No Nigerian airline recorded as much as $1 million in annual profit, Air Peace Chairman Allen Onyema said Thursday, challenging the perception that carriers are reaping large gains from high airfares.
Speaking at the 30th anniversary conference of the League of Aviation Correspondents in Lagos, Onyema said the financial pressures on local airlines remain severe despite substantial industry revenues.
“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,” he told the gathering.
The conference, themed “Towards a Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth,” examined the tension between government fiscal needs and the long-term viability of the sector.
Onyema argued that airlines should not be treated primarily as a direct source of government revenue. “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,” he said.
He pointed to the heavy burden of taxes, regulatory charges, airport fees and fuel costs, noting that six of these levies are already embedded in ticket prices. Onyema called for the abolition of the five percent Ticket Sales Charge and Cargo Sales Charge in favour of a fixed unit charge, and urged the harmonisation of aviation taxes to reduce duplication.
Industry figures presented at the event indicated that aviation contributes about $2.5 billion annually to Nigeria’s GDP and supports more than 217,000 jobs.
Representatives of private airport operators echoed the call for a more balanced approach. “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,” said Remi Jibodu, acting chief operating officer of Bi-Courtney Aviation Services, speaking on behalf of the company’s chairman.
Onyema concluded that only improved profitability would secure the future of Nigerian air travel.
