Air fares now dominate conversations among Nigerian travellers, as domestic flying increasingly feels like a luxury.
Ticket prices remain high, and passengers often blame airlines.
However, industry figures reveal a different reality.
Air Fares Bite Passengers
At a Lagos aviation town hall, AOPAN President Dr Alexander Nwuba said airlines barely survive.
Despite high fares, airlines earn only ₦8 per kilometre, leaving them financially vulnerable.
Thin Margins Threaten Airlines
He explained that airlines spend about ₦104 per kilometre to operate domestic flights.
Revenue averages ₦112, leaving a dangerously thin margin.
Consequently, any disruption, such as fuel spikes or maintenance delays, can quickly turn profits into losses.
For instance, Dr Nwuba calculated that a Boeing 737 flying Lagos–Abuja costs about $9,000.
With 162 seats, airlines incur ₦77,000 to ₦84,000 per passenger.
Therefore, they must charge fares exceeding ₦100,000 to remain sustainable, a level many passengers cannot afford.
Fuel accounts for about 38% of operating costs.
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In addition, aircraft leasing and maintenance consume most of the remainder.
Thus, airlines must set ticket prices based on these expenses, limiting flexibility to reduce fares.
Between 2022 and 2025, rising fares pushed many passengers out of the market.
During December, South-East outbound flights reached 95% occupancy.
However, return flights averaged just 35%, reducing overall profitability.
Airlines now operate smaller fleets due to financing and maintenance challenges.
As a result, reduced capacity raises operating costs and keeps fares high.
Seasonal Surges And Taxes
Public anger peaked during the yuletide season when airlines doubled fares.
Industry operators argued that high prices reflected seasonal demand and late bookings.
In this way, airlines offset weaker revenues during off-peak periods.
Aviation Minister Festus Keyamo clarified that the government cannot regulate airfares.
Since Nigeria’s aviation market fully deregulates pricing, airlines must follow market forces.
Taxes and levies further increase ticket prices.
For example, Nigeria collected $62 million from airline ticket taxes in 2024.
Moreover, ECOWAS has not yet implemented plans to remove these charges.
New tax reforms, introduced in January 2026, may further worsen the situation.
Air Peace CEO Allen Onyema warned that fares could rise sharply.
He explained that removing VAT exemptions on aircraft, spare parts, and tickets increases costs, which airlines will pass to passengers.
Consequently, passengers will likely face persistently high fares.
Meanwhile, airlines must carefully manage rising costs and fragile margins to survive.