The Chairman and Chief Executive Officer of United Airlines Limited, Prof. Obiora Okonkwo, has said that air travel within Nigeria remains among the cheapest in the world, despite persistent complaints from passengers over rising ticket prices.
Okonkwo, who also serves as spokesperson for airline operators in Nigeria, made the remark on Thursday during an appearance on Channels Television’s The Morning Brief, amid allegations that local carriers have sharply increased fares.
He explained that although Nigerian airlines are under severe financial strain, they have continued to keep fares relatively low when compared with those charged in other countries.
According to him, airlines across the globe operate in the same aircraft market and pay comparable staff salaries, but Nigerian operators face significantly higher costs due to unfavourable loan conditions, multiple taxes, and expenses denominated in dollars.
“I believe domestic air travel in Nigeria is one of the cheapest anywhere,” he said.
“We know what fares look like globally. If you see a $100 ticket, it is usually discounted, and someone else on that same flight may have paid $1,000. High fares often offset lower ones. We operate in the same market, purchase aircraft from the same sources, and pay staff just like airlines elsewhere.”
Okonkwo noted that most aviation expenses in Nigeria — including spare parts, maintenance, and equipment — are paid in dollars, while tickets are sold in naira. He added that local airlines access loans at interest rates of between 30 and 35 per cent, compared to 2 to 7 per cent available to operators in other countries.
“Our costs are extremely high. We also pay numerous taxes that do not exist in many parts of the world, yet fares here remain low,” he said.
He added that on international routes, he often pays about $1,400 for a 45-minute flight, stressing that Nigeria’s relatively cheap fares come at the expense of airline sustainability.
“We have lost many airlines over the years. It is important to reduce taxes and levies so operators can survive, even marginally,” he stated.
The airline executive rejected claims of price gouging, attributing recent fare increases to heightened demand during the festive season. He said such trends are common globally and even reflected in road travel during peak periods.
Okonkwo also criticised what he described as sensationalised fare figures circulating online, noting that the most expensive ticket categories are often mistaken for standard economy fares.
“In any aircraft where you see a fare of N400,000, there are also passengers who paid N100,000 on the same flight,” he said.
“On average, fares may fall between N120,000 and N150,000. We use a structured pricing system with multiple ticket classes, even within economy. Airlines must sell a certain number of seats to break even while covering maintenance, staff salaries, and other costs.”
While acknowledging the burden high fares place on Nigerians, Okonkwo recalled that when tickets sold for between N20,000 and N30,000, the naira exchanged at about N250 to the dollar.
“Even today, the highest fares you see are barely $200. Many of the tickets being circulated online were not economy fares. They were business or premium economy seats, often purchased close to departure,” he explained.
His comments come amid increased regulatory attention on domestic airlines. Recently, the House of Representatives urged the Federal Government to grant tax waivers and cut auxiliary charges by 50 per cent to ease fares during the Yuletide season. The Senate has also summoned the Minister of Aviation, Festus Keyamo, alongside other stakeholders, over rising ticket prices.
Meanwhile, the Federal Competition and Consumer Protection Commission (FCCPC) has expanded its probe into what it described as suspicious and potentially exploitative increases in domestic airfares, particularly on South-East and South-South routes.
In a statement issued last Friday, the FCCPC said it is reviewing airlines’ pricing templates and ticketing practices to determine whether the fare hikes breach the Federal Competition and Consumer Protection Act, 2018. The commission stressed that while it does not regulate prices, it is empowered to protect consumers from exploitation and will act if anti-competitive or collusive pricing is established.
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