Chairman of United Nigeria Airlines, Obiora Okonkwo, has warned that domestic airfares will remain high and could worsen unless the Federal Government urgently reduces multiple taxes and charges imposed on air travel, stressing that airlines are operating on razor-thin margins and cannot absorb rising costs without jeopardising safety and survival.
In an interview with ARISE NEWS on Monday, Okonkwo rejected the widespread perception that airlines arbitrarily hike ticket prices, explaining that most expensive fares circulating online are last-minute or premium tickets.
He said, “Some of the tickets people see on social media are bought on the travel day or very close to departure. Others are business or premium class tickets, and people compare them with economy fares.”
According to him, passengers who book early still access lower fares, adding that “in some routes, you can still buy tickets for ₦100,000, ₦150,000 or ₦200,000 because ticket pricing is progressive.”
Okonkwo explained that airlines operate a computerised, tiered pricing system where cheaper tickets are sold first, while passengers who buy late pay higher fares.
He noted that this practice is global, saying, “If you buy your ticket earlier, it is stable and affordable. It is the same thing whether you are flying to London or America.”
He further attributed seasonal fare spikes, particularly on South-East routes, to travel imbalances, explaining that aircraft often fly full in one direction and nearly empty on return legs.
“You might have 70 to 90 per cent load going into the South-East in December, and when you reverse it, you get 50 to 80 per cent coming back. The cost of operating the aircraft is the same going and coming,” he said.
Okonkwo revealed that between 60 and 80 per cent of ticket prices go to taxes, levies and charges paid to multiple aviation agencies and service providers.
“Airline operators are just cash cows for the aviation ecosystem. NAMA, NCAA, ground handlers, fuel suppliers — everybody is paid from the ticket,”he said, adding that airlines are left with as little as 10 to 15 per cent to cover maintenance, salaries and safety operations.
He warned that the proposed implementation of a new tax regime could severely impact air travel. “If that new tax law comes into place, what we are seeing today will be child’s play. It could triple the cost of air travel,” Okonkwo cautioned, noting that such increases would drive passengers away and threaten jobs across the sector.
Emphasising that airlines do not benefit from unaffordable fares, he said, “It is not in our interest for tickets not to be affordable. When Nigerians cannot afford to fly, we won’t have passengers, and when we don’t have passengers, we are out of business.”
Okonkwo insisted that airlines cannot independently reduce fares without risking safety, stating, “The only way things can get better is when government listens and reduces the multiple taxes imposed on air tickets. Every tax introduced is automatically passed to the passenger.”
He urged authorities to shelve new levies and remove existing charges to ease pressure on travellers.
Highlighting the slim profitability of airlines, he said, “The profit margin in aviation is less than five per cent globally. It compensates only with volume.”
He added that even when passengers pay higher fares, airlines’ average revenue per seat can be far lower due to discounted tickets and empty seats.
Okonkwo disclosed that airline operators have intensified engagement with government and lawmakers to push for legislative reforms.
“We have been engaging the nation and stakeholders because this situation requires legislative action. We feel the passengers’ pain, and we are doing everything possible behind the scenes to reduce these costs,”he said.
Boluwatife Enome
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