*Says Over 80 Airlines Collapsed Due To Unsustainable Margins, 65-70% Of Ticket Price Goes To Taxes, Levies
Chairman and Chief Executive Officer of Air Peace, Allen Onyema, has declared that Nigerians are paying the cheapest domestic air fares in the world, even as airlines face intense scrutiny from the Federal Competition and Consumer Protection Commission (FCCPC) over alleged exploitative and coordinated price hikes during the festive season.
Speaking in an interview with ARISE NEWS on Sunday, Onyema defended the airline industry against accusations of price gouging, insisting that domestic fares in Nigeria remain far below global standards despite recent increases.
“Nigerians are flying the cheapest fares in the world, domestically. Generally, even this season, Nigerians are paying the cheapest. And I’ll prove it to you now,” the airline boss declared.
To buttress his claim, Onyema provided specific comparisons with American domestic routes. He cited Delta Air Lines’ Atlanta–Charleston route, a flight of under 50 minutes, priced at approximately $399 one-way for mid-January 2026.
“Atlanta to Charleston is about less than 50 minutes by flight. It’s like going to Owerri or thereabouts. Today, it’s selling, in two weeks’ time, for about 400 and something dollars,” he explained.
“One-hour flight costs over $400 out there. For a main cabin, it’s $459. One way is $399 for two weeks’ time. Then maybe in the morning, in the afternoon, it’s about $400 and something. But the basics, $399, when you multiply that by N1,500, you’ll be getting over N600,000.”
In contrast, Onyema noted that Nigerian airlines still offer tickets for as low as N115,000 to N125,000, which translates to less than $60 at current exchange rates.
“In Nigeria, we still have tickets for N125,000. We have tickets for N115,000 in Nigeria, which is less than $60,” he stated.
The Air Peace CEO expressed frustration at what he described as unfair treatment of Nigerian airlines by government agencies, particularly the FCCPC’s characterization of fare increases as “exploitative” and “coordinated price fixing.”
“We in AON, that is, the Airline Operators of Nigeria, have come out to say that enough is enough. The bashing of Nigerian airlines has got to stop,” Onyema said.
“It’s very painful when it’s coming from government agencies that are supposed to know better. Using the word exploitative and coordinated price fixing that is very, very unfair to these airlines. How did they get to that conclusion? What are the parameters they used?”
Onyema explained the peculiar economics of flying to the South-East during the Christmas period, noting that while aircraft fly full to destinations like Enugu, Owerri, and Asaba, they return to Lagos almost empty.
“When you fly to the South-East at this period in time, you’re coming back almost empty. Who pays for the cost of that aircraft coming back? We’re not running charter operations. When you charter a jet, you’re paying for that jet going to drop you off and for that jet coming back empty,” he explained.
“Sometimes zero is the word. We have them, sometimes zero passengers returning. For example, if you take a wet lease aircraft and you’re paying about $6,000 per hour, when you multiply that by N1,500, you’re already getting N8 million just for flight time.”
The airline boss revealed that airlines only receive about 30-35% of ticket prices, with the majority going to taxes, levies, and other charges.
“People are just shouting about the airlines. How much of this money is actually coming to the airline? When you look at it, almost 70 or 65 percent of that money is not coming to the airlines. They’re going somewhere else: levies and taxes and some other charges. But we are the sacrificial lamb,” Onyema lamented.
Onyema highlighted several operational challenges that make running airlines in Nigeria significantly more expensive than in developed countries.
“Aviation is the same aviation worldwide. We buy our spares from the same market. You buy your aircraft from the same market. In fact, they’re even in a better state than us,” he said.
“What’s the financing? They borrow money at 2 percent. Nigerian airlines borrow at 35 percent. The next shop, they could get their spare parts or engines from the next shop. In fact, the same airport where they operate from, the MRO might be there.”
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