Nigerian Airlines Make ₦8 Profit Per Kilometre Despite High Airfares — AOPAN

Despite persistently high ticket prices, Nigerian airlines are reportedly earning only about ₦8 per passenger per kilometre in net profit, highlighting thin margins in the domestic aviation market, the Aircraft Owners and Pilots Association of Nigeria (AOPAN) has said.

According to AOPAN President Dr. Alex Nwuba, the modest profit figure reflects structural cost pressures faced by carriers, including high fuel and foreign-exchange costs, multiple taxes and levies, and elevated operating expenses all of which erode revenue despite relatively expensive ticket prices.

Dr. Nwuba explained that although average domestic airfares may appear high to travellers, much of the revenue is absorbed by airline costs, leaving limited actual profit per kilometre flown. He argued that this dynamic contradicts claims that Nigerian airfares are “cheap” on a global basis, noting that profitability remains weak when assessed alongside operating outlays.

Industry stakeholders say the profit margin underlines the need for broader reforms, including rationalisation of levies, stabilised foreign-exchange access for airlines, and policies to reduce cost burdens, if carriers are to achieve healthier financial performance and sustain network expansion.

By Oshuniran Sheriff Ola