United Nigeria Airlines Calls for Lower Taxes, Charges to Ease Air Travel Costs
United Nigeria Airlines is urging the Federal Government to cut aviation taxes and charges, arguing that reduced levies would help bring down ticket prices and make flying more affordable for Nigerians.
Chief Commercial Officer Adedayo Olawuyi made the appeal during an AeroWest conference panel in Lagos on “The Real Cost of Running Aviation Business: Fixing Connectivity, Affordability, FX, Fuel and Border Friction.”
He said high charges directly inflate fares at a time when airlines already sell tickets in naira while covering major expenses in foreign currency.
“Ticket prices reflect deep structural problems in the industry. Airlines earn naira but spend dollars on key costs. That mismatch forces us to absorb significant losses,” Olawuyi said.
He listed the financial pressures facing domestic carriers: borrowing at 30 percent interest in a business that often returns less than five percent; costly pilot training amid a global shortage; grounded aircraft due to lack of crew; maintenance and simulator training paid in dollars; and jet fuel prices that jumped from N900 in December 2025 to N3,000 in 2026.
“Consider pilot training. Pilots are in high demand and not cheap to come by. We have airlines with grounded aircraft because there are no pilots available,” he said.
Olawuyi stressed that such costs cannot be cut without compromising safety and called for a more supportive regulatory and fiscal environment.
“Government needs to create an enabling environment for us. This is not something airlines can solve alone,” he said.
He also warned against overburdening carriers with multiple levies.
“The airline is the goose that lays the golden egg, and everybody wants a piece of it. But if the goose dies, everything is lost.”
He said meaningful progress requires cooperation among government, regulators, airlines, and tourism operators, particularly to improve regional connectivity in West and Central Africa.
On route viability, Olawuyi said carriers must match aircraft size to passenger demand.
“It becomes challenging to operate on thin markets with a 737 when the maximum number of passengers available on that route is only four.”