Nigerian Domestic Air Fares Remain Among World’s Lowest Despite Festive Hikes, Says Air Peace CEO
In a candid interview that has stirred conversation across the African aviation landscape, Allen Onyema, Chairman and CEO of Air Peace, asserted that Nigerians continue to benefit from some of the world’s lowest domestic air fares—even amid seasonal fare increases. Onyema’s remarks, delivered on ARISE NEWS, come at a time when major Nigerian carriers, including Air Peace and United Nigeria Airlines, have implemented significant price adjustments for the busy December 2025 to January 2026 period.
Onyema emphasized that, despite public perception, domestic flight prices in Nigeria remain dramatically lower than similar routes abroad. He pointed to examples such as the Lagos–Abuja corridor and key routes to the South-East and South-South, where even peak season fares—set at around N350,500—still undercut comparable international journeys. United Nigeria Airlines and Ibom Air have also increased fares, with tickets for flights to Enugu, Owerri, and Asaba reaching N335,500 to N399,999 during the festive rush, a considerable jump from pre-holiday prices that hovered around N125,500.
To drive his point home, Onyema drew direct comparisons with international markets. He cited the Atlanta–Charleston route in the United States—less than 50 minutes by air—where a mid-January 2026 ticket on Delta Air Lines is priced at \$399 one-way. At the prevailing exchange rate, this equates to more than N600,000, a stark contrast to Nigeria’s one-hour flights, which can still be found for as little as N115,000 to N125,000 (less than \$60). These figures, Onyema argued, highlight the exceptional value Nigerian travelers continue to enjoy domestically, even as airlines face mounting operating challenges.
Onyema was quick to dismiss suggestions that aviation pricing should differ by geography, arguing that cost structures in the airline industry are fundamentally global. He explained, “Aviation is the same aviation worldwide. We buy our spares from the same market. You buy your aircraft from the same market. In fact, they’re even in a better state than us. What’s all the financing? They borrow money at 2%. Nigerian airlines borrow at 35%.”
He went on to highlight a host of operational headwinds facing Nigerian carriers. High interest rates, expensive maintenance requirements, and the absence of local infrastructure place domestic airlines at a distinct disadvantage compared to their international counterparts. “For the Nigerian airline to do any maintenance that requires base maintenance, you have to ferry your aircraft, spending about \$400,000 just on ferrying alone. If you want to bring back your engine, you can pay as much as \$1.5 million,” Onyema said. He further noted that while European and North American airlines enjoy access to nearby MRO (Maintenance, Repair, and Overhaul) facilities and favorable financing, Nigerian carriers must contend with logistical and financial burdens that eat into already thin margins.
Onyema also warned that these harsh business realities have contributed to the collapse of more than 80 Nigerian airlines over recent decades. He cautioned that the practice of maintaining ultra-low pricing, especially in the face of rising costs, could further undermine the survival of local operators. “Nothing is produced in Nigeria,” he lamented, underlining the dependence on imported parts, aircraft, and services that are all subject to foreign exchange rates and global price fluctuations.
For Africa’s aviation and tourism professionals, Onyema’s insights offer a sobering perspective on the fine balance between affordability and sustainability in the region’s air travel sector. While low fares have historically fueled growth in Nigeria’s domestic aviation market, they have also contributed to high airline turnover and persistent financial instability. As demand for air travel continues to rise—especially during peak periods—industry stakeholders face a difficult task: ensuring that pricing remains accessible for Nigerian consumers while also preserving the financial health and long-term viability of local carriers.
The seasonal spike in fares, though unpopular with many travelers, may be a necessary response to inflationary pressures, currency volatility, and the escalating costs of doing business in Nigeria. For African travel businesses and corporate clients, the lesson is clear: the era of consistently ultra-low fares may be coming to an end as airlines seek a more sustainable equilibrium between customer value and commercial viability. The coming years will likely see a recalibration of business models and pricing strategies across the continent as operators strive to deliver both reliability and resilience in a challenging market environment.
