The Chief Commercial Officer of United Nigeria Airlines, Adedayo Olawuyi, has urged the Federal Government to reduce aviation charges and taxes as an intervention to make air travel more affordable.
Speaking as a panelist at the AeroWest conference held in Lagos on Wednesday, with the topic, “The Real Cost of Running Aviation Business: Fixing Connectivity, Affordability, FX, Fuel and Border Friction,” Olawuyi said domestic airlines require lower aviation charges because high charges increase the cost of tickets. He added that tax reduction is a critical intervention needed to improve air travel affordability.
Olawuyi explained that ticket prices reflect deep structural problems in the aviation industry, as airlines sell tickets in naira while their biggest expenses are in foreign currency. He said this mismatch forces airlines to absorb significant losses.
“How many of you would take a loan of 30% to invest in a business that gives you less than 5% profit? That is a pressing issue for airlines in Africa, specifically in Nigeria, the cost of financing.
“Consider the cost of training a pilot. Pilots today are in high demand and are not cheap to come by. We have airlines in this country with grounded aircraft because there are no pilots available,” Olawuyi said.
The airline executive also said the absence of maintenance and repair facilities has led to additional foreign currency expenditures.
“Consider maintenance: we have to send aircraft abroad because we do not have MROs in this region. We are also spending on simulator training for pilots, meaning we earn Naira but spend USD,” Olawuyi explained.
On the issue of fuel prices, he said it represents another significant burden that airlines pass on to consumers. He said airlines went from buying fuel at N900 in December 2025 to N3,000 in 2026.
He added that this illustrates the cost of operations that airlines have absorbed.
He emphasised that these expenses cannot be cut without compromising safety.
“All of that must be covered. Why? Because safety must be paramount. While we are discussing connectivity as a solution to the problems we see today, it is not just the airlines alone that can solve the problem. Government needs to create an enabling environment for us.
“We all focus on making money from airlines. As my boss says, the airline is the goose that lays the golden egg, and everybody wants a piece of it. But at the end of the day, if the goose dies, everything is lost,” he said.
Olawuyi stressed that no single entity can solve the challenges facing the aviation sector, saying: “There is not a single part of this puzzle that can be fixed by just one person. The government cannot fix it alone, the regulators cannot fix it alone, and the airlines themselves cannot fix it alone.
“In the room today, we have tourism operators. You need connectivity to travel for business. So, all we are saying is that there has to be cooperation among all these stakeholders to improve connectivity within West and Central Africa.”
Addressing the financial realities facing carriers, he said: “Every airline is set up to make money. I would not operate a route today where I cannot sustain operations.
“West Africa has many thin routes. Airlines must consider different aircraft sizes and types that will help them remain profitable on every sector they fly. It becomes challenging to operate on thin markets with an aircraft like a 737 when the maximum number of passengers available on that route is only four.”
