The Chairman of Air Peace, Allen Onyema, has disclosed that no Nigerian airline recorded an annual profit of $1 million in 2025, despite the billions of naira generated across the aviation industry.
Onyema made the disclosure on Thursday at the 30th anniversary conference of the League of Aviation Correspondents in Lagos, where industry stakeholders examined the challenges confronting the sector.
The conference, themed “Towards a Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth,” brought together government representatives, airline operators, regulators, investors and aviation journalists.
Addressing concerns over soaring airfares, Onyema said the perception that airlines were making huge profits from increased ticket prices did not reflect their actual financial position.
He said, “No airline made $1m in profit. Yes, if Air Peace is the biggest carrier in revenue as well, and did not make $1m in 2025, then I don’t think there is any other airline that may make such money.”
The disclosure comes amid growing complaints from passengers over expensive air tickets and the numerous taxes and charges associated with air travel, with airlines frequently blamed for rising fares.
However, Onyema argued that carriers operate under significant financial pressure, pointing to fuel expenses, airport charges, regulatory costs, taxes and other operational expenses as major drains on airline revenues.
He maintained that the government should not focus on aviation as a direct source of revenue, saying the industry creates wider economic value through tourism, employment, trade and improved connectivity.
Onyema said, “You don’t use airlines per se to raise revenue for the nation. Airlines are not used to raise revenue directly, but indirectly. They energise the ecosystem for the government to make money through tourism, economic integration and so many other things.”
Data presented at the conference showed that the aviation industry contributes approximately $2.5bn annually to Nigeria’s Gross Domestic Product and provides support for more than 217,000 jobs.
Despite its contribution to the economy, airline operators described Nigeria as a costly environment for aviation businesses, citing the numerous taxes and charges imposed by government and aviation agencies.
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Onyema said airlines face dozens of such levies, with six directly reflected in passenger tickets. These include passenger service charges, terminal facility charges, ticket sales charges, excess baggage charges and security levies.
He called for the removal of the five per cent Ticket Sales Charge and Cargo Sales Charge, arguing that replacing them with a fixed unit charge would provide a more sustainable structure for airlines dealing with rising fuel prices and other operational expenses.
The Air Peace chairman also advocated the harmonisation of aviation taxes and levies to prevent duplication and instances of double taxation.
His concerns were echoed by the Chairman of Bi-Courtney Aviation Services, Olalekan Babalakin, who was represented at the conference by the company’s Acting Chief Operating Officer, Remi Jibodu.
Jibodu pointed to the experience of the Murtala Muhammed Airport Terminal 2 as evidence of what private investment can deliver when government and investors operate under stable and predictable conditions.
Jibodu said, “Government revenue and industry growth should not be viewed as competing objectives. A thriving aviation industry ultimately creates a stronger and more sustainable revenue base for the government.”
He urged the government to maintain consistent policies, honour contractual agreements and establish conditions that would encourage sustained private investment in airport infrastructure.
The airline sector, Onyema added, needs an approach that looks beyond the immediate revenue government can collect and instead prioritises measures that will expand the industry and improve its long-term profitability.
“It is profitability that will sustain their existence and also sustain and grow air travel in Nigeria,” he said.
Meanwhile, the Chairman of the League of Aviation Correspondents, Idris Suleiman, urged the government to strengthen engagement with stakeholders, including aviation agencies, airlines, airport operators, labour and investors, before introducing major fiscal or regulatory measures.
In its opening remarks, the League said the key issue was not whether the government should generate revenue from aviation, but “how much revenue can the sector reasonably bear without undermining its capacity to grow.”