The Chairman and Chief Executive Officer of Air Peace, Allen Onyema, has said Nigerians are currently paying the lowest domestic airfares in the world, despite recent fare increases during the yuletide season.
Speaking in an interview with ARISE NEWS on Sunday, Onyema explained that one-hour flights abroad often cost more than $400, while equivalent domestic routes remain available for as low as N125,000. He argued that this pricing disparity has contributed to the high failure rate among local airlines.
“Nigerians are flying the cheapest fares in the world, domestically. Generally, even this season, Nigerians are paying the cheapest,” Onyema said.
The remarks come amid rising domestic fares, with airlines such as Air Peace and United Nigeria Airlines announcing increases effective from December 1, 2025, through January 2026. Air Peace has set fares at N350,500 for key routes including Lagos–Abuja and flights to the South-East and South-South, while United Nigeria Airlines has similarly pegged fares at N350,500. Other carriers, including Ibom Air, have raised prices from N125,500 to N335,500 for flights to Enugu, Owerri, and Asaba starting December 11. A one-way Lagos–Asaba ticket on United Nigeria Airlines is listed at N399,999 for December 24, representing a sharp increase from pre-festive levels.
Onyema cited comparisons with international flights to support his claims. He said Delta Air Lines’ Atlanta–Charleston route, a flight of less than 50 minutes, is priced at approximately $399 one-way, which translates to over N600,000 at current exchange rates. In contrast, he noted, Nigerian carriers still offer tickets for N115,000–N125,000.
He also highlighted operational challenges unique to Nigeria, including high borrowing costs, maintenance expenses, and limited local infrastructure. “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,” he said.
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Onyema warned that continued low pricing amid rising operational costs could worsen the mortality rate in the local aviation sector, which has seen over 80 airlines collapse in past years.
He emphasised that the global aviation industry operates under the same cost structures and market conditions, but Nigerian airlines face additional financial and infrastructural pressures that make sustainability challenging.
Despite the fare increases, Onyema maintained that domestic air travel in Nigeria remains highly affordable compared to equivalent routes abroad, with consumers ultimately benefiting from competition in the sector.