High Aviation Charges & Taxes Driving Up Cost Of Flights – United Nigeria Airlines CCO, Olawuyi

The Chief Commercial Officer of United Nigeria Airlines, Adedayo Olawuyi, has called on the Federal Government to reduce aviation charges and taxes as a key intervention to make air travel more affordable in Nigeria.

 

Olawuyi made the call on Wednesday during a panel session at the AeroWest Conference in Lagos. The session was themed: _“The Real Cost of Running Aviation Business: Fixing Connectivity, Affordability, FX, Fuel and Border Friction.”_

The airline executive said domestic carriers are burdened by high charges that directly drive up ticket prices.

“Domestic airlines require lower aviation charges because high charges increase the cost of tickets, and tax reduction is a critical intervention needed to improve air travel affordability,” Olawuyi said.

He explained that ticket prices reflect deeper structural problems in the industry. According to him, airlines sell tickets in naira but incur most of their major costs in foreign currency, a mismatch that forces carriers to absorb significant losses.

Olawuyi highlighted the prohibitive cost of financing in Nigeria as another major challenge.

“How many of you would take a loan of 30% to invest in a business that gives you less than 5% profit? That is a pressing issue for airlines in Africa, specifically in Nigeria – the cost of financing,” he said.

He also pointed to a shortage and high cost of trained pilots, noting that some airlines have aircraft grounded due to lack of flight crew.

On maintenance, he said the absence of functional MROs in the region forces Nigerian airlines to ferry aircraft abroad for repairs, adding to foreign exchange expenditure.

“Consider maintenance: we have to send aircraft abroad because we do not have MROs in this region. We are also spending on simulator training for pilots, meaning we earn Naira but spend USD,” Olawuyi explained.

On aviation fuel, the CCO said the spike in prices has become another heavy burden passed on to passengers.

He noted that airlines went from buying fuel at N900 per litre in December 2025 to N3,000 per litre in 2026, illustrating the sharp rise in operational costs that carriers have had to absorb.

He stressed that these expenses cannot be cut without compromising safety.
“All of that must be covered. Why? Because safety must be paramount,” he said.

“While we are discussing connectivity as a solution to the problems we see today, it is not just the airlines alone that can solve the problem. Government needs to create an enabling environment for us.”

Using an analogy, Olawuyi said: “We all focus on making money from airlines. As my boss says, the airline is the goose that lays the golden egg, and everybody wants a piece of it. But at the end of the day, if the goose dies, everything is lost.”

Olawuyi emphasized that fixing aviation challenges will require collaboration among government, regulators, airlines and other industry players.

“There is not a single part of this puzzle that can be fixed by just one person. The government cannot fix it alone, the regulators cannot fix it alone, and the airlines themselves cannot fix it alone,” he said.

“In the room today, we have tourism operators. You need connectivity to travel for business. So, all we are saying is that there has to be cooperation among all these stakeholders to improve connectivity within West and Central Africa.”

Addressing the financial reality of operations, he said airlines must be deliberate about route planning to remain profitable.

“Every airline is set up to make money. I would not operate a route today where I cannot sustain operations.

“West Africa has many thin routes. Airlines must consider different aircraft sizes and types that will help them remain profitable on every sector they fly. It becomes challenging to operate on thin markets with an aircraft like a 737 when the maximum number of passengers available on that route is only four.”

Leave a Reply

Your email address will not be published. Required fields are marked *