Yuletide: We fly return legs at zero revenue, yet Nigerians pay world’s cheapest fares — Onyema
The Chairman and Chief Executive Officer of Air Peace, Dr. Allen Onyema, has strongly defended the current pricing structure of Nigerian airlines, arguing that despite public outcry over high ticket costs, Nigerians still pay the lowest domestic airfares globally when adjusted for operational realities and exchange rates.
Onyema, who spoke during an interview on ARISE News on Sunday, dismissed allegations by government agencies that airlines were engaging in coordinated price gouging or exploitative practices.
He described such claims as unfair and lacking in empirical basis, particularly given the unique operational challenges airlines face during the festive season.
According to the Air Peace boss, the perceived hike in fares on Southeast routes during the Christmas period is dictated by simple economics rather than a desire to exploit passengers.
He explained that during this season, traffic is almost entirely unidirectional; while aircraft depart Lagos or Abuja full of passengers heading to the Southeast, they return to base almost completely empty.
He noted that airlines are forced to factor the cost of the empty return leg into the outbound ticket, similar to how charter operations work, yet they still struggle to break even.
Onyema lamented that on many occasions, the return flights record zero passengers, meaning the airline bears the full cost of fuel, crew, and maintenance for the return journey without generating a single naira in revenue.
He questioned who critics expect to pay for the cost of bringing the aircraft back to base to pick up the next set of passengers, emphasizing that these operational losses are often ignored in the public conversation about ticket pricing.
Despite these heavy operational burdens, Onyema insisted that domestic travel in Nigeria remains the cheapest in the world. Breaking down the figures, he pointed out that ticket prices ranging from N115,000 to N125,000 amount to less than $60 when converted at current exchange rates.
He challenged critics to compare these figures with aviation markets in the United States or Europe, where similar flight durations command significantly higher fares in dollar terms.
He argued that if Nigerian airlines were to charge truly reflective rates based on their dollarized operating costs such as wet-lease rates of $6,000 per hour fares would be exponentially higher.
The Air Peace Chairman also highlighted that a significant portion of what passengers pay does not go to the airlines.
He revealed that approximately 65 to 70 per cent of ticket revenues are swallowed by taxes, levies, and charges from various regulatory and airport authorities, leaving airlines with a meager fraction to cover maintenance, fuel, and staff costs.
He described the airlines as sacrificial lambs"
being demonized for keeping the country connected under excruciating economic conditions.
Onyema further cautioned that the sustained demonization of local carriers and a lack of understanding of airline economics have contributed to the high mortality rate in the industry.
He cited the collapse of over 80 airlines in Nigeria’s aviation history as proof of the hostile operating environment, warning that continued pressure on airlines to lower fares below their operating costs would only lead to more bankruptcies.
He appealed to government agencies and the flying public to appreciate the sacrifices of domestic carriers rather than branding them as exploiters.