The Chairman of Air Peace Limited, Mr Allen Onyema, has asserted that Nigeria currently records the cheapest domestic airfares in the world when compared with other countries, despite widespread public complaints about rising ticket prices across the country.
Speaking during an interview on Arise Television on Monday, Onyema dismissed claims that domestic air travel in Nigeria is excessively expensive, insisting that fares within the country remain significantly lower than what passengers pay for similar flight durations in other parts of the world. According to him, the perception of high ticket prices must be understood within the broader context of global aviation costs and the unique operational challenges facing Nigerian airlines.
“Nigerians are flying the cheapest fares in the world domestically, the cheapest,” Onyema said during the programme. “I will prove it to you. Not this season, not just during the yuletide, but generally. Nigerians are paying the cheapest.”
He explained that a one hour flight in many foreign countries typically costs more than 400 dollars, whereas passengers in Nigeria can still access domestic tickets for about N125,000, which he said is less than 60 dollars at prevailing exchange rates. Onyema argued that this stark difference demonstrates that Nigerian airlines are operating under intense financial pressure while maintaining fares that are far below global averages.
Using this comparison, the Air Peace chairman linked the affordability of domestic tickets in Nigeria to the high failure rate within the country’s aviation industry. He noted that more than 80 airlines have collapsed over the years, largely because operators are unable to sustain operations under mounting costs while keeping fares relatively low.
“This is why the mortality rate of airlines in Nigeria is very high,” Onyema stated. “Over 80 airlines have come and gone. People do not understand the economics of aviation in this country. Airlines are expected to operate world class equipment, meet international safety standards, and still sell tickets at prices that are far lower than what is obtainable elsewhere.”
Onyema further explained that the recent increase in ticket prices, which has triggered public criticism and complaints from travellers, is not arbitrary but largely driven by rising operational and maintenance costs. He pointed out that aviation is a dollar dependent industry and that fluctuations in foreign exchange, coupled with limited access to forex, have significantly increased the cost of doing business for Nigerian carriers.
According to him, aircraft maintenance, spare parts, insurance, leasing agreements and training are all priced in foreign currency, making airline operations increasingly expensive in an economy grappling with currency depreciation. He added that fuel costs, airport charges, navigation fees and other regulatory expenses have also risen sharply, placing additional strain on airline finances.
“Nigerian airlines are not increasing fares because they want to exploit passengers,” Onyema said. “They are responding to harsh realities. Maintenance costs have gone up, spare parts are paid for in dollars, and even basic operational requirements have become extremely expensive. If airlines do not adjust fares, they will simply go out of business.”
The Air Peace chairman also emphasised that seasonal demand, particularly during festive periods such as Christmas and New Year, often leads to temporary fare increases. He explained that this is a global aviation practice driven by supply and demand dynamics, adding that Nigeria is not an exception.
In recent months, Nigerians have expressed growing frustration over the cost of domestic flights, with many travellers taking to social media to complain that air travel is becoming unaffordable for the average citizen. Some passengers have argued that fare increases are unjustified, especially in a country where road travel remains dangerous and rail services are limited in coverage.
However, Onyema urged Nigerians to take a more balanced view of the situation, stressing that airlines must remain financially viable in order to guarantee safety, reliability and continuity of service. He warned that pushing airlines to operate at unsustainable fare levels could further weaken the industry and lead to more airline failures.
He also called for stronger government support for the aviation sector, including improved access to foreign exchange, reduced operational charges and policies that encourage local aircraft maintenance and leasing. According to him, such measures would help reduce costs for airlines and ultimately translate to more stable and affordable fares for passengers.
Onyema reiterated that Air Peace, as a Nigerian owned carrier, remains committed to providing safe, reliable and affordable air travel while navigating the difficult operating environment. He said the airline continues to invest heavily in fleet expansion, staff training and safety infrastructure despite the challenges confronting the industry.
As debates over domestic airfares continue, Onyema’s comments have reignited discussions about the true cost of air travel in Nigeria and the sustainability of the country’s aviation sector. While passengers grapple with rising ticket prices, airline operators maintain that current fares remain among the lowest globally and are insufficient to fully offset the escalating costs of operations.
The comments underscore the complex balance between affordability for passengers and survival for airlines in an industry that is capital intensive, highly regulated and vulnerable to economic shocks.
