No Nigerian airline made $1m in profit in 2025, Air Peace Chief Executive Officer, Allen Onyema, has said, attributing the industry’s weak profitability to high operating costs.

Onyema disclosed this while delivering the keynote address at the 30th annual conference of the League of Airport and Aviation Correspondents in Lagos on Thursday.

The conference was themed, “Towards a Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth.”

He said high aviation fuel costs, alongside multiple taxes, fees and charges, were putting significant pressure on airlines’ finances and making it difficult for operators to remain profitable and competitive.

Onyema said Air Peace, Nigeria’s largest airline, did not make $1m in profit in 2025, questioning whether any other Nigerian carrier achieved that level amid the high cost of operations.

“If Air Peace, the biggest carrier and the biggest revenue generator, could not make $1 million in profit at the end of 2025, I don’t think there is any other airline that would have done so. None of them. It is as bad as that,” Onyema said.

Onyema said the direct operating cost of running an airline in Nigeria was about N180,000 per seat, with aviation fuel accounting for more than 40 per cent of total operating costs.

He added that airlines face about 54 taxes, fees and charges imposed by agencies including the NCAA, FAAN, NAMA and the Nigeria Revenue Service, with several of the charges passed directly to passengers through their tickets.

Onyema said the cumulative burden of taxes, fees, charges and other operating expenses made it difficult for airlines to keep fares affordable while maintaining sustainable profit margins.

High costs weigh on passenger demand

He said the rising cost of aviation fuel, taxes and other charges was ultimately reflected in higher airfares, weakening passenger demand.

Onyema said expensive tickets were increasingly driving middle-class Nigerians away from air travel, despite the safety risks associated with road transportation.

He added that companies and government agencies had also cut travel budgets, with some replacing trips between Lagos and Abuja with virtual meetings.

He identified six major charges contributing to the cost burden on airlines.

Onyema said the charges could add about N25,000 to the cost of domestic air tickets, while charges on international flights could amount to between $150 and $180.