The President of the Plane House owners and Pilots Affiliation of Nigeria (AOPAN), Dr Alexander Nwuba, has mentioned that Nigerian home airways are working on dangerously skinny earnings, incomes nearly N8 per kilometre regardless of excessive air fares.
He made the disclosure throughout an aviation city corridor webinar titled, ‘Excessive Air Fares – Are Airways Actually the Downside?’ held in Lagos final week.
This skinny margin, he famous, is answerable for the sector’s vulnerability to disruptions, rising operational prices, and the problem of protecting fares inexpensive for passengers.
What they’re saying
Dr Nwuba mentioned Nigerian airways earn simply N8 revenue per kilometre, with home flights costing N104 per kilometre to function and income at solely N112, leaving carriers extremely susceptible regardless of excessive air fares.
“A Boeing 737 Lagos–Abuja flight prices about 9,000 {dollars} to function,” he mentioned, citing a 162-seat configuration.
He added, “Value per seat ranges between N77,000 and N84,000 on such flights.” He defined,
“For sustainability, fares should exceed N100,000. Something decrease displays a low-cost mannequin most airways can not presently maintain.” He mentioned,
“Value per kilometre is N104, income per kilometre is N112, leaving solely N8 revenue per kilometre.” He famous,
“This slim N8 margin means any shock, reminiscent of gas spikes or grounded plane, rapidly turns flights into losses.”
He defined that present fares are decided completely by value constructions somewhat than distance or flight time, making a market actuality the place affordability stays a persistent problem for passengers.
Aviation gas makes up about 38% of working prices, whereas plane leasing and upkeep account for a lot of the remainder, elevating the minimal sustainable ticket worth for home flights.
Passenger patterns and rising fares
Dr Nwuba defined that home passenger numbers fell between 2022 and 2025 as air fares rose quicker than actual incomes, rising monetary strain on airways.
- On South-East routes throughout the yuletide interval, outbound flights have been practically full at 95% occupancy, whereas return flights averaged solely 35%.
- This resulted in a mixed load issue of 65%, beneath the break-even degree for carriers.
He added that this imbalance, mixed with lowered fleet sizes as a consequence of upkeep and financing challenges, drives operational prices greater.
In consequence, fares stay persistently excessive, reflecting underlying value constructions somewhat than deliberate profiteering.
Flashback
Throughout the December yuletide rush, Nigerians reacted strongly to hovering flight fares, which greater than doubled in lots of situations.
- On the time, AOPAN President Dr Alexander Nwuba defined that the surge in December fares was largely pushed by seasonal demand, as many travellers waited till the final minute to e book flights.
- He famous that airways modify costs to stability excessive demand throughout the festive interval whereas offsetting decrease revenues earned throughout off-peak months, making the rise a standard financial response somewhat than deliberate profiteering.
The Minister of Aviation, Festus Keyamo, added that the federal authorities has no authority to repair airfares, emphasizing that pricing in Nigeria’s totally deregulated aviation market is decided completely by market forces.
What it is best to know
Nigerian airways have lengthy cited taxes, levies, and excessive working prices as main elements in ticket pricing, together with the $11.5 APIS safety levy that raised complete worldwide ticket expenses to $31.50.
- In 2024, Nigeria earned $62 million from airline ticket taxes, a part of $1.97 billion collected throughout Africa.
- As of January 25, 2026, no replace has been issued on the deliberate ECOWAS abolition of air ticket taxes, that means the tax burden stays in place. Mixed with excessive gas, leasing, upkeep, and borrowing prices, these elements proceed to push fares greater.
In December, Air Peace CEO Allen Onyema warned that home financial system airfares might exceed N1 million following new tax reforms that took impact in January 2026.
Onyema mentioned the tax reforms eliminated VAT exemptions on plane, spare elements, and air tickets, sharply elevating working prices, that are prone to be handed on to passengers.
