Nigeria’s Air Fares Cheapest Globally Despite Hikes – United Airline Boss

Nigeria’s domestic air travel remains one of the cheapest globally, despite complaints over rising ticket prices, according to Prof. Obiora Okonkwo, Chairman and CEO of United Airlines Limited and spokesperson for airline operators in Nigeria.

Speaking on Channels Television’s The Morning Brief, Okonkwo attributed the relatively low fares to intense financial pressure on Nigerian carriers, who face higher operational expenses due to unfavourable loan terms, multiple taxes, and dollar-denominated costs.

“Internal air travel within Nigeria is one of the cheapest,” Okonkwo said, noting that airlines worldwide operate the same aircraft market and pay similar staff costs, but Nigerian operators face unique challenges.

He cited examples of high operational costs, including dollar-denominated expenses for spare parts, maintenance, and equipment procurement, as well as high interest rates on loans (30-35% in Nigeria vs 2-7% globally).

Okonkwo dismissed claims of price gouging, attributing recent ticket price spikes to increased travel demand during the festive season, saying similar trends occur globally during peak travel periods.

He urged authorities to remove taxes and levies to help sustain airlines, noting that Nigeria has had high airline mortality rates in recent years.