking on Morning Brief, a Channels Television programme, AON spokesperson Professor Obiora Okonkwo dismissed allegations of price gouging, attributing recent fare increases to operational realities and seasonal demand, particularly during the Yuletide period when travel volumes rise sharply.
He explained that airline pricing follows an established aviation model based on multiple ticket classes and overall yield management. According to him, airlines calculate average returns by spreading costs across all seats on an aircraft, including unsold ones, in order to break even and maintain their fleets.
Okonkwo noted that while some passengers may pay as much as ₦400,000 for a ticket, others on the same flight could have paid significantly less, sometimes as low as ₦150,000. He stressed that airlines must balance pricing across different ticket classes to cover operating expenses and remain viable.
Highlighting the financial burden on local operators, he said Nigerian airlines face the same international costs as their foreign counterparts when acquiring aircraft, spare parts and maintenance services, all of which are priced in dollars. He added that even pilot remuneration aligns with global standards, regardless of whether the pilots are Nigerian or expatriates.
According to Okonkwo, about 99.5 per cent of airline operating expenses are dollar-denominated, while ticket sales are made in naira, exposing operators to exchange rate pressures. He further pointed out that Nigerian airlines often take loans at interest rates as high as 30 to 35 per cent, compared to single-digit rates in other countries.
He also criticised what he described as excessive taxes, charges and levies imposed on operators, many of which, he claimed, do not exist elsewhere in the world. These costs, he said, are ultimately passed on to passengers as part of ticket prices.
Okonkwo argued that airlines act as collection points for charges imposed by various players in the aviation ecosystem, including ground handlers and the Nigerian Civil Aviation Authority (NCAA). He called for a review and removal of most of these charges, citing international standards set by the International Civil Aviation Organisation (ICAO).
He added that the International Air Transport Association (IATA) has previously identified Nigeria as one of the most expensive environments in which to operate an airline, warning that unless structural issues are addressed, pressure on fares will persist despite operators’ efforts to keep prices low.