The persistent rise in airline ticket prices in Nigeria is not driven by profiteering airlines but by harsh economic realities, capacity constraints and heavy statutory charges embedded in the aviation system, according to Mr. Bankole Bernard, Group Managing Director of Finchglow Holdings.
Speaking on airfare pricing and the structure of ticket costs, Bernard said fares must be understood strictly as a commercial outcome shaped by demand and supply, rising operational expenses and government-imposed taxes and levies that significantly dilute airline revenue.
“When demand outweighs supply, the cost will go up. That is the reality of any commercial product,” Bernard stated, stressing that airfare responds directly to seat availability and passenger volumes.
He acknowledged that the burden of rising fares is felt more sharply by passengers during periods of economic hardship but insisted that airlines have limited control over macroeconomic conditions.
“There is nothing you and I can do about the economy. There is nothing you and I can do,” he said, pointing to foreign exchange pressures, inflation and escalating operating costs that inevitably reflect in ticket prices across domestic routes.
Capacity, Frequency and Price Pressure
Bernard explained that ticket costs can ease when government policies support route expansion and increased flight frequencies, noting that greater capacity naturally reduces pressure on pricing.
“When we have more frequent routes, the pressure reduces one way or the other,” he said, adding that airlines depend on a delicate balance of volume and yield to remain viable.
He also revealed that airlines do not retain the full value of ticket sales, as a significant portion goes to taxes and charges.
“If a ticket is one thousand naira, about forty-five per cent goes to taxes and charges. The airline does not take the full amount,” Bernard disclosed.
According to him, airlines merely act as collection agents for government agencies, passing statutory charges directly to passengers.
“They are not going to absorb the cost. They will pass it on in the goods they are selling,” he said, explaining why multiple levies are deeply embedded in final ticket prices.
Airport Costs and Structural Inefficiencies
Bernard linked rising ticket costs to Nigeria’s airport operating model, noting that the country runs 22 federal airports, many of which generate limited revenue and rely on government subsidies.
He explained that the overheads from running these facilities ultimately feed into aviation charges nationwide, influencing what passengers pay.
While supporting airport development as a long-term capital investment, Bernard argued that airports should be run as commercial enterprises, not government departments.
“Government is not in the business of running business. They are regulators,” he said, advocating concession and professional management to improve efficiency, reduce waste and stabilise ticket prices over time.
Demand Remains Strong Despite High Fares
Despite public complaints over ticket costs, Bernard revealed that Finchglow Group recorded growth in bookings over the past year, underscoring resilient demand for air travel.
“People are flying,” he said, noting that growing safety concerns on Nigeria’s highways continue to push travellers towards air transport.
However, he warned that infrastructure development has not kept pace with passenger growth, calling for urgent improvements in basic amenities at airports.
“One of the key things is free Wi-Fi. Everywhere around the world, you see it, and I don’t know why it is so difficult,” Bernard said, stressing that modern infrastructure is critical to passenger satisfaction and managing expectations around ticket costs.
The Way Forward
Bernard concluded that sustainably reducing ticket prices will require coordinated reforms, including the reduction of taxes and levies, improved airport infrastructure, expanded flight capacity and a clearer definition of government’s role strictly as regulator.
He added that aligning Nigeria’s aviation framework with global best practices championed by bodies such as the International Air Transport Association (IATA) remains essential if air travel is to become more affordable without compromising safety or service delivery.