The President of the Aircraft Owners and Pilots Association of Nigeria (AOPAN), Alexander Nwuba, has revealed that Nigerian domestic airlines are operating on dangerously thin profit margins, earning just about ₦8 per kilometre, despite persistent complaints over high air fares.
Dr Nwuba made the disclosure during an aviation town hall webinar titled “High Air Fares – Are Airlines Really the Problem?”, held in Lagos last week.
According to him, the razor-thin margins explain why the sector remains highly vulnerable to disruptions, rising operational costs, and the difficulty of keeping air fares affordable for passengers.
What They’re Saying
Dr Nwuba explained that domestic flights cost about ₦104 per kilometre to operate, while airlines generate only ₦112 per kilometre in revenue, leaving a marginal profit of ₦8.
He disclosed that operating a Boeing 737 on the busy Lagos–Abuja route costs roughly $9,000 per flight, based on a 162-seat configuration.
“Cost per seat ranges between ₦77,000 and ₦84,000 on such flights,” he said.
He added that for airlines to remain sustainable, air fares must exceed ₦100,000, stressing that anything lower reflects a low-cost model that most Nigerian airlines currently cannot sustain.
Industry observers say the figures highlight why domestic airlines continue to struggle, even as passengers feel the pinch of rising ticket prices—underscoring the fragile economics of Nigeria’s aviation sector.
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