Air Peace justifies flight ticket costs, citing high operational expenses, including fuel, insurance, and foreign exchange rates. The airline refutes exploitation claims, emphasizing its efforts to maintain affordable fares despite challenges. COO Oluwatoyin Olajide highlights the need for sustainable pricing and praises government support for Nigeria’s aviation sector.
Air Peace, one of Nigeria’s leading airlines, has defended the cost structure of flight tickets in the country, asserting that a one-hour flight should cost between N500,000 and N700,000 to reflect the high operational costs. Chief Operating Officer Oluwatoyin Olajide refuted claims by the Federal Competition and Consumer Protection Commission (FCCPC) that the airline exploits passengers, calling such allegations baseless and damaging.
Olajide highlighted that aviation fuel alone, accounting for 60-65% of costs, is priced at nearly N1,400 per litre. A single hour-long flight requires approximately 4,000 litres of Jet A1 fuel, equating to a fuel expense of N7 million. Additionally, insurance premiums for Nigerian airlines are triple the global average, contributing another N5 million per flight.
The COO noted that all essential aircraft components are purchased in foreign currencies, further inflating costs, and decried the prohibitive interest rates of 30% faced by Nigerian airlines compared to 3% in countries like the U.S. and U.K. Despite these challenges, Air Peace charges N95,000 to N120,000 for a one-hour flight, significantly lower than its ideal pricing, to make air travel more accessible.
Olajide also addressed international slot allocations, stating that foreign authorities prioritize other airlines due to Nigeria's perceived treatment of its carriers. She commended President Tinubu’s administration for supporting the aviation industry while emphasizing Air Peace’s efforts to reduce airfares on international routes and uphold affordable travel.
She called for fairness and factual reporting, stressing that operating sustainably in Nigeria’s aviation sector requires significant sacrifices.
