Nigerian airlines made zero $1M profits in 2025 as costs crush margins - Air Peace CEO

Air Peace CEO Allen Onyema stated no Nigerian airline earned $1 million profit in 2025, citing crushing operating costs. Speaking at LAAC's Lagos conference Thursday, he revealed direct costs hit N180,000 per seat with aviation fuel exceeding 40% of expenses. Airlines face 54 taxes, fees and charges across NCAA, FAAN, NAMA and FIRS - including six built into tickets like Passenger Service Charge and CUTE fee - adding roughly N25,000 to domestic fares and $150-180 to international tickets. An APIS levy of $11.50 was introduced December 2025.

These costs force higher ticket prices, weakening demand as middle-class travelers shift to road travel (despite risks) or virtual meetings for Lagos-Abuja trips. Onyema argued this cycle prevents airlines from generating profits needed for reinvestment and growth. He urged harmonizing aviation taxes, scrapping the 5% Ticket Sales Charge and replacing percentage-based fees with fixed unit costs per ticket for predictability. LAAC chairman echoed calls for pre-policy stakeholder consultation on charges and infrastructure funds.

Despite ECOWAS announcing plans in December 2025 to abolish air ticket taxes across West Africa from January 1, 2026, the abolition had not taken effect by September 2026. The Atlantic Council notes West Africa has the continent's highest average air passenger tax at $110 per departure - over triple Europe's $32 for similar routes. Will you absorb these costs through pricier tickets, seek alternatives like virtual meetings, or accept higher road travel risks for your journeys?

SOURCE: https://nairametrics.com/2026/09/11/no-nigerian-airline-made-1-million-profit-in-2025-allen-onyema/